Double-glazing windows and doors firm Safestyle has warned profits and revenues for 2018 are likely to come in significantly below estimates and has cancelled its final dividend as a result, sending its shares down by a fifth.
The Bradford-based company said trading had been difficult due to a mix of declining consumer confidence and tough competition from an ‘aggressive new market entrant’.
‘The board now expects group revenues and underlying profit before tax for the year ending 31 December 2018 to be significantly below current market expectations with profits for the year expected to be heavily weighted to the second half,’ the firm said in a trading update.
Profit warning: The Bradford-based company said trading had been difficult
It added that orders in the year so far had been weak and that it was cancelling the recommended final dividend of 7.5 pence per share to preserve cash.
Shares in Safestyle fell by 19.4 per cent, or 15.53p, to 64.47p in morning trading.
The firm also announced the immediate departure of its chairman, Steve Halbert, who has been replaced by Peter Richardson, an existing non-executive director at Safestyle.
Richardson said: ‘I am now looking forward to working with the board and the executive team during what is a challenging period for the group as it undertakes a number of actions to emerge as a stronger, fitter, more agile business.’
Last year, the company cited figures from repair, maintenance and improvement industry body Fensa, which showed overall market installations had dropped 18% throughout June and July compared with 2016.