Safestyle have released their H1 figures for 2020, and just like all the others which have reported so far, the first half of the year shows a huge dent to revenues and profits.
Major drop, but growth rebounding
Here are the financial headline highlights from H1 for the business:
Credit: Safestyle UK
Revenues have fallen by over £22m. Profit is down, margins are down. All of this is inline with what we have seen with other major fenestration businesses that have been reporting their financial results.
However, as you’ll see from the reporting below, the company has experienced a strong rebound since reopening:
“Not clear if performance is sustainable”
This was the comment made by CEO Mike Gallacher:
The first half of 2020 presented some major management and operational challenges which were successfully navigated with strong support from our shareholders, effective Government intervention and the efforts of all of our staff. Clearly their health and safety, along with that of our customers, was our priority during the lockdown period.
Since we re-emerged from lockdown, our strong order intake performance has been sustained and we have moved to ramp up operational capacity to match this demand. We have experienced some operational challenges linked to recovering the backlog of warranty work from the lockdown, our growth and recent supplier performance. We are focused on ensuring that the impact of these issues on our good customer service levels is addressed promptly.
Concurrently, despite the challenges in the first half of 2020 our team have been able to make tangible progress on our longer-term strategic priorities. This includes modernising our brand, professionalising our sales force and embedding best practice compliance processes.
It is not yet clear if the recent strong trading performance is sustainable in light of the current economic environment and any uncertainty is likely to impact consumer confidence. However our strong order book, our position as a leading national value brand and the progress made on modernising the business leaves us well positioned to sustain our momentum as we move into 2021.
As with much of the rest of the sector, the company is reporting a strong bounceback as they reopened in May and strong sales at the start of H2. However, he rightly recognises that uncertainty remains high. More so now as the Government talks about a second wave of the virus and impending widespread and far-reaching restrictions. Add to that what looks set to be a messy Brexit and a public that seems increasingly frustrated with COVID restrictions it does seem like there is a bumpy road ahead as we head into Autumn and Winter.
However, fuller order books should ensure a fairly stable cash stream in the short term. What happens in the next few weeks and months is anyone’s guess at this point.
To get weekly updates from DGB sent to your inbox, enter your email address in the space below to subscribe:
By subscribing you agree to DGB sending you weekly email updates with all published content on this website, as well as any major updates to the services being run on DGB. Your data is never passed on to third parties or used by external advertising companies. Your data is protected and stored on secure servers run by Fivenines UK Ltd.