Safestyle UK PLC (AIM:SFE) shares slammed 22.6% lower after the PVC window maker warned on profits due to lower sales and higher costs, even though orders have since bounced back.
There will be a “significant” impact on full-year profitability, the AIM-listed company said, though the order book for the new year will be significantly ahead of internal expectations.
Revenue from late September through to the end of October was down 2.7% on the same period last year and 8% lower than expected, while costs of acquisition were also higher.
Directors attributed this to consumer confidence being hit by the political and economic drama around Liz Truss's short time as Prime Minister.
However, orders in the first three weeks of November bounced 30%, with costs of lead generational also returning to normal.
Despite this, window frame installation volumes will be around 5k lower for the year, while the recently improved order intake has come too late to remedy this.
On the November bounce, analyst Clyde Lewis at Peel Hunt said: “Definitely some catch-up after an uncertain September/October, but maybe also highlighting that consumers are still happy to spend cash where they have it.”
The news also held “clear read-across” for shares in other repair, maintenance and improvement (RMI) companies, added the analyst.