Shares in Safestyle UK, a door-and-window manufacturer, tumbled as the company adjusted its full-year guidance due to weaker demand. The company now anticipates incurring a wider underlying loss instead of turning a profit.
Share Price Decline
At 0806 GMT, Safestyle UK shares were down 41% or 3.4 pence, reaching 4.9 pence.
Safestyle UK revealed that its order intake from mid-August to early September fell short of expectations despite the support of mitigation measures. Although performance remains superior to the wider market's slump of 24% below 2022 levels for July and August, the company's current order intake is down by 11% compared to the previous year.
Revised Revenue and Loss Estimates
For 2023, Safestyle UK now foresees its revenue to amount to GBP140 million - GBP142 million ($173.4 million - $175.9 million), contrasting with GBP154.3 million in 2022. The underlying loss is expected to range from GBP9.5 million to GBP10.5 million, a significant increase from the previous year's loss of GBP4.4 million.
Safestyle UK has implemented several measures to counterbalance the weakened demand, including reducing employee shifts and implementing voluntary pay and fee waivers for management. However, these actions alone will not fully alleviate the short-term drop in demand.
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