Window manufacturer Safestyle UK (SFE:AIM) is up 4.2% to 245p as it increases its order intake in the first half of 2016 by nearly a fifth

The company says sales revenue is up 12.8% from £74 million last year to £83.5 million and notes its market share is up year-on-year to 10%.

Safestyle plans to use its larger order book to complete a controlled release, thereby pass on some of the benefits in the second half of 2016.

Liberum has picked Safestyle as one of its preferred building material companies because it expects the market share momentum to be maintained due to significant cost advantages against its competitors.

In addition, the broker believes returns from the manufacturer will remain high and any risks can be mitigated by the strong balance sheet.

The company’s specific focus on replacement windows also provides economies of scale in manufacturing, distribution and marketing.

Cash flow is strong with net cash of £23.6 million as of 30 June, up significantly on the £14.9 million posted last year.

Safestyle CEO Steve Birmingham said: ‘Whilst the longer term impact of the referendum decision on the broader economy remains to be seen, there has been no short term detrimental effect on our order intake.

‘The company has a proven successful model, with a growth strategy underpinned by a combination of our expanded product range, attractive promotional finance package, continued geographic expansion and financial strength.’

Safestyle expects to outperform its wider market and achieve full year results in line with management expectations.

Issue Date: 19 Jul 2016