Safestyle, the London-listed window and door set up group, is exploring a sale of the corporate amid rising monetary strains which offer additional proof of the weakening UK housing market.
Sky News has learnt that Safestyle is working with Interpath Advisory to discover strategic choices together with a refinancing or outright sale.
City sources mentioned potential consumers have been sounded out in latest days in regards to the course of.
Safestyle has a tiny market capitalisation of lower than £4m, implying that any sale would ship little worth for shareholders.
The firm has already warned the City of its monetary challenges, telling buyers earlier this month that it 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,” it added.
The identification of Safestyle’s suitors was unclear on Tuesday.
One analyst mentioned a working capital injection of some type was prone to be required within the close to time period if the corporate was to stay solvent.
In its inventory change announcement this month, it additionally mentioned that it was prone to breach banking covenants if forecast losses materialise.
“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 corporate mentioned.
Safestyle declined to touch upon Interpath’s involvement.
Source: information.sky.com”