MARKET REPORT: Door and window-maker Safestyle crashes after profit shock

Safestyle lost nearly half its value as it warned that results will be worse than feared amid a slump in demand.

Britain’s biggest maker and seller of doors and windows, which has installed frames and conservatories in England and Wales for more than three decades, usually expects its sales to surge from mid-August as customers prepare their homes for the colder months.

But its most important trading period of the year has been weaker than expected, with orders down around 11 per cent year-on-year.

Safestyle said volumes have fallen across the industry due to the tough economic conditions and a slowdown in the housing market. 

The group has aimed to make savings by cutting shifts in its factory alongside allowing board members to voluntarily waive their pay.

Slump: Door and window maker Safestyle said volumes have fallen across the industry due to the tough economic conditions and a slowdown in the housing market

But it warned this will not be enough to offset the short-term slump in demand.

As a result, Safestyle said it is now likely to make between £140million and £142million of revenue this year alongside a loss of £9.5million to £10.5million. 

That would less than the £154.3million of revenue it made the year before and more than the £4.4million loss recorded in 2022. Shares crashed 47 per cent, or 3.9p, to 4.4p, taking losses for the year to over 80 per cent.

The London stock market brushed aside several gloomy updates with the FTSE 100 barely shifting, edging up 0.1 per cent, or 7.26 points, to 7660.2. The FTSE 250 inched down 0.1 per cent, or 22.57 points, to 18426.7.

C&C Group, the drinks company behind Tennent’s, Magners and Bulmers, made gains as sales in its branded divisions rose and progress was made in resolving the botched software upgrade which affected its British distribution business earlier this year.

Its profit for the six months to the end of August is likely to come in between £25million and £27million.

Given it had already flagged that the software issue would result in a one-off hit to profits of around £22million for the 12 months to the end of February 2024, investors appeared pleased that trading was roughly in line with the previous year. Shares added 5.5 per cent, or 7.2p, to 139.2p.

Stock Watch – Northcoders

Northcoders shares plunged to a record low after the tech training provider warned corporate clients have cut spending.

It was the group’s worst day since it floated two years ago.

It said companies are spending less on its bootcamps due to budget constraints and staff cuts. As a result, revenue and profits for 2023 are expected to be ‘significantly below current expectations’.

Shares, which floated at 180p in July 2021, tumbled 32.5 per cent, or 62.5p, to 130p.

But Naked Wines left a sour taste as the online alcohol seller warned the past year has been one of the most volatile in its history. 

A cocktail of economic woes – from soaring inflation to higher taxes on alcohol and falling discretionary spending – saw sales fall 8 per cent to £354million in the 53 weeks to April 3. 

Naked Wines added that it has too much stock and struggled to get new customers to spend more on their wine.

In a further blow, revenues in the first quarter of its new financial year fell 18 per cent as sales to new and existing customers tumbled. 

As a result, its annual revenue is expected to decrease between 8 per cent and 12 per cent. Shares slumped 11.1 per cent, or 7.8p, to 62.2p.

It has been steady as she goes for Moonpig since its financial year started in May, leading the ecard and gift retailer to say revenue should increase by around 3 per cent in the first half and at least 5 per cent for the full year. 

Shares rose 0.4 per cent, or 0.7p, to 164.9p.

British Land expects rent at its retail parks to increase between 3 per cent and 5 per cent for the year to end of March 2024 – up from a previous forecast of 2 per cent and 4 per cent – following strong demand amid limited supply. Shares in the property developer rose 0.3 per cent, or 0.9p, to 309.1p.

Quiz said sales in the first five months of the financial year, which started in April, are down 15 per cent to £37million with both in-store and online shopping tumbling.

The fashion retailer warned that if this trend continues, it could post a loss of as much as £1.5million for the year, having profits of £2.3million last year. 

Shares slumped 31.4 per cent, or 2.78p, to 6.05p.

This post first appeared on Dailymail.co.uk