Safestyle is on course for expansion in the south east

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Double glazing firm Safestyle UK reported record profits and said it is on course for growth this year as it expands into the south and south east.

In its first set of results since floating in December, the Bradford-based firm said underlying pre-tax profits rose 58 per cent to £15m in the year to December 31.

The company said it is well placed as the general economy and the home improvement market recover.

Chief executive Steve Birmingham said order intake in the first two months of 2014 was strong and the firm is confident about the future.

“Order intake was up over 10 per cent on last year in January and February,” he said.

“It’s been an excellent year for us. It’s been a combination of a very strong offer that’s very competitive and returning consumer confidence.”

He added that rising energy prices have made people more aware of the cost savings they can make when they install double glazed windows and doors.

“Over the ten year guarantee period the average customer could save what they’ve invested. The typical customer can cut their bills by 10 to 20 per cent,” he said.

The group’s market share rose from 7.49 per cent to 7.85 per cent last year.

Revenue rose 13 per cent to £124.8m and the group installed 250,185 frames in 2014, up 7.5 per cent on the previous year.

Following £2.4m of costs for the IPO last December and a historic tax settlement of £2.6m, pre-tax profits were flat at £9.5m.

The company will pay out a final dividend of 5.5p a share.

Safestyle spent £4.1m buying the freeholds of its two main locations, its head office in Bradford and its manufacturing facility in Wombwell in South Yorkshire.

“We felt more comfortable having the two properties back within the group,” said Mr Birmingham.

“We saved £600,000 in rent a year.”

Analyst Andy Hanson at Zeus Capital said: “Safestyle announced an excellent set of 2013 results that are ahead of our expectations on revenue, pre-tax profits and earnings. 2013 marks the ninth consecutive year the business has won market share.”

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