Safestyle UK's revenues fall as it faces 'extremely difficult' trading environment

Safestyle UK, the retailer and manufacturer of PVCu replacement windows and doors, has suffered a fall in half year revenues as it faced an “extremely difficult” trading environment.
Greg Wright
By Greg Wright
Published 27th Sep 2023, 08:23 BST
Updated 27th Sep 2023, 09:28 BST

The company said its revenue for the first half of the year declined by 5.3 per cent to £74.1m as input costs continued to increase.

Commenting on the results, Rob Neale, the CEO said: "As has been widely reported, the first half of 2023 saw continued economic uncertainty and depressed consumer confidence, which resulted in another challenging period for the business.

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"I would like to thank our hard-working people for their ongoing dedication and resilience during this time.

Safestyle UK has announced its interim results for the six months ended July 2 2023. (Photo supplied by Safestyle UK)Safestyle UK has announced its interim results for the six months ended July 2 2023. (Photo supplied by Safestyle UK)
Safestyle UK has announced its interim results for the six months ended July 2 2023. (Photo supplied by Safestyle UK)

"As outlined in our most recent trading update, we have continued to work hard to mitigate these ongoing headwinds and we remain focused on delivering on our strategic efficiency and cost reduction programme that will deliver annualised reductions of c.£2.8m.

“I am pleased that we continue to grow our market share and I remain confident that the business is well-positioned to deliver a strong recovery when macro conditions improve.

"The volume of the UK's aging housing stock in need of repair remains one of the most compelling opportunities for the business in the medium-term and I believe that the progress made against our core strategic priorities will stand us in good stead as we look to the future as the UK's market leader."

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Commenting on outlook, the company said: “The trading context of the UK economy and consumer confidence remains extremely difficult. “Encouragingly, inflation is beginning to show some signs of moderating, but that follows a period of sustained high inflation. The impact of significantly higher interest rates than expected is clearly impacting consumers' disposable income.

“As reported in our trading update on September 19 2023, whilst our order intake went according to plan in early August, the period since mid-August has been challenging with independent indicators of market health, such as online search activity, showing that the current market is performing at c.24 per cent below the July and August levels of 2022. “Pleasingly, our order intake has not fallen this far, being down c.11 per cent YoY (year on year) which shows our product offering is withstanding wider market pressures better than others.

“We continue to attempt to stimulate demand and purchase intent through a combination of our online activity, the deployment of our upgraded website, discount management and our commitment to a leading consumer finance portfolio.”