StockMarketWire.com - Replacement door and window provider Safestyle UK said it expected to post a full-year loss owing to a rise in lead generation costs.

The company said it had made continued progress with its turnaround plan, 'albeit against a backdrop of weak consumer confidence and challenging market conditions in the second half of the year'.

Underlying losses for the year through December were seen at up to £1.5m on revenue of around £126m.

Safestyle UK said its revenue in the second half period had risen about 11% on-year, with monthly profits delivered across most of the second half.

'Sales performance accelerated in November and December, driving additional lead generation costs in the fourth quarter while strengthening the year-end order book, which increased by 24%,' it added.

Safestyle UK also announced that it had extended an existing borrowing facility with Aurelius Finance Company to October 2021.

Looking to the current financial year, it said it would invest about £3m to deliver turnaround initiatives.

'Whilst this is expected to have a negative impact on short-term profitability, the board believes that the substantial uplift in media spend alongside selective investment to continue transforming key areas of the business will deliver material benefit to Safestyle from 2021 onwards,' the company said.




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