Safestyle UK shares rose on Monday morning after the company announced it had entered into a commercial agreement with co-founder Mitu Misra.
The company said in a statement on Monday that it had entered a five-year non-compete Misra, who was a party to the firm’s dispute involving Niamac Developments Ltd, trading as Safesglaze.
As part of the agreement, Mr Misra will receive 4 million ordinary shares of 1 pence, alongside a potential cash payment of £2 million.
The company confirmed that the allotment of the shares and and payment of the sum, would be made in the fourth quarter of 2020.
Mike Gallacher, Chief Executive of Safestyle UK plc, commented:
“The three phase turnaround plan that was outlined in our Interim Results is underway and is already helping to stabilise the Group before returning it to profitability and then accelerating growth. The focus of the whole Group remains on delivering this plan quickly and effectively.”
Shares in the company rallied earlier this month after it announced it was considering “certain agreements” with shareholders of NIAMAC Developments Ltd, which would provide a boost the business.
Nevertheless, the firm denied speculation of a takeover approach, after shares bounced more than 12%.
Safestyle UK specialises in providing double glazed windows, French doors and conservatories.
The firm was founded back in 1992 and is headquartered in Bradford, UK.
Back in 2003, the company was floated on the AIM-market of the London Stock Exchange, valuing the company at £70 million.
Shares in Safestyle UK (LON:SFE) are currently trading +30.92 % as of 12.31PM (GMT).
Elsewhere in the markets, shares in Ryanair (LON:RYA) ticked up on Monday morning, despite the low-cost airline posting a fall in profits for the year.
In the retail sector, Dr. Martens said earnings grew 33% to £50m in the year to March.
