Russian cyber attack cost manufacturer £4m
Manufacturer Safestyle remains optimistic it can stay in profit despite the £4m impact of a Russian cyber attack and worsening economic conditions.
The Bradford-based business expects its full-year underlying profits to now be “not lower than £1.0m” – a massive reduction on 2021’s £7.6m.
It endured a difficult first half of the year, with the hot summer causing disruption at its factory for two weeks and “softer sales” that required more and redirected TV advertising spend.
Safestyle recorded first-half pre-tax losses of £2.8m, although revenues were up 7% to £78.3m.
The windows and doors specialist has embarked on a “multi-year strategic investment programme” which this year will see £5m spent on initiatives including a full-year return to TV advertising, the start of a business development project, the launch of its Safestyle Academy to train window fitters.
Chief executive Mike Gallacher said Safestyle “remains committed to sustaining these strategic investments through the coming years”.
“This programme is designed to modernise the business, drive growth and build sustainable competitive advantage over the medium term,” he said.
“The group remains keenly focused on advancing our strategic priorities and believe these investments will leave us well positioned to deliver sustainable long-term performance for our shareholders.”
The cyber attack earlier this year resulted in a planned price rise in January not happening until late April. The increases were a response to cost inflation, so the delay impacted margins.