For over 20 years, Safestyle has been producing high-quality, affordable double-glazed windows and doors for homes across Britain. Having started with capital of just £2,000 in 1992, a passion for double glazing and a commitment to delivering quality windows and doors and first-rate service has seen us go from strength to strength; we are now an industry leader with 29 branches and 10 installation depots across England and Wales, and install windows and doors worth over £100 million on domestic properties each year.

http://www.safestyle-windows.co.uk/

ST of IC today - Shares in Aim-traded Safestyle



(SFE: 165p) are down slightly cent since I last updated the investment case (‘Exploit an open buying opportunity’, 22 September 2014), even though the company has delivered on analyst earnings estimates. A pre-close trading update ahead of results on 26 March 2015 confirmed that adjusted pre-tax profits are set to grow from £15m in fiscal 2013 to £16.7m last year. On this basis, expect EPS of around 15.3p to 16p, up from 13.6p in 2013. And with cash generation strong – the company ended the year with net cash of £8.5m, up £3.3m on 12 months earlier despite paying out dividends of £6.7m to shareholders in the second half of 2014 – then expect a full-year payout of around 9.3p a share. This means Safestyle’s shares are currently valued on a modest 10 times earnings and offer a dividend yield of 5.6 per cent.

Based on a rise in revenue from £135m to £143m in the current financial year, analyst Matthew McEachran at broking house N+1 Singer predicts that Safestyle should be able to lift pre-tax profits to £18.1m and deliver EPS of 16.7p. That’s below consensus EPS of 18p, but there should be scope for upgrades. Mr McEachran notes that “the risk is to the upside” and I would agree as Safestyle continues to grow market share – up from 7.85 per cent to 8.48 per cent in 2014 – but N+1 Singer are conservatively only factoring in a further 10 basis points increase in market share this year. Moreover, uPVC input prices will have benefited from the sharp fall in the oil price which will benefit gross margins. Safestyle also increased unit prices last month, and it’s reasonable to expect these to hold in an increasingly favourable environment for consumer spending.

Investors also seem to be missing the point that with cash generation robust, there is scope for Safetsyle to announce a special dividend. In fact, analyst Adam Smith at brokerage Charles Stanley believes that “looking further ahead we believe there is the potential for a special dividend of between 10p-15p a share without putting undue pressure on the balance sheet”. Mr McEachran at N+1 Singer notes that with “cash generation strong at the very least a higher payout will be needed to return surplus cash”.

In the circumstances, I feel that N+1 Singer’s forecast for a raised payout of 9.6p a share this year could prove too conservative especially as the £7.5m cash cost of the payout represents only 40 per cent of forecast operating cashflow of £18.9m. By my calculations, by the end of this year the company’s net cash pile could easily rise to £15m, or 19p a share, giving the board the opportunity to raise the normal payout or declare a special dividend. Director Christopher Davies and his wife Carol are clearly upbeat on Safestyle’s prospects, having purchased 45,000 shares at a cost of £77,690 at prices between 166p to 178p in the past couple of months. I am too and remain a buyer of the shares on a bid-offer spread of 163p to 165p ahead of next month’s full-year results.

Final results


Operational Highlights

· Leads generated from media and internet marketing grown by 10.9% to 52,842 (2013: 47,660)

· A record 57,682 installations with volume of frames installed increased by 7.0% to 267,642 (2013: 250,185)

· Average unit sales price up 1.6% to £504 (2013: £496)

· Average order value up 3.8% to £2,806 (2013: £2,704)

· Growth in market share to 8.48% at 31 December 2014 from 7.85% at prior year end

· 10th consecutive year of market share growth
//////////////////////////////////////////////////////////////////////////////////////////////////


26 Mar N+1 Singer 230.00 Buy

ST of IC today - My fair value target price of 230p is the equivalent of 12 times fiscal 2015 earnings estimates, adjusted for a year-end projected cash pile of £17.2m, worth 22p a share.

AGM Statement
RNS
RNS Number : 8537N
Safestyle UK PLC
21 May 2015



21 May 2015

Safestyle UK PLC



("Safestyle" or the "Group")



AGM Statement



Steve Halbert, Chairman of Safestyle UK plc, the leading UK focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner replacement market, will make the following statement at today's Annual General meeting in respect of current trading.



"The Group's new financial year has begun positively and the Company is trading in line with management expectations. Order intake for the first four months of the year shows growth of 2.7% compared with very strong 2014 comparatives, which is encouraging.



"Our sales price increase introduced in January 2015 is helping to absorb the full year impact of cost increases, primarily related to glass prices as well as increased regulatory requirements. With positive momentum in our order intake, strong brand awareness as well as continued opportunities to increase our geographic penetration, the Board is confident that the Company will deliver growth in revenue and profit in 2015."

ST of IC today - I certainly would not rule out upgrades when Safestyle reports its half-year results in September.

Other investors are clearly thinking the same way, which explains why Safestyle's shares are on the verge of taking out the all-time high around 220p, a price level that capped progress in April last year and has acted as a glass ceiling this month. A break-out above this price point into blue sky territory would be significant and could see the share price easily rally through my 230p target price. With the 14-day relative strength indicator (RSI) in the mid-60s, then the current reading is well off the 80 overbought level, which marked the share price top in April last year.

Half Year Trading Update
RNS
RNS Number : 1824T
Safestyle UK PLC
16 July 2015



16 July 2015

Safestyle UK plc



("Safestyle" or the "Company")



Half Year Trading Update



Safestyle UK plc (AIM: SFE), the leading UK-focused retailer and manufacturer of PVCu windows and doors for the homeowner replacement market, today issues a trading update for the six months ended 30 June 2015, in advance of its half year results announcement scheduled for Thursday 17 September 2015.



The Company has continued to trade well, with revenue for the first half of the year expected to be £74.0 million, an increase of 6.8% on the previous year (H1 2014: £69.2 million). This is pleasing progress against a particularly strong Q1 2014, reflecting further growth in market share and the price increases introduced in January 2015. We expect a continuing strong sales performance in the second half of the year and remain confident of achieving full year results in line with board expectations.



Recent order intake has been encouraging. Order intake grew by 7.1% in the first half of the year, compared with FENSA statistics (which relate to orders fitted) which show that the market contracted in the same period by 10.1%. This reported contraction is surprising and one which we will continue to monitor carefully. As a result, the Company's market share stands at a record 9.5% for the first half of the year.



Cash flow has continued to be strong and we had net cash of £14.9 million at 30 June 2015 (30 June 2014: £10.8m).



We are pleased with progress in the first half and our growth in order intake has been reinforced with our recently launched low cost, long term and promotional finance propositions. Early evidence from our conservatory refurbishment launch on 1 April 2015 is encouraging and we will be able to provide a further update at the Company's half year results in September.



Steve Birmingham, CEO of Safestyle UK, commented:



"Trading in the first half has been good, showing growth against a very robust comparable period in 2014, especially the first quarter. With our strong order intake and growth in market share, we are well placed to continue our recent progress and we look forward to the second half with confidence."



-Ends-

Director Dealing
RNS
RNS Number : 4282T
Safestyle UK PLC
17 July 2015



Safestyle UK plc



("Safestyle", the "Group", or the "Company")



Director Dealing



Safestyle UK plc (AIM: SFE), the leading UK-focused retailer and manufacturer of PVCu windows and doors for the homeowner replacement market, has today been informed of the following dealings in the Company's shares:

Mr. Stephen Birmingham, Chief Executive Officer of Safestyle, today purchased 5,000 shares at a price of 236.225 pence per share.

Following this transaction Stephen will have an interest in 3,893,889 shares in the Company, representing 5% of the total issued share capital.

Safestyle UK featured in our weekly round-up of announcements from AIM, see more at http://www.investorschampion.com/blog/

ST of IC today -

Catalyst for a re-rating

In my opinion, the next leg up in the share price is likely to be driven by the half year results on Thursday, 17 September and not only because of the ongoing strong operational performance. I would not be surprised at all to see the company return more of its growing cash pile back to shareholders too

Safestyle UK PLC (SFE:LSE) set a new 52-week high during today's trading session when it reached 250.00. Over this period, the share price is up 40.25%.

Interim results

01 Oct 2015 Safestyle UK PLC (3.4 P) Ex dividend

ST of IC today - Add to that the scope for further earnings upgrades given the easy comparables in the fourth quarter this year and my advice is to run your bumper profits with Safestyle’s shares trading on a bid-offer spread of 253p to 255p.

2 Nov Liberum Capital 280.00 Buy

Director Deals - Safestyle UK PLC (SFE)
BFN
Stephen Birmingham, Chief Executive Officer, bought 40,000 shares in the company on the 9th November 2015 at a price of 218.20p. The Director now holds 3,933,889 shares.

Story provided by StockMarketWire.com
Director deals data provided by www.directorsholdings.com

9 Dec Liberum Capital 280.00 Buy

Safestyle UK PLC (SFE:LSE) set a new 52-week high during today's trading session when it reached 275.00. Over this period, the share price is up 62.20%.

ST of IC today - Furthermore, I wouldn’t discount the possibility of Safestyle posting an earnings beat in a few weeks time given the weak comparatives and conservative analysts’ estimates. I wouldn’t rule out either an earnings accretive share buy-back programme, tender offer or even a special dividend to shareholders as the company could easily pay out half its current pile. My advice is simple: run your bumper profits.

Year End Trading Update
RNS
RNS Number : 7958M
Safestyle UK PLC
25 January 2016

25 January 2016



Safestyle UK plc



("Safestyle" or the "Company")



Year End Trading Update



Safestyle UK plc (AIM: SFE), the leading UK-focused retailer and manufacturer of PVCu windows and doors for the homeowner replacement market, is pleased to provide a trading update for the year ended 31 December 2015.



The Company has continued to trade well, with revenue for the year increasing 9.5% to approximately £148.9 million (2014: £136.0 million). In addition, profit before tax has shown good progress and is anticipated to be in line with consensus market expectations¹. The expected strong performance in the second half saw double digit growth in both sales and profit.



Against the backdrop of a weaker market in 2015, the successful rollout of our enhanced consumer finance offer helped to drive growth in the year, particularly in the second half. As expected, operating margins will show some decline in the second half as a result of the additional subsidy costs related to this offer. The Company has continued to increase market share from 8.48% as at 31 December 2014 to 9.46%2 as at 31 December 2015, according to FENSA data. That data shows an overall market contraction for 2015 of 6.6%.



Our growth is also reflected in the increase in frames manufactured during the year, up 4.4% to 279,453 (2014: 267,642 frames), whilst the number of installations increased 4.3% to 60,134 (2014: 57,682). The order book at the year-end was 1.2% up on prior year.



Cash flow has continued to be strong and we ended the year with cash of £16.5 million (31 December 2014: £8.5million).



The Company intends to announce its audited results for the year ended 31 December 2015 on 17 March 2016.



Steve Birmingham, CEO of Safestyle UK, commented: "I am pleased to report that trading over the year has been robust. We have continued to heavily outperform the market, thanks to the quality of our product range, the attractiveness of our finance offer and the effectiveness of our sales and marketing efforts. We have seen a strong start to 2016 and are confident of building on the progress made in 2015."





¹.Consensus market expectations for FY2015 profit before tax is £17.6 million (2014: £16.4 million) after charging share based payments of £0.4 million (2014: £0.4 million)

2.Based on revised FENSA installations Safestyle's amended market share for H1 was 9.38%







-Ends