The stock has taken a hit today off the back of a worrying trading update. The share price has halved in just 7 months.
Companies: Safestyle UK Plc
Safestyle (LON: SFE) has issued a worrying trading update this morning, sending shares tumbling.
Management signalled a slump in performance in its H1 17 Interims back in September, where it also flagged a continuation of waning consumer confidence.
Today it confirmed "demand has weakened further" with a 7% downturn in sales by volume in Q3 17.
The outlook for Q4 and beyond isn't much brighter:
"With sales in the short month of December not helped by severe weather disruption to the planned installation programme, it is clear that Q4 sales will now be below our already reduced expectations. At the same time, those sales have come at an increased cost of acquisition, due to higher lead generation expense in a competitive landscape."
And as a result:
"2017 full year outturn (namely underlying profit before tax, before exceptional restructuring costs and share based payment charges) is now expected to be below current market expectations, at a level of least £15 million."
Shares in Safestyle dove 18% on Wednesday off the back of the update.
Management went on to say:
"The benefits of our cost saving and efficiency programme will fall mainly in 2018 and as such should help mitigate the impact on profitability of any further fall in market demand. We, therefore, expect only modest growth in earnings over 2017."
The stock hit a three-year low of 156p today and has halved since May '17 alone.
