Safestyle reports losses of more than £16m as pre-tax figures drop 218%
Bradford-headquartered Safestyle UK has reported losses in profits and revenue following a “unique and challenging” year.
For the year ending 31 December 2018, the retailer and manufacturer of UPVC replacement windows and doors reported a pre-tax loss of £16.3m compared to a £13.8m profit in the year prior, marking a 218% decrease.
During this period, the company also saw revenues drop by 27% from £158.6m in 2017 to £116.4m, and gross profits experienced a 50% decline from £51.4m to £25.9m.
There were significant non-underlying items incurred in the year of £7.5m (2017: £1.3m). These consist of costs associated with litigation, restructuring, the Commercial Agreement and a fine from the Health and Safety Executive following prosecution for an incident which occurred in March 2017.
In September 2018, Safestyle announced a settlement of its claims against NIAMAC Developments, trading as SafeGlaze UK. The company had filed a legal claim against its competitor for alleged trade mark infringement, passing off, misuse of confidential information, malicious falsehood and various other matters.
As part of the settlement, SafeGlaze UK agreed to change trading name and re-brand fully within an agreed period of time.
Safestyle, which issued a profit warning in December, also made a number of senior appointments in 2018.
Mike Gallacher was appointed as CEO; Alan Lovell, was appointed as non-executive chairman; Rob Neale was appointed as CFO; Fiona Goldsmith joined the board as a non-executive director and chair of the Audit Committee; and Julia Porter also joined the board as a non-executive director.
Most recently, the company announced the resignation of chief operating officer Giles Richell.
Mike Gallacher, CEO of Safestyle UK, said: “The business faced a unique and challenging operating context in 2018, but I am pleased to say that, through the dedication and hard work of our people, we ended the year with our business stabilised and trading position materially improved.
“With many of the issues faced in 2018 behind us, our experienced management team is wholly focused on driving growth, improving margins and building on the underlying strengths of the business.
“We are the UK market leader, with a strong brand, industry leading production facilities and skilled people across the organisation. Whilst there is still much work to do, we look forward to the opportunities of the year ahead and returning Safestyle to profitability.”
