Safestyle UK plc (LON: SFE), the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market, today issues an update on current trading.
Since the Commercial Agreement announced on 22 October 2018, the Group has experienced a significant increase in its contracted workforce across its canvass, sales, surveying and installations operations. This has resulted in an improved sales order intake that is in line with the same six week period last year.
Linked to this growth in workforce that was previously not forecast, the Group has invested more than budgeted in lead generation, commissions and associated overheads. Whilst management anticipates that turnover for the last month of the year will be ahead of that previously forecast, the majority of the benefit of this recruitment and the return on this increased investment will only occur in 2019.
As a result of the timing difference between incurring these higher costs and the installations taking place, the Board now expects that for the year ending 31 December 2018, the Group will deliver an underlying loss before tax that is between £(8.2m) and £(8.6m).
However, as a result of the aforementioned recruitment activity and associated investment in growth and notwithstanding the fact that management’s three phase turnaround plan is in its early stages against a backdrop of weaker consumer confidence, the Board is confident that the recovery and performance in 2019 will be ahead of current market expectations.