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Safestyle shares surge on strong trading

Safestyle shares (LON: SFE) surged almost 16% on Thursday as the group reported strong order intake growth and increased operational capacity.

The group delivered 9% year on year revenue growth in Q3 and is expected to deliver c.20% revenue growth for Q4. Looking into next year, Safestyle remains confident and said they plan to “enter 2021 with its strongest ever installation pipeline at this stage of the year, providing a solid platform to maintain its current trading momentum whilst at the same time providing some insulation against the potential impact of disruption to future sales activities from further lockdowns.”

The fourth quarter is on track deliver their strongest financial result for any quarter since 2017. Full year revenue is expected to be over £113m, with an underlying loss before taxation of approximately £4.5m – with any losses attributed to the first lockdown.

Mike Gallacher, the chief executive of Safestyle, commented: “Despite the unprecedented challenges faced by the Group during the year, I am pleased with the recent tangible progress we have made in stepping up our operational capacity and delivering strong revenue growth, whilst further strengthening our order book. Moreover, we have also made good progress on our longer-term strategic priorities. Notwithstanding the uncertainty associated with the current economic backdrop, the Group is well positioned to build on this positive momentum going into 2021.”

In September, shares in the group fell after the group revealed pre-tax loss of £5m in the six months to June 30. The group said that revenue and profitability between March and May had fallen as a result of the pandemic and having to cease trading.

The group expects next year’s market to be ahead of expectations. Shares (LON: SFE) are trading +15.76% at 42.60 (1200GMT). In the year to date, shares are down from previous highs of 43.42.

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