Notes from the City: Bullish Safestyle starts 2017 on strong footing and Augean reaches expectations

Window manufacturer Safestyle is trading well according to an update this morning.

The retailer said that revenues have increased 9.8% to £163.5m, though it was hit by slower growth in the second half in 2016.

Its “pleasing” performance will mean an increase in market share said the firm, with frame manufacturing up 3.2%, with more than 288,000 frames manufactured in the year.

Safestyle ended the year with cash of £13.5m, down from the £16.5m it had the year before due to a special dividend during the year of £5.6m and incurred £4.6m of expenditure on its new factory extension, which continues to be on time and on budget.

Steve Birmingham, CEO of Safestyle UK, commented: “I am pleased to report that trading during 2016 was consistently strong and that we have achieved another year of record turnover. 2017 will see increases in our raw material costs primarily due to sterling weakness.

“However, we plan to offset such increases by improving the price we obtain for our products. Despite the uncertain macroeconomic outlook, we remain cautiously optimistic and believe we are well positioned to continue growing the business.”

***

Wetherby waste management business Augean has performed well in 2016 and is looking to continue to diversify the business this year.

It has seen strong progress across all its divisions, though its radioactive waste services business is struggling with the decline in nuclear decommissioning volumes.

The business confirmed that pre-tax profits would be in line with market expectations, but that cash flows had improved during 2016 to £10.8m, £2.3m better than expected.

Augean said that the acquisition it made in May 2016, Colt Industrial Services, had made a slower than anticipated start but was showing signs of improvement and had a growing sales pipeline.

Its North Sea services division traded strongly in the second half after a loss-making first half of 2016, following investment at Port of Dundee.

Dr Stewart Davies, chief executive officer, commented:”We have had an encouraging start to the year and have good momentum across our businesses. Despite some challenging market conditions in 2016, we have secured further waste management contracts with top tier customers that will progressively diversify our revenue streams. In view of the opportunities ahead, the Board remains confident in the Group’s delivery of further sustainable growth, in line with our strategy.”