Safestyle UK warns of annual loss amid weak demand, higher costs
StockMarketWire.com - Replacement windows and doors supplier Safestyle UK said it expected to reported a small underlying loss for the full-year, with revenue falling short of market expectations.
Order intake hadn't improved as much as expected, amid weaker consumer spending and the loss of staff to a new competitor, the company said.
'Whilst pricing has been firm, with recent price increases being successfully implemented, gross margins in the current year have been impacted through higher digital marketing costs and sales commissions,' it added.
Safestyle said it had also incurred higher recruitment and staffing costs while it improved customer service levels.
It expected to report non-recurring exceptional cash costs of around £6m, including, amongst other items, a previously-announced fine following a health and safety executive investigation, legal costs and restructuring costs.
'The business has put in place suitable borrowing facilities to ensure that it has access to appropriate funding, should it be needed, to cover these changed circumstances and any other contingency.'
At 9:45am: (LON:SFE) Safestyle UK PLC share price was -9.2p at 40.5p
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