Organic growth key to success for manufacturer

ORGANIC growth is in the pipeline for one of the Alternative Investment Market’s newest additions – Safestyle UK.

The Yorkshire window and door manufacturer reported a rise in profits and revenue in its first full year results since its flotation in December, and now, said it plans to continue its growth organically.

Safestyle UK says order intake in the first quarter is up from the previous year and is confident that going forward, it will be able to build on its results.

Chief executive, Steve Birmingham, said: “We see 2014 very much following on from 2013. Our orders in the first quarter are up and market share is up. These two factors suggest 2014 will be a very good year for us.”

Safestyle, headquartered in Bradford, said its business plans are “very much more of the same” for the year ahead.

The manufacturer employs 600 staff at factories in Bradford and Barnsley and joined AIM in December with an initial market capitalisation of around £77m, making it the second largest AIM flotation of 2013.

During the year, the company added to its nationwide base of 29 sales offices and 10 installation depots with two new sales branches and two installation depots to ensure it is able to take full advantage of increasing demand in the South, South East and Greater London geographic area.

“We’ve opened two new sales offices but there are still quite a lot of areas under represented, so much of what we will do is reversing that under representation by increasing our presence organically,” Birmingham said.

“We will see how the two new offices go, but maybe by the end of the year we will open another branch.

“We are continuing to grow. The market is working in our favour. We want to get steady growth but keep the bottom line growing.”

The business has seen underlying EBITDA of £15.8m, up 52%, gross profit up 18% to £45.2m and revenue up 13% to £124.8m in its results for the year ended December 31 2013. Profit before tax, listing costs and tax settlement of £15m for the year has shown an increase of 58%.