COVID-19: Temporary Closure of Sites

RNS Number : 3495H

Safestyle UK PLC

24 March 2020

 

24 March 2020

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Safestyle UK plc

("Safestyle" or the "Group")

COVID-19: Temporary Closure of Sites  

Safestyle UK plc (AIM: SFE), the leading UK ‐ focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, announces that, in light of the current situation with COVID-19 and following recent Government guidance, it is temporarily closing all of its locations across the country and will also temporarily cease all installation activities.

This decision has been made in the interests of all its key stakeholders, in particular its colleagues, its customers, shareholders and the nation as a whole. 

Financial Position  

The decision to temporarily halt normal activity will potentially have a material impact on the Group's trading for the year ending 31 December 2020.  The Group has modelled the impact of temporary closure over a prolonged period.  This modelling makes certain assumptions regarding the application of the measures announced by the Government to support businesses and its colleagues during this period, including the Coronavirus Jobs Retention Scheme and the VAT Deferral programme which have already been confirmed.

The Group is also awaiting an update from the Government, which it expects to have within the next few days, of the support that it will help the Group provide to its self-employed colleagues which it feels is crucial to so many people impacted as a result of this pandemic in both the Group and wider country alike.

In addition to this support from Government, the Board is taking prudent actions to manage the near term challenges whilst ensuring the business remains well positioned to deliver its long term plans.  These actions include removing cost, including marketing costs and non-critical capital expenditure from the business.

Based on these modelling assumptions and with the continued support of the Government and the Group's key funding partner, the Board believes the Group has the financial capacity to withstand the impact of a closure of its sites beyond the end of June 2020.

Looking Forward  

Providing financial guidance for the year ending 31 December 2020 is impossible in the current environment pending further certainty over the length and extent of the current circumstances in the country.  As and when we are able to provide further information we will do so.

Whilst the outlook during this crisis remains uncertain, the progress made in the Group's Turnaround Plan as detailed in the 2019 Final Results announcement on 19 March 2020 has made the business more resilient with a leaner fixed cost base and considerable liquidity to underpin its ability to navigate through this event and return to its plans when the economy recovers.

The Group will keep its temporary site closures and installation cessation under continuous review and provide further updates when appropriate.  

Enquiries:

Safestyle UK plc Mike Gallacher, Chief Executive Officer Rob Neale, Chief Financial Officer	via FTI Consulting
Zeus Capital (Nominated Adviser & Joint Broker) Dan Bate / D aniel Harris / Dominic King	Tel: [phone]
Liberum Capital Limited (Joint Broker) Neil Patel / Jamie Richards	Tel: [phone]
FTI Consulting (Financial PR) Alex Beagley / James Styles / Sam Macpherson	Tel: [phone]

About Safestyle UK plc

The Group is the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market.  For more information please visit www.safestyleukplc.co.uk or www.safestyle-windows.co.uk .

 

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