Share price falls out the window at Safestyle

The share price at double glazing specialist Safestyle has plummeted following a trading statement this morning that warned of a drop in half year pre-tax profits and “volatile” markets.

In early morning trading, shares were down by more than 12.4%, and by the end of the day, Safetsyle’s shar eprice had plummeted 16.5%, closing at 215.5p.

The double glazing group announced this morning that pre-tax profits would be more in line with 2016 levels than the anticipated rise.

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 for the rest of the year.

AJ Bell investment director Russ Mould said: “Safestyle has continued to build market share but it is a bigger slice of a much smaller cake with the industry’s figures showing an overall decline in volume of more than 10%.

“Given the uncertain market conditions and weaker consumer confidence, Safestyle is being prudent in expecting only modest revenue growth for the remainder of the year.”

Steve Birmingham, CEO of Safestyle UK, commented this morning: “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.”

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