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RNS Number : 4481O

Safestyle UK PLC

03 October 2023

3 October 2023

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Safestyle UK plc

("Safestyle" or the "Group")

Stakeholder Engagement Update

Safestyle UK plc (AIM: SFE), the leading UK focused retailer and manufacturer of PVCu replacement windows and doors for the homeowner market, today issues the following update.

As reported in our recent Interim Results announcement, the Group has been engaging with its stakeholders to discuss ways to strengthen the balance sheet in order to support its recovery and help facilitate future growth. As part of these discussions, the Group has also engaged with a number of third parties who have expressed interest in investing in the Group.

These discussions with both existing shareholders and other third parties have been productive and remain ongoing. In order to achieve a working capital injection, which will not be in the form of an equity placing, an alternative financing structure that realises the aims stated above is currently being sought.

As previously updated, the Group expects its year-end net debt to be between GBP(5.5)m and GBP(6.5)m. At this point and into early January 2024, the full revolving credit facility with the Group's bank (the "RCF") will be required to support the working capital and liquidity requirements of the business.

At this time, the Group remains compliant with the covenants of its GBP7.5m borrowing facility. However, if the losses forecast for the remainder of the year materialise, this would generate a material shortfall versus the existing covenants of the RCF in November. Therefore, under the current facility terms, access to the RCF at that time could be fully restricted.

Alongside the discussions with existing shareholders and other third parties described above, the Board has had good discussions with the Group's bank, who have remained supportive, regarding renegotiating terms of the RCF in the form of a covenant waiver. This is yet to be formally agreed and is expected to be inter-conditional with the working capital injection referred to above.

The Board remains confident that it will secure the ongoing support required to enable the Group to navigate the near-term challenges presented by what is a difficult market context.

Looking further ahead, the Board maintains that growth recovery prospects are strong and data of an ageing housing stock in need of repair underpins this.

The Group will provide a further update on this process in due course.

Enquiries:

 
 Safestyle UK plc                              via FTI Consulting 
  Rob Neale, Chief Executive Officer 
  Phil Joyner, Chief Financial Officer 
 Zeus (Nominated Adviser & Joint Broker)       Tel: 0203 829 5000 
  Dan Bate / James Edis (Investment Banking) 
  Dominic King (Corporate Broking) 
 Liberum Capital Limited (Joint Broker)        Tel: 0203 100 2100 
  Jamie Richards / William King / Anake 
  Singh 
 FTI Consulting (Financial PR)                 Tel: 0203 727 1000 
  Alex Beagley / Sam Macpherson / Amy Goldup

About Safestyle UK plc

The Group is the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market. For more information please visit www.safestyleukplc.co.uk or www.safestyle-windows.co.uk .

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