Window maker requests suspension of share trading
Safestyle has requested a suspension of trading in its shares after telling the stock market it does not expect its sale to generate any returns to shareholders.
The troubled Bradford door and window specialist said yesterday that it was in in “active discussions” with a shortlist of interested parties for a sale of all or part of its business, after failing to find a capital injection or new financing arrangement.
The firms shares closed yesterday at 0.32p, far below its 52-week high of 32p in March. Its shares have been in decline for several years.
The firm announced last month that it expects a loss of £9.5m to £10.5m this year. It said it remains in compliance with an existing £7.5m borrowing facility, but added that if the losses forecast for the remainder of the year materialise, this would lead to a material shortfall versus the existing covenants of its revolving credit facility (RCF) in November.
At that time it said orders were down 11% year-on-year and other indicators, such as online search activity, were down markedly despite industry statistics showing it had gained market share. The company blamed a combination of macroeconomic factors and the “hottest early September on record” for the fall in sales.
