In an unscheduled trading update today, SFE indicates slightly weaker sales than hoped since the last formal update in September, and leads coming at a slightly higher cost of acquisition and lower margin. This has been exacerbated in Dec by delays to their installation programme due to the snow, which will delay some business into Q1 next year. The net effect is a shortfall of c£1.5m versus previously downgraded expectations, and guidance towards c£15m PBT. This equates to a 10% downgrade and a YoY decline of 27%. The net cash position remains strong though and at £12m varies only slightly to our £12.8m forecast. This underpins the Board’s commentary about retaining the progressive dividend policy. Initiatives to drive cost savings and conversion enhancements are advancing and this will support some recovery next year. However, given the lower base and tough end market conditions, management is guiding towards only modest growth, suggesting the downgrade ripples through to next year.