Trading in shares of prominent double glazing firm Safestyle UK has been suspended amid a search for a buyer.
The Bradford-based firm is facing uncertainty after facing weaker demand during warm weather in September and having posted widened pre-tax losses of £6.7m in the first half of 2023. Investors were told earlier this month that directors are looking at a securing a sale of the business having appointed restructuring specialist Interpath Advisory.
In a new update, Safestyle, which had been running reduced shifts at its factory, said that it had become clear through negotiations with interested parties that if a deal is to be agreed and completed, it is unlikely to result in any return to shareholders. Bosses said that despite financial uncertainty, the firm still had the support of its bank, with the expectation of a positive outcome.
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In its most recent interim results published in mid-September, Safestyle said it expected year end debt to be between £5.5m and £6.5m and pointed to debt facilities of £7.5m available and a net cash position of £1.5m at the end of August. At the time, it had indicated future growth outlook was strong thanks to the UK’s ageing housing stock providing a market for window and doors upgrades.
Following those results, Safestyle’s share price continued to fall until investors were told today that the firm has requested suspension of its shares on the AIM market.
An update earlier this week said: “Based on discussions to date, the company does not expect to be in receipt of a capital injection or new financing into Safestyle. However, the directors are in active discussions with a shortlist of interested parties as part of the process. These discussions focus on a sale of some or all of the group’s business and assets (a “proposed sale”).
“The company is working with these parties towards concluding these discussions as quickly as possible. There can be no guarantee that these negotiations will result in the completion of a proposed sale, and, even if a proposed sale does complete, there can also be no certainty on the timings or level of return, if any, to shareholders.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
