Safestyle wins first round of court battle

The two firms, both based in Bradford, have become arch enemies since Safestyle accused its rival of ​“​passing off, the misuse of confidential information, unlawful means conspiracy and malicious falsehood​“.

At the hearing, the Court made a number of orders against SafeGlaze and some named individuals.

The orders have been made on an interim basis. They include a number of injunctive orders preventing SafeGlaze and certain named individuals from undertaking various actions, and an order requiring them to provide specified documents to Safestyle.

Safestyle said it could not comment further because the written order has yet to be handed down by the Court.

A further hearing will be heard ​in early July.

Safestyle also announced the resignation of chairman Peter Richardson with immediate effect.

Mr Richardson assumed the role of chair at short notice, but the firm said it has become clear that the specific challenges currently facing the business and the time commitment required are beyond what he envisaged.

The board is looking for a replacement chairman who will have the requisite time, experience and turnaround skills.

Chris Davies, senior non-executive director and former CEO of SIG, will lead the search process for a successor.

Mr Davies said: “I would like to take this opportunity, on behalf of the board, to thank Peter for his time and efforts since joining Safestyle in July 2016.

"Peter recently stepped into the chairman role at short notice and has devoted a significant amount of time to support the business. He made a strong contribution to the board during what has been a challenging time and we wish him luck in his future endeavours.

“We are pleased with the outcome of the hearing and, although we are disappointed to see Peter go, the board now has the opportunity to appoint a chairman with the requisite time, experience and turnaround skills at what is a timely juncture.

"The incoming chairman will, amongst other responsibilities, lead the process of reinforcing the board with a new contingent of non-executive directors to complement existing skill sets.”

Analyst Charlie Campbell at Liberum said: "Safestyle has announced that it has seen some early success in its legal claim against SafeGlaze, with the Court issuing injunctive orders against SafeGlaze and individuals at a hearing last Friday.

"Disappointingly, the chairman Peter Richardson is resigning, but new CEO, Mike Gallacher, has previous experience of intellectual property litigation and has the track record to suggest that he could lead a successful recovery.

"The shares remain depressed, on only three times peak earnings, with a strong balance sheet. We upgrade our target price from 50p to 60p to unwind some excessive caution when it was set."