Revenues drop at listed windows and doors business
Safestyle UK, retailer and manufacturer of PVCu replacement windows and doors, says its revenues have fallen 10.3% from £126.2m to £113.2m.
Its final results for the 2020 financial year also feature a pre-tax loss of £6.2m, compared to £3.8m loss the previous year.
The Bradford-headquartered Group received £1.8m from the Government’s Coronavirus Job Retention Scheme (CJRS) which partly reduced the first half loss.
And it undertook a placing of new shares in April which raised £8.2m net of directly attributable costs of £0.3m to strengthen its balance sheet.
This allowed for a strong restart of operations in late May and a strong year end position, with year-end net cash of £7.6m (2019: £0.4m).
Safestyle says 2021 started with immediate disruption to its sales, as in-home selling and canvass operations were halted due to the renewed lockdown.
Restrictions have now eased and the Group says it is seeing a good recovery of sales momentum from 2020.
Revenue has grown by double digits in quarter one 2021 and levels of profitability have increased versus 2020 exit rate.
The company’s outlook report notes: “The Group has had a good start to 2021 and will achieve the highest level of profitability in quarter one for any quarter since 2017 while also maintaining a healthy installation pipeline.
“Despite the uncertain operating environment, the Board expects to see good levels of demand for its products and is recapturing the order intake momentum achieved in the second half of 2020 now restrictions on sales activities have been lifted.”
Mike Gallacher, CEO, said: “I am extremely proud of the way that our colleagues responded to what was a year with unparalleled challenges, at all times keeping a constant focus on health and safety while remaining committed to delivering for our customers.
“Having taken decisive action to support the business during the period, we saw a strong recovery in the second half of the year with good order intake growth and a step up in operational capacity, as customer demand remained robust.
“By the end of 2020, our order book was 83% larger than 2019’s closing position, which has given us a platform to maintain momentum at the beginning of the current financial year in spite of the external disruption.
“Notwithstanding the uncertain operating environment, as a result of the strategic and operational progress we have made along with our strong order book, cash position and market leading brand, the Board now expects the Group’s 2021 financial performance to be significantly ahead of market expectations.”