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Safestyle losses widen amid Covid-19 pandemic
25th Mar 2021 09:03
(Sharecast News) - Double glazing firm Safestyle said on Thursday that pre-tax losses had widened in the twelve months ended 3 January but the group stated that it was on track for a solid recovery in 2021.
Safestyle posted a pre-tax loss of £6.2m, a significant widening when compared to the £3.8m loss recorded in 2019, while revenue was down 10% year-on-year at £113.2m as the group was forced to close operations following the outbreak of the Covid-19 pandemic.
Basic losses per share expanded to 4.3p for the year, compared to 4.0p a year earlier.
However, Safestyle also said it had achieved an underlying pre-tax profit of £300,000 in the second half of 2020 on the back of investments aimed at growing the firm's order book, currently up 83% year-on-year, while the receipt of £1.8m from Downing Street's Coronavirus Job Retention Scheme also helped partly reduce the first-half loss.
Chief executive Mike Gallacher said: "Having taken decisive action to support the business during the period, we saw a strong recovery in the second half of the year with good order intake growth and a step up in operational capacity, as customer demand remained robust. By the end of 2020, our order book was 83% larger than 2019's closing position, which has given us a strong platform to maintain momentum at the beginning of the current financial year in spite of the external disruption.
"Notwithstanding the uncertain operating environment, as a result of the strategic and operational progress we have made along with our strong order book, cash position and market-leading brand, the board now expects the group's 2021 financial performance to be significantly ahead of market expectations."
As of 1450 GMT, Safestyle shares were up 5.20% at 51.60p.
Safestyle posted a pre-tax loss of £6.2m, a significant widening when compared to the £3.8m loss recorded in 2019, while revenue was down 10% year-on-year at £113.2m as the group was forced to close operations following the outbreak of the Covid-19 pandemic.
Basic losses per share expanded to 4.3p for the year, compared to 4.0p a year earlier.
However, Safestyle also said it had achieved an underlying pre-tax profit of £300,000 in the second half of 2020 on the back of investments aimed at growing the firm's order book, currently up 83% year-on-year, while the receipt of £1.8m from Downing Street's Coronavirus Job Retention Scheme also helped partly reduce the first-half loss.
Chief executive Mike Gallacher said: "Having taken decisive action to support the business during the period, we saw a strong recovery in the second half of the year with good order intake growth and a step up in operational capacity, as customer demand remained robust. By the end of 2020, our order book was 83% larger than 2019's closing position, which has given us a strong platform to maintain momentum at the beginning of the current financial year in spite of the external disruption.
"Notwithstanding the uncertain operating environment, as a result of the strategic and operational progress we have made along with our strong order book, cash position and market-leading brand, the board now expects the group's 2021 financial performance to be significantly ahead of market expectations."
As of 1450 GMT, Safestyle shares were up 5.20% at 51.60p.