(Reuters) – Safestyle UK Plc <SFES.L> on Monday forecast a bigger loss for the year, as the British windows and doors retailer spent heavily to hire contract workers.
The company now expects full-year underlying loss before tax of between 8.2 million pounds ($10.3 million) and 8.6 million pounds. It had previously forecast a loss of about 6.5 million pounds.
The Bradford-based retailer, which sells PVC windows and doors to the home improvement market, has struggled with a steady decline in sales volume on the back of a dip in consumer confidence in the Britain.
Safestyle also reached a five-year settlement this year with its co-founder who set up an aggressive rival – Safeglaze, which had steadily eaten into Safestyle’s market share.
Sales order intake in the six-week period since Oct. 22 has improved from what it was earlier this year, but is in line with the same period last year, Safestyle said on Monday.
The retailer said the significant increase in its contracted workforce and investments would lead to a recovery, with 2019 performance ahead of current market expectations.
“Safestyle has the potential to recover most of the 25% of lost revenues (and associated profits) now that its workforce is restored to pre-SafeGlaze levels,” Liberum analyst said.
(Reporting by Samantha Machado in Bengaluru; Editing by Sai Sachin Ravikumar and Saumyadeb Chakrabarty)