The share price of Safestyle UK has been in the spotlight over the last couple of weeks as the company seeks to inject new cash from additional investors to shore up the company. You can catch up on the latest news from the company here.
So I thought it might be worth taking a look at the other publicly traded companies to see how they have faired and whether it can give us an insight into the wider sector.
Spoiler alert, there is a lot of red.
We don’t have that many companies that are traded on stock markets, but the ones we do are major ones. Below are max time length charts courtesy of Google Finance which shows the historical performance of some of our biggest companies:
Image credit: Google
The obvious place to start is with Safestyle. At the time of writing their share price ended further in the red at just 1.69p per share. There is no new news yet about any new investors, and with time running out before the company exceeds it’s RCF with it’s bank, people within the company and those who supply to it are going to be getting nervous.
For me, this is something that I have warned about for a while. A volume-reliant business that makes minimal margins can be taken down by just a small drop in demand. I will explore this topic in another post as there is likely to be widespread concern within all businesses in our sector that run on a similar model.
Eurocell and Epwin join the red club with declines. You can also trace where the declines accelerated as the post-COVID boom turned into the post-COVID inflation and cost of living crisis. It’s worth noting that their business models are different to that of Safestyle, and they have a broader set of products and revenue streams which will allow the companies to hopefully be more flexible and pivot more into their growth sectors. Still, there is a rocky road ahead and they, like the rest of the sector, won’t be immune from the slowdown.
NSG, the company who bought Pilkington, have been bumping along the bottom for a while. Ever since the Japanese bought Pilkington things have been rather anaemic.
If you’re Deceuninck, this chart isn’t too shabby. Nothing spectacular, but they have managed to stay pretty much even, which compared to other companies is an achievement. They too though have suffered a protracted reduction in the value of their shares, but nothing on the scale of Safestyle or NSG.
Then there is Saint-Gobain. The biggest of the lot. A global company which encompasses their glass-making businesses. Solid, steady and no big shocks. Exactly what you want when you’re running a company of that size.
What I think we can all agree on is that we are operating in a time of change. We are seeing large, well established companies coming under pressure. New trends in materials driven by the consumer. Higher prices and labour costs that are here to stay. The market is changing very quickly and there will be winners and losers. And with the nature of communications as they are, this is going to play out in real time.
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