Safestyle’s share price shatters in latest blow
Yesterday’s warning from Safestyle that sales for the final quarter of 2017 will be below “already reduced” expectations sent the company’s shares plummeting more than 14%.
The Bradford company, which also said it expects trading conditions next year to remain “very challenging”, saw its shares
drop 14.3%, or 27.25p, to 164p.
In September, the company signalled a continuing deterioration in the market resulting from declining customer confidence, prompting a cautious outlook.
Yesterday, it said that demand has weakened further, and in the three months to 30 November 2017 the group’s sales have been 0.3% lower by value, and 6.8% lower by volume, than the corresponding period in 2016.
It said that while it believes it has made significant market share gains in 2017, for the 11 month period to 30 November 2017 the group’s sales by value are 0.8% lower than for the same period in 2016.
“With sales in the short month of December not helped by severe weather disruption to the planned installation programme, it is clear that Q4 sales will now be below our already reduced expectations,” Safestyle said.
Safestyle has seen more than £100m knocked off its value this year after its earlier warnings.
However, Safestyle said it continues to be highly cash generative and expects to have a strong cash balance of approximately £12m at the year end and a robust balance sheet.
The completion of a major capital investment programme leaves the business “very well invested for future trading and any upturn in demand”, the company said.
