Safestyle UK PLC (LON:SFE) said it expects to achieve the best quarterly profits since 2017 this year despite the initial disruption, with full-year results to “significantly” top market estimates.
The retailer and manufacturer of PVCu replacement windows and doors said it will revisit its dividend policy later in 2021 assuming that it has returned to consistent delivery of profitability.
In-home selling and canvass operations were halted at the start of 2021 but restrictions have now eased and the firm is seeing a good recovery of sales momentum from 2020.
Revenue has grown by double digits in the first quarter and levels of profitability have increased compared to the 2020 exit rate.
The order book continues to remain ahead of the prior year although it has been run down in the first quarter and converted into profit and cash.
The UK Government has set out its roadmap out of lockdown and, based on this plan, the board expects there to be no further significant interruption to operations.
It also forecast good levels of demand for its products now that restrictions on sales activities have been lifted.
In the year to December 31, revenue slipped 10% to £113mln while loss before tax widened 61% to £6mln. Net cash at year-end was £7.6mln.
Analysts at house broker Liberum upgraded the 2021 profit before tax estimates to £6mln from £4mln as it sees "significant recovery prospects".
Shares advanced 4% to 50.99p on Thursday morning.