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London-listed Safestyle is on sale.

The London-listed windows and doors specialist, Safestyle, is considering the possibility of selling the company due to financial strains caused by the weakening UK housing market.

As per the sources revealed to Sky News regarding Safestyle, Interpath Advisory is currently exploring strategic options that include refinancing or an outright sale.

As per City sources, potential buyers are aware of the process having a tiny market capitalization of less than £4 million; however, they are also aware that any sales would not significantly impact the value for shareholders.

The company has also cautioned the City regarding its financial challenges, and earlier this month, it told investors 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.”

It further added, “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.”

However, the suitor’s identity was still unclear on Tuesday.

One of the analysts pointed out that if the company were to remain solvent, it would require some kind of working capital injection.

The company has revealed that it will likely breach banking covenants if anticipated losses materialize in its stock exchange announcement this month.

The company said that “looking further ahead, the board maintains that growth recovery prospects are strong, and data of an aging housing stock in need of repair underpins this.”

Safestyle refrained from commenting on the involvement of Interpath.

- Published By Team Timeswire

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