Safestyle share up, turnaround
30th July 2019
Safestyle UK says is it still progressing on its long-term recovery plan, with a half year trading update recording market share up nearly 20% over the previous half despite making a ‘small loss’ in H1.
The group says since its last statement read story: “management has continued to make progress on Phase Two of its Turnaround Plan which is focused on recovering volumes and market share, restoring operational effectiveness, reducing costs and enhancing margins.
“As expected, the first half of the year will result in a small loss, but despite a challenging market where consumer demand appears soft, the Group remains on track to deliver a small profit for the full year which is in line with current market expectations.”
The group continued to rebuild its order book, it says, and as a result, revenues for the period will be c.£64.4m, 6.4% higher than H1 2018 with May and June being c.15% higher than the same months in 2018.
Its half-year market share is down 16.5% on H1 2018 and 19% on H1 this year, against a Fensa half year installation statistic showing a year on year market decline of 8.2%.
It continues to improve its margins and operational KPIs versus the prior year, the report continues, and has delivered good progress during H1. During 2018, its cost base grew and it has now taken actions to recover its earlier, more competitive cost base.
CEO Mike Gallacher said: "The first half of 2019 has seen significant progress delivered against Phase Two of our Turnaround Plan and we continue to focus on accelerating the Company's operational recovery, controlling costs and improving margins. This work has been enabled by enhanced financial transparency and performance metrics as a result of our 2018 digital project.
"Our focus in H2 will be to continue to establish the foundations for sustained growth in 2020 as we move into Phase Three of our Plan."