Lower profits to hit Safestyle in first half

Weaker trading in recent months is set to hit window manufacturer Safestyle.

At the company’s AGM, Steve Halbert, chairman of Safestyle UK plc warned that profits for the Bradford manufacturer for the first half will be lower than the comparative period last year.

Halbert said that although revenues were set to increase, a combination of lower-than-planned volumes and running costs following investment in its new production facilities would push profits down.

It announced in February 2016 that it would be constructing a 61,892 sq ft factory adjacent to its facilities in Wombwell, South Yorkshire after a period of record sales and increased demand.

: “2017 started positively with robust order intake in the first quarter, however recent trading has been weaker than expected reflecting the latest FENSA statistics which have shown a significant contraction in the overall market in the first quarter of 2017. As a result, compared with an exceptionally strong equivalent trading period last year, the Group has seen more modest overall growth of 2% in order intake for the first four months of 2017.

“We have a number of initiatives underway and combined with the impact of enhanced production productivity, expect an improved performance in the second half of the financial year.

“The group continues to gain market share and to build its order book during the first half. While we are currently operating in a more challenging trading environment, the group’s balance sheet and cash generation remain strong and the Board is confident of delivering Full Year results broadly in line with market expectations.”