Profit warning wipes 30% off manufacturer’s shares

Shares in window and door manufacturer Safestyle UK slumped by 30% this morning, wiping £60m off its market value.

This comes after issuing  a profit warning this morning after announcing that the group’s order intake has “declined beyond its expectations.” Shares closed at a price of 165p, 30% down from 235p yesterday.

The Bradford-based group announced in July that given the uncertain market conditions and weaker consumer confidence it anticipated profit for the year would be lower than previously expected and broadly in line with 2016.

Since then, it said the group’s order intake has “declined beyond the board’s expectations”.

Safestyle said this was due to an accelerating weakness in the market resulting from increasing consumer caution, as evidenced by the latest FENSA statistics, which show that the overall market has deteriorated further, with installations down by 18% in June and July compared to 2016.

The group said it has continued to grow market share and remains “well positioned” in the event of a market recovery.

However, given the marked change in market conditions, it now expects full year 2017 group revenues to be flat year on year.

The company said: “At the same time, our efforts to drive order intake are incurring additional costs, thereby adversely affecting the group’s margin performance, and leading to a material impact on full year profits.

“The group remains cash generative, with a significant cash balance and a robust balance sheet.”

Safestyle will announce its interim results on September 21.