“Volatile” markets pose a challenge for Safestyle

“Volatile” markets have hit window and door manufacturer Safestyle, with the company predicting lower profits than anticipated for the year, more in line with 2016.

The Bradford-based group said in a trading statement this morning that the second quarter of the year, to 30 June 2017, had been “more volatile than we have experienced for a long time” and predicted ongoing modest revenue growth.

It said that against this backdrop of “patchier consumer demand” Safestyle continues to “significantly outperform the market” and to increase share.

However it did warn that profits for the year would be lower than previously anticipated and more in line with 2016 results.

It previously announced that it expected marginal revenue growth in the first half of 2017, with reduced profits, so this escalation will prove unwelcome for the business.

The company, which has long been on a fast growth track, said it expected only modest revenue growth again in the second half of the year, amidst uncertain market conditions and weaker consumer confidence.

Steve Birmingham, CEO of Safestyle UK, commented: “Despite the difficult market conditions we have increased our order intake in the first half and significantly grown our market share.

“The company has a proven successful model that includes a comprehensive product range, attractive promotional finance and price competitiveness supported by financial strength.
In anticipation of a continuation of the recent weaker trading environment we have taken firm action to reduce our operating costs in the second half.

“Having successfully completed the investment in our enhanced production facility on time and on budget, we are well positioned to take advantage of the upturn in demand when it occurs.”