Manufacturer’s share price plummets on profit warning

Safestyle’s share price dropped 13.4% yesterday after the company warned that profits would not meet market expectations this year.

Yesterday it said that while it expected to return to profit this year, it would be less than initially expected.

However it insisted that it was “cautiously optimistic” about its turnaround plans, and that the business had stabilised. Revenue will reportedly be in line with expectations, which anticipate a 10% increase in the first half, and a 20% increase in the second half of 2019 against comparable periods last year.

It has been a rollercoaster couple of years for the Bradford-based PVCu window and door manufacturer.

Back in 2017 it first began reporting that all was not well. It blamed “volatile” markets and “patchier consumer demand” for plummeting revenues and profits.

It has issued multiple profit warnings, and its shares lost 90% of their value between June 2017 and August 2018, when they fell to nearly 30p. Its shares had shown signs of recovery since then and despite yesterday’s drop, its shares closed at 79p.

It has also faced lengthy legal battle with competitor Safeglaze, and in a separate matter, was fined £120,000 for “aggressive, misleading or banned” sales practices

In May 2018, former CEO Steve Birmingham made way for Mike Gallacher, who has helped implement a three-phase turnaround plan.


Safestyle share price, year to 16 May 2019.

Close