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Manufacturing & engineering

Safestyle UK shares crash to all-time low after another profit warning

Safestyle UK PLC (AIM:SFE) shares crashed 43% to an all-time low after the double glazing company issued its third profit warning this year and its fifth in 12 months.

There was good news, however, as it returned to profitability in the first half of the year despite challenging conditions.

Less than two months after its last profit warning, the company said order intake went "according to plan" in early August, but since the middle of that month it has been behind forecasts, though online search activity indicates its 11% decline is not as bad as the wider market.

Both wet and warm weather, along with macroeconomic factors, were seen as potential factors to blame.

Despite efforts to boost demand, revenue for the full year is now expected to be £140-142 million, with expected losses of £9.5-10.5 million.

The board intends to "engage with shareholders" - suggesting a fundraising might be near - as net debt is expected to be between £5.5 million and £6.5 million, with current debt facilities of £7.5 million and a net cash position of £1.5 million at the end of August.

Almost a year ago, the company reported a swing to losses and a cut to full-year profit guidance after a cyberattack combined with soaring raw materials costs.

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