Safestyle UK Plc (LON:SFE) the leading UK-focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, is the topic of conversation when DirectorsTalk caught up with Andy Hanson Equity research director at Zeus Capital. Andy talks through the interim results, how the business is performing in it’s market and how this compares to the competition.
Andy Hanson is an experienced Equity Analyst and Fund Manager, joining Zeus Capital in May 2013 as an Equity Analyst covering support services and special situations. After gaining a postgraduate degree in finance, he joined a leading pan-European long short equity hedge fund. After six years investing in large cap European equities, Andy went on to manage a small and mid cap Global Growth Fund.
Andy said, “Safestyle UK Plc has announced another set of strong results with revenue growth of 12.8% to £83.5m (HY15: £74.0m) and underlying PBT of £10.6m (HY15: £9.0m) a 17.8% YoY increase. Operationally the business has progressed on all fronts with growth in installed frames, number of installations and average unit price. The conservatory refurbishment business is gaining scale and is on track to achieve its annual target, the structural change towards on-line derived sales continues and the production facility extension is on plan. We leave profit forecasts unchanged in expectation of slightly slower revenue growth in H2, albeit still c. 9%, against tough comparatives and expectations of further cost pressures to come through, particularly in Q4. The FY dividend estimate increases 5.6% to mirror the 10.3% YoY uplift at the interims. Safestyle’s trades on a PER of 13.4x underpinned by structural growth and yields 4.3% with the potential for further special dividends.”
