Safestyle Uk Share Discussion Threads

[buffett9] 06/4/2020 01:17

Hard to see how Safestyle can survive IMO. Only £8.5 million of receivables and cash on the balance sheet under current assets, and yet nearly £19m of current liabilities due for payment this year. Where are they going to find the £10.5m difference in the next 12 months, given they have suspended all operations? Market cap is only £11.6m. Emergency rights issue equal to current market cap would be difficult, given the massive dilutive effect for existing shareholders and reluctance of investors to part with their precious cash at this difficult time. I think we're going to increasingly see market valuations being driven almost solely by companies current ratios, as it's the only way we can really assess their survivability in the current crisis.

[flybird] 24/3/2020 13:26

Really good read Davebowler

[davebowler] 24/3/2020 12:45

Zeus; Temporary Closure of Sites Following on from Boris Johnson’s statement yesterday evening, Safestyle has announced a temporary closure of its sites across the UK along with the cessation of all installation activities. This should not come as a surprise; management had indicated last week this was a likely short-term outcome as the pandemic progressed. With the turnaround at Safestyle having picked up pace in the final few weeks of FY19 and into the early part of FY20 the impact from Covid-19 is frustrating. However, the short-term focus is on dealing with the issues and the business is in a far better shape to deal with the situation than it has been for some time with extended financing facilities and a leaner more variable cost base. Temporary closure of facilities: Safestyle will be temporarily closing all its facilities including the main factory in Wombwell, Yorkshire, sales offices across the country and at the same time ceasing installations. The closure process will be orderly and all installations in progress will be completed, consumers will not be left with unfinished jobs. Installations in the order book will be rescheduled for four to six weeks’ time and will be rescheduled on a rolling basis, dependent on guidance from government. This will allow for the resumption of work in an orderly fashion as and when allowed. Financial impact: There will of course be a financial impact to the current FY20 financial year to the end of December. Scenario modelling by management indicate that with the financing available to the business along with the already announced Government financial support, Safestyle has the financial capacity to withstand the closure of facilities beyond June 2020. Management has already enacted actions to manage the impact including reductions in costs and capital expenditure. Further help provided by government will also be utilised should it be forthcoming and appropriate to do so. Forecasts: It remains difficult to provide detailed financial forecasts and as such we leave FY20 forecast unchanged, effectively pre any impact from Covid-19, and await further guidance as and when it is forthcoming from management.

[flybird] 21/3/2020 08:02

Top one on John!

[onjohn] 20/3/2020 22:45

Our results show that during 2019 the business restored profitability and closed the year with a healthy order book and having laid strong foundations for continued performance improvement and sustainable growth. Our intent remains to build the business for the long-term benefit of shareholders with our trusted value brand whilst consolidating our position as the UK's No 1 choice for Windows and Doors."

[sphere25] 19/3/2020 18:49

Borderline finished. Just about hanging in there. Extremely high risk: "However, under the scenarios modelled, there is a risk of breaching the Group's financial covenants and in a scenario where a total loss of written and fitted sales extends beyond the end of April 2020 there is a risk of the liquidity requirements of the business exceeding the total quantum of facilities available. Based on the above indications the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. However, the specific downside scenario detailed above would indicate the existence of a material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern and that the Group may, as a consequence, be unable to realise its assets and discharge its liabilities in the normal course of business."

[buffett9] 17/3/2020 11:04

Elderly people who rely on dividends for income are likely to see that income dry up, and will cut back on expenditure accordingly... especially capital expenditure on their homes, such as new windows. I think Safestyle are going to find it almost impossible to make new sales. Not a good position to be in for a company that is already struggling to make a profit!

[flybird] 15/3/2020 11:36

Ok I concede a little, it’s no secret that Anglian are owned by venture capitalists and unfortunately small companies are at great risk, however I think this is a massive opportunity for Safestyle to tough it out, they have no great debt and a capable management structure even if they have to borrow money in the medium to long term!!

[tobyteddy] 15/3/2020 11:00

I've Got to say i think Buffett9 has a valid point. when people retreat to the safety of there own homes, the last thing they want is a gobby salesman sat on their sofa followed by two guys ripping out windows. The pre plc guys would have been all over this, but the suits driving around in flash cars are not .many companies will fold over the next few months, hopefully safestyle can survive , but it wouldnt suprise me if it didn't. Hate to sound negative at this point, but the risk is there.

[flybird] 14/3/2020 07:45

You sound bitter as oppose to considered!!

[buffett9] 13/3/2020 22:39

If in a few weeks the UK shuts down with Coronavirus as Italy has, there could be serious doubts over whether Safestyle can survive. Who on earth is going to get new windows during a virus lockdown? Has the company got enough cash to survive 6 months of nil revenue? We could see full year sales halve, from £120m to just £60m. Difficult to see how they could survive such a squeeze against their fixed overhead... shares could easily collapse to just 2p or 3p on bankruptcy fears. Just look at what's happened to Intu!

[sbb1x] 28/2/2020 16:47

What's going on here

[nw99] 11/2/2020 16:25

Back in this

[sbb1x] 05/2/2020 12:15

Bid dropped to 48pBounce of 52 week low ?

[sbb1x] 04/2/2020 14:19

Drifting back to 52 week low ?

[nw99] 14/1/2020 10:43

Will go that high again with the company on a turnaround

[nobilis] 14/1/2020 10:33

1 year high 93.6p

[squarepeg86] 10/1/2020 13:54

Your guess is as good as mine but we'll find out at the next update if not before.