Flogging windows door-to-door might not sound sexy, but for newly-listed PVCu window retailer and manufacturer Safestyle (SFE), there's a lot to be excited about. The combination of a booming housing market, falling unemployment and rising consumer confidence has created ideal growth conditions, sending volumes up 8 per cent last year.
Adjusting for £5m of exceptional costs related to the IPO in December and a historic tax settlement, pre-tax profit soared 58 per cent to £15m, boosted by an increase in the average sales price. In the highly fragmented world of windows, Safestyle - which sells directly to consumers by generating business door-to-door, over the internet and through TV and radio adverts - increased its market share for the ninth consecutive year to 7.9 per cent. While industry volumes dropped 35 per cent between 2007 and 2013, Safestyle bucked the trend by growing its business.
Order intake so far this year is strong, and the completion of a £1.5m IT and manufacturing investment programme will boost efficiency and capacity, cut costs and improve customer service. Zeus Capital expects adjusted pre-tax profit of £16.4m in 2014, giving EPS of 16.2p.
| SAFESTYLE (SFE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 205p | MARKET VALUE: | £159m | |
| TOUCH: | 200.5-208p | 12-MONTH HIGH: | 205p | LOW: 130p |
| DIVIDEND YIELD: | 2.7% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 27p* | NET CASH: | £4.7m | |
| Year to 31 Dec** | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 95 | 7.9 | 6.8 | nil |
| 2011 | 99 | 7.0 | 6.8 | nil |
| 2012 | 110 | 9.5 | 9.1 | nil |
| 2013 | 125 | 9.5 | 8.3 | 5.5 |
| % change | +13 | -1 | -9 | - |
Ex-div:18 Jun Payment:14 Jul *Includes intangible assets of £21.7m or 28p a share **2010-2012 pre IPO pro-forma data | ||||
