Shares of Safestyle UK (LSE: SFE), the AIM-listed double-glazing retailer, increased by 7% in early trade, after increasing market share, turnover and profitability in the first half of 2014.
Revenue at the Yorkshire based business grew by 10% to £69m, driven, the company says, by a combination of successful marketing efforts, significant growth in the volume of frames installed, and higher average unit prices.
The increase in revenue translated into healthy profit gains, reflecting both operational and cost efficiencies, which helped to mitigate rising glass prices. Pre-tax profit jumped 10% to £9m, with cash inflows of £8m.
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Safestyle has £11m of cash on the balance sheet, which is an increase of £6m in the period. The board declared an interim dividend of 3p per share.
The chief executive, Steve Birmingham, commented:
“We continue to pursue our strategies of expansion in the South and South East and increasing market share. We started the second half of 2014 with a strong order book and order intake to date has been as expected, and we remain on course to meet full year expectations.”
Sales in the South East were up 21% with Safestyle growing ahead of the market. Since Safestyle UK’s IPO in December the share price has risen by a quarter.
