Weaker trading at Safestyle after a sizeable slowdown in the glazing market

REPLACEMENT WINDOW and door firm Safestyle UK said that recent trading has been weaker than expected following a significant slowdown in the market.

The Bradford-based firm said it expects first half profits will be down on last year but it expects to see an improvement in the second half and full-year results should be in line with market expectations.

The group’s chairman Steve Halbert told shareholders at the firm’s annual general meeting: “2017 started positively with robust order intake in the first quarter, however recent trading has been weaker than expected reflecting the latest FENSA statistics which have shown a significant contraction in the overall market in the first quarter of 2017.

“As a result, compared with an exceptionally strong equivalent trading period last year, the group has seen more modest overall growth of 2 per cent in order intake for the first four months of 2017.”

He said first half profits will be hit by a combination of lower than planned volumes and some parallel running costs following investment in new production facilities. “We have a number of initiatives underway and combined with the impact of enhanced production productivity, expect an improved performance in the second half of the financial year,” he told shareholders.

“The group continues to gain market share and to build its order book during the first half.

“While we are currently operating in a more challenging trading environment, the group’s balance sheet and cash generation remain strong and the board is confident of delivering full year results broadly in line with market expectations.”

Analysts at Liberum said in a note: “In spite of a slow start to 2017, Safestyle’s management is confident of hitting market expectations as self-help initiatives boost gross margin and control overheads.”