In what will be another worrying trading update issues by Safestyle UK this morning, they have confirmed that there are no new investors coming with any fresh cash to restore stability to the business.
Instead, they are now seeking a sale of the business or it’s assets as what looks like a final attempt to save the business.
New trading update
This is the statement in full, published by Safestyle UK this morning:
Safestyle UK plc (AIM: SFE.), the leading UK focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, provides an update on the process it outlined in its announcement on 10 October 2023 (the “Announcement”).
In the Announcement, the Company confirmed that it was in a process which may include a capital injection or new financing, a potential sale of the shares in the subsidiaries and/or a sale of the business and assets of the subsidiaries (the “Process”).
Based on discussions to date, the Company does not expect to be in receipt of a capital injection or new financing into Safestyle.
However, the Directors are in active discussions with a shortlist of interested parties as part of the Process. These discussions focus on a sale of some or all of the Group’s business and assets (a “Proposed Sale”). The Company is working with these parties towards concluding these discussions as quickly as possible.
There can be no guarantee that these negotiations will result in the completion of a Proposed Sale, and, even if a Proposed Sale does complete, there can also be no certainty on the timings or level of return, if any, to shareholders.
Further announcements will be made as and when appropriate.
On the news of this announcement, shares dropped dramatically once again, more than 50% and bringing the market cap value of the company well below £1m:
They warn at the end of the statement that there is no guarantees that discussions with any active parties would come to fruition, which will again sow a lot of doubt and concern as to the future of the business.
The fact that they haven’t been able to secure any new investors means that the task of finding a buyer for the business or its assets is probably going to be an uphill battle, hence the share price performance this morning.
There will now be great concern for all those who work for the business, those who supply to the business, and customers of the business who have perhaps just placed deposits or are waiting on work to be done.
You can find the original statement here: https://otp.investis.com/clients/uk/safestyle/rns/regulatory-story.aspx?newsid=1728218&cid=656
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