StockMarketWire.com - Safestyle UK is confident of delivering FY results broadly in line with market expectations, but warns that H1 profits will be lower on the year.

Chairman Steve Halbert said 2017 had started positively with robust order intake in the first quarter, however recent trading has been weaker than expected reflecting the latest FENSA statistics.

These showed a significant contraction in the overall market in the first quarter of 2017.

"As a result, compared with an exceptionally strong equivalent trading period last year, the group has seen more modest overall growth of 2% in order intake for the first four months of 2017," Halbert said.

"The Group expects to grow revenues in the first half of the financial year, but anticipates profits in the first half will be lower than the comparative period last year due to a combination of lower than planned volumes and some parallel running costs following investment in our new production facilities, as previously outlined."

He said Safestyle UK had a number of initiatives underway and combined with the impact of enhanced production productivity, expected an improved performance in the second half of the financial year.

"The Group continues to gain market share and to build its order book during the first half," he said.

"While we are currently operating in a more challenging trading environment, the Group's balance sheet and cash generation remain strong and the Board is confident of delivering Full Year results broadly in line with market expectations."






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