Bradford-based double-glazing business Safestyle has experienced a decline in profits in the first half of 2017 as the market took a hit.
In the six months to 30 June 2017, Safestyle achieved revenue of £82.5m, an increase of 1.4 per cent on the £81.4m generated in the same period the year before.
However, underlying profit before tax shrank by 15.1 per cent from £10.6m to £9m in 2017.
The business has blamed the reduced profits on the reduction of the market. Statistics by industry body FENSA show the rate of market decline in H1 2017 accelerated from a Q1 reduction of 2.4 per cent to 17.2 per cent in Q2.
The business’ response has been to protect revenues and gain market share, which now stands at 11.2 per cent as of 30 June 2017.
Steve Birmingham, chief executive of Safestyle, said: “The first half of 2017 was an increasingly challenging market however Safestyle increased revenue and market share albeit at a higher cost than historically.
“As a result, we have experienced a decline in profits in what was the severest contraction of our market since 2008/09.
“So far in H2 we have maintained our order intake in line with the previous year and have already commenced a number of initiatives to reduce our cost base.
“The group’s cash conversion and balance sheet remain strong and the board is confident of outperforming the market and gaining market share based on our differentiators of price competitiveness, promotional finance offers, quality energy efficient products and outstanding manufacturing capability.”