Safestyle UK PLC (LON:SFE) announced it has been building significant buffer stocks of window profiles as one of its key suppliers sold off assets.
Safestyle, which makes windows and doors, said it has taken the action to ensure it has sufficient stock in place to mitigate the impact of a forced change atbDuraflex, its PVCu profile supplier.
UK Window Group, the parent company of Duraflex, announced on Thursday it had sold off some of its assets as part of a restructuring programme to improve its financial position.
AIM-listed Safestyle does not anticipate any major interruption to its supply of PVCu profiles.
Supply chains generally remain stretched by recent good levels of demand in the industry, it said, but these challenges will be manageable over the coming months.
Analysts at Liberum noted the announcement was made to clarify a situation that might have been perceived negatively.
Shares slipped 6% to 44.64p on Friday at the opening bell.