Commenting on the results, Steve Birmingham, CEO of Safestyle UK plc LON:SFE said: “I am pleased to report that Safestyle UK has delivered another record performance in the first half of 2016 in which our revenue, market share and profit all increased. We have continued to build on the positive momentum generated last year and the Group’s cash conversion and balance sheet remain strong. Furthermore, we continue to execute on our strategy of increasing market share and expanding geographically, with new sales branches opened in Guildford and Norwich.
So far in H2 we have seen no change in demand which might be attributed to June’s Brexit vote. Order intake since the half year has increased on the previous year, albeit at a lower rate than in the first half due to more challenging comparatives.
We have entered the second half of 2016 in a strong position and the Board remains confident of making further progress and delivering a full year outturn in line with management expectations.”
Safestyle UK plc (AIM: SFE), the leading UK-focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, today explained to DirectorsTalk its interim results for the six months ended 30 June 2016.
Financial and Operational highlights
|
Unaudited 6 months ended 30 June 2016 £m |
Unaudited 6 months ended 30 June 2015 £m |
% change |
Revenue |
83.5 |
74.0 |
+12.8% |
Gross profit*** |
28.2 |
25.2 |
+11.9% |
Gross margin %*** |
33.7% |
34.1% |
-40bps |
EBITDA |
10.1 |
9.3 |
+8.6% |
Underlying EBITDA* |
11.1 |
9.5 |
+16.8% |
PBT |
9.5 |
8.7 |
+9.2% |
Underlying PBT** |
10.6 |
9.0 |
+17.8% |
EPS – Basic |
9.4p |
9.1p |
+3.3% |
Interim Dividend |
3.75p |
3.40p |
+10.3% |
* Underlying EBITDA is defined as earnings before interest, tax, depreciation, amortisation and share based payments charges
** Underlying PBT is defined as earnings before taxation and share based payments charges
*** Cost of sales restated to reflect lead generation costs previously stated as other operating expenses
· Volume of frames installed increased by 5.7% to 149,742 (H1 2015: 141,712)
· Continued growth in market share to 10.0% at 30 June 2016 (End 2015: 9.5%)
· Leads generated from media and on-line marketing grew by 26% to 39,118 (H1 2015: 31,095)
· Average unit sales price up 4.7% to £556 (FY 2015: £531)
· New sales offices opened in Guildford and Norwich
· Pre-tax operating cash flow of £9.8 million (2015: £8.7 million)