A record number of installations at window and door replacement specialist Safestyle (SFE) proved a boon for the group last year. Both average prices and order values rose, helping improve the cash conversion rate to 95 per cent, in turn boosting the group's net cash position. Management isn't going to sit on this, though - it has pledged a 6.8p per share special dividend to be paid alongside its final dividend.
Chief executive Steve Birmingham credits a bumper second-half performance to several factors, notably its improved advertising strategies, its greater range of finance options introduced last year and its conservatory refurbishment programme. He said improved awareness of its brand meant more people were directly seeking the Aim-traded company out, and that 34 per cent of sales were now financed through credit, compared with 22 per cent previously.
Management sees further demand and has pledged £7.25m towards a factory extension, which will allow it to eventually double capacity once the space is fully utilised.
House broker Zeus Capital has upgraded its forecasts and now expects pre-tax profit of £18.9m in 2016, leading to EPS of 18.8p, compared with £17.7m and 17.9p in 2015.
| SAFESTYLE (SFE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 285p | MARKET VALUE: | £229m | |
| TOUCH: | 280-286p | 12-MONTH HIGH: | 295p | LOW: 168p |
| DIVIDEND YIELD: | 3.6%* | PE RATIO: | 16 | |
| NET ASSET VALUE: | 47p** | NET CASH: | £16.5m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 99 | 7.0 | 6.8 | nil |
| 2012 | 110 | 9.5 | 9.1 | nil |
| 2013 | 125 | 9.5 | 8.3 | 5.5 |
| 2014 | 136 | 16.4 | 16.5 | 9.3 |
| 2015 | 149 | 17.6 | 17.8 | 10.2 |
| % change | +9 | +7 | +8 | +10 |
Ex-div: 16 Jun Payment: 11 Jul *Does not include 2015 special dividend worth 6.8p a share **Includes intangible assets of £21.8m, or 27p a share | ||||
