Bradford, UK – October 27, 2023
Trading in the shares of Safestyle UK, a prominent double glazing firm based in Bradford, has been suspended as the company faces growing uncertainty and searches for a buyer. The move comes after the company encountered weaker demand due to warm weather in September, coupled with widened pre-tax losses of £6.7 million in the first half of 2023.
Investors were informed earlier this month that directors were actively seeking a buyer for the company and had appointed restructuring specialist Interpath Advisory. Safestyle had been operating with reduced shifts at its factory, reflecting the challenging market conditions. Despite the financial uncertainty, the company reassured stakeholders that it still had the support of its bank, raising hopes for a positive outcome.
In a recent update, Safestyle revealed that negotiations with potential buyers indicated that any agreed deal was unlikely to result in a return to shareholders. The company stated that discussions were ongoing with interested parties regarding a possible sale of some or all of the group’s business and assets. However, there was no guarantee that these negotiations would lead to a completed sale, and even if they did, the timing and level of return to shareholders remained uncertain.
Safestyle’s troubles began to surface after the publication of its interim results in mid-September, where it reported expectations of year-end debt ranging between £5.5 million and £6.5 million. Despite having debt facilities of £7.5 million available and a net cash position of £1.5 million at the end of August, the company struggled to navigate the challenges posed by market dynamics and financial pressures.
The company had initially expressed optimism in its future growth outlook, citing the demand for window and door upgrades driven by the UK’s aging housing stock. However, the continued decline in its share price prompted Safestyle to request the suspension of its shares on the AIM market, leaving investors and stakeholders in a state of uncertainty.
Safestyle’s management emphasized their commitment to concluding discussions with potential buyers as swiftly as possible, acknowledging the uncertainty surrounding the outcome. The company’s fate now hangs in the balance as it navigates these challenging negotiations, leaving shareholders anxiously awaiting news of the company’s future.
For now, Safestyle UK remains in a state of flux, with stakeholders closely monitoring developments as the company strives to secure a viable solution in the midst of these challenging times.