Bowman
22 Oct 2018
SFE - Settlement of Litigation Well, it seems that the Company has finally submitted to the effective “blackmail†it has been subjected to and paid up, (click to see today’s news release). At least the markets seem to like to agreement, and there has been a nice uplift in the sp this morning. We will just have to wait and see if this is the beginning of a more sustained improvement, or just a temporary one. Currently we are well clear of my first target (60), and just short of the second (80) whilst also approaching the 200d EMA. The next stumbling blocks to be overcome are the potential UK economic disasters that could result from Brexit and a Labour administration. sfe.png2812x2054 164 KB
Bowman
20 Sep 2018
SFE - H1 Results The 2018 interim results were released this morning [click to view] and the market appears to like the sentiments included therein. I think that most of the negatives had already been adequately flagged before, so they did not pose a shock. The next half year is critical, since it will show the extent of any turnaround that the Company manages to achieve. Today’s positive reaction is a start but the next three targets (60p, 80p and 100p) remain to be achieved, and these would only the very beginning of a recovery needed. sfe.png2812x2054 222 KB
Bowman
03 Sep 2018
Settlement of Litigation Related RNS - [click here] A little good news today. Let us hope that the Company can get back to their task of making some money for patient investors. We do seem to have had a small upward movement recently, but we still have a very long way to go to hit the next three targets (60, 80 and then 100), or to get above the 200 day EMA (~95). sfe.png4887x3597 247 KB
Bowman
19 Jun 2018
More share options for Directors Options amounting to 3.2% of the current number of shares in issue are outstanding. I have not checked the performance criteria governing their conversion, but I doubt they will be very onerous. Director’s option award RNS
Meanbugger
01 Jun 2018
Re: Dire announcement You really have to feel sympathy for the poor NOMAD here. So the chief executive borrows money from the ex-major shareholder secured on some of his shares thus breaching the agreement with the NOMAD which he would have signed and fails to disclose the share dealing. No reason has been given for why he needed to borrow the money in the first place. Meanwhile ex-major shareholder sets up a competing business which threatens the existence of SFE. After a series of disappointing trading updates, none of which refer to this new aggressive competitor, the chief executive sells a good proportion of the shares under charge and pays the entire proceeds of £2.24 million to clear the original loan of £1,555,556. The next trading statement at the end of February then highlights the new aggressive competitor which the company is facing.I keep saying this but I've never known this sort of thing to happen to a quoted company before. Steve Birmingham's position as an executive director now looks unsustainable and the respective legal teams are presumably working on the next steps as I write. AIM regulation will be asking the NOMAD for a full explanation even though it is clearly not the NOMAD's fault. This also muddies the water as regards the legal claim against Safeglaze as the SFE chief executive was in debt to the backer of the new competitor. I feel for SFE shareholders. The company looks undervalued but with so much happening behind the scenes you just dread the next rns announcement.
Meanbugger
29 May 2018
Re: Dire announcement I don't think Safeglaze has lost in the first court hearing. Safestyle's rns announcement didn't feature any codewords suggesting they were pleased with the outcome. I would regard this first result as a 0-0 draw. Safestyle needs the court to grant relief which prevents Safeglaze from harming its business which needs a judge to decide on the substantive matters in dispute. The court hearing on July 9th is much more important as those matters should be examined in more detail. Even this July hearing will not be the end of the line for either party as clearly without an agreement between the parties this will be heading to a full trial - probably next year.
claude reins
29 May 2018
Re: Dire announcement Thanks for that. I can assure you that there is a major difference between the two examples. As you will see, this legal action is also against individuals as well as IP in general, and the interim measure should have a very real effect on the behaviour of several senior management in the competitor, as well as the rank and file operations. I am not saying that SFE are out of the woods, ut it is interesting that the next hearing is only a few weeks away which should indicate that SFE are well prepared in the information backing up the allegations they will be re-presenting to the court at that time. I agree with you that it is a pity that the Chair has decided that this is taking up too much of his time and energy, because I thought he was a strong pair of hands, but........things move on and as with the change in CEO, the company has stated that it is looking for a Chair who can devote the necessary time AND specifically has the expertise in the turn round situation. I understand that the power behind this whole affair and sustaining the senior management of the competitor - who was seriously involved in SFE some years back - has returned to Asia to be more closely involved in some of his other interests. Perhaps he doesn't want to be in the UK when the specifics come before the court in July?Watch this space, shall we? PS you say Safeglaze are arguing they are simply competing with SFE as with Tapi? Were you in court? I wasn't so I don't know how the competitor's barristers defended stage 1, but they lost, didn't they?
Meanbugger
29 May 2018
Re: Dire announcement Claude, thank you for your posts. Yes I don't have any specific knowledge of this situation which I will say again is most unusual. Normally when employees leave a company they have various non-compete clauses in their contracts which limit this sort of thing happening. Carpetright is now suffering strong competition from Tapi which was set up by Lord Harris's son. Tapi are targeting Carpetright's most profitable stores and obviously Tapi will have a good working knowledge of rents, margins, suppliers etc gained from their experience gained from working within Carpetright. No-one is alleging that Tapi has done anything wrong in the way they are going about their business.Now I accept the world of double glazing is a lot murkier with a lot more 'selling' involved before a sale is concluded. The interim reliefs granted in today's RNS are likely to be along the lines of Safeglaze UK shall not do anything illegal to cause damage to Safestyle's business and that in particular they shall not use for their own benefit any intellectual property belonging to Safestyle. All this is fair enough but until the next court hearing in July, the interim relief that has been granted is unlikely to impinge on the way Safeglaze are conducting their business. Only if and when the court has been given overwhelming evidence of any wrongdoing by Safeglaze, will Safestyle receive useful assistance in its competitive struggles.Meanwhile the litigation is very time-consuming and it's no surprise the chairman has had enough. Good luck SFE shareholders but this will be a tough fight with Safeglaze arguing they have done nothing different from Tapi's lawful competition with Carpetright.
IOMINVESTCOM
22 May 2018
Re: Dire announcement Hi Claude,Thanks for giving a full account of your thinking towards the SFE troubles which is appreciated.I think in this current market climate there is better companies to be giving a Strong Buy rating. Do you not think the dark clouds surrounding SFE will keep individuals from buying at this point. ie Have you bought more recently or intend to increase or average down on your position at these levels if you rate them so highly?atb
claude reins
22 May 2018
Re: Dire announcement Sorry - a bit of an issue with cut and paste and some of it either doesnt make complete sense or the grammar is poor, even poorer than usual! It should read:All the best to you and to all holders. There is considerable light at the end of the tunnel. That's why I give it a Strong Buy although there will not be an immediate leap in SP. On the other hand, this action should be seen as a positive and calculated one and not as a desperate last stand response. I look forward to see what the new CEO and his team come up with on the broader business front, supported by the former CEO, Mr Birmingham, who stays on the BOD and is well and truly with the company to ensure the value of his remaining shareholding moves back towards the level it was when he sold some towards the end of last year (1.4m at 160p). SFE is a strong company and according to my very reliable source is very popular with its loyal employees based on the quality of the product and the way it does business.(The last comment must always be seen in the light of the market in which they are working. Sales people go for sales, dont they, whether it is aero engines, clothes or double glazing and conservatories?). PS I am a small investor and only have my shareholding at heart when making these comments. I hope you are the same. I am not ramping the company, merely offering soundly based comment and opinions. You and others will have to make up your own minds....but let's do it based on sound foundations, shall we?In the meantime, good to hear form someone else on this BB!
claude reins
22 May 2018
Re: Dire announcement Unless you are talking with knowledge - and I am - I think that you may be jumping to the wrong conclusions. This was inevitable and has been building for weeks, if not months. It is a jungle out there, and always has been in the double glazing industry, with not only this sort of behaviour but also physical damage to persons and property on the part of some competitors.1. I am sure it will come out in the allegations that a lot of data was stolen from SFE. Quite straightforward - theft - but will of course will need to be proven, together with the seriously negative effects on SFE.2.One to one conversations with customers by SFE's named competitor staff speaking clear untruths about SFE's ability to deliver the best products at the price in this market; untrue and misleading telephone calls to customers. You wouldnt believe what they will do! The competitor is importing product from the Republic of Ireland, not bad I understand and not the best, and what about quality control ; SFE control everything from start to finish in their new purpose built factory in Barnsley.3. Staff are staring to drift back and will be employed again on a highly selective basis. They are disillusioned with the results and the methods at the competitor.4. SFE are targeting specific regions where they are fighting back hard, and the early reports are they are achieving even better results than before in terms of sales volumes and particularly values!5. I understand some fundamental separate and positive market action may be initiated by SFE this year, and I am not referring to this sort of legal action. However, this was inevitable and as I say has been in the pipeline for some time, gathering the evidence which wil be presented to the courts.6. I dont know where you have got the idea that this sort of dirty tricks competitive behaviour is unprecedented. It happens on a a national and international scale all the time. Its just that it may not come up as a court case in a specific company which you and I are both interested in. The legal action is part of the SFE fight back but only a small part. Watch this space in the coming months. In the meantime the best news is that their 'fight back' areas with better trained staff are generating better VALUE as well as VOLUME sales than before 'The Troubles'.All the best to you and to all holders. There is considerable light at the end of the tunnel. That's why I give it a Strong Buy although there will not be an immediate leap in SP. On the other hand, this action should be seen as a positive and calculated one and not as a desperate last stand response. I look forward to see what the new CEO and his team, supported by the existing CEO, come up with on the broader business front. SFE is a strong company and according to my very reliable source is very popular with its loyal employees based on the quality of the product and the way it does business. (The last comment must always be seen in the light of the market in which they are working. Sales people go for sales, dont they, whether it is aero engines, clothes or double glazing and conservatories?). only have the company and my shareholding at heart, but alweays PS I am a small investor and only have my shareholding at heart when making these comments. I hope you are the same. I am not ramping the company, merely ofeering soundly based comment and opinions. You and others will have to make up your own minds....but let's do it based on sound foundations, shall we?In the meantime, good to hear form someone else on this BB!
Meanbugger
21 May 2018
Re: Dire announcement Safestyle are now trying to take out an injunction against Safeglaze to stop them poaching customers and badmouthing Safestyle. The legal claim makes a lot of sense as it is essential to try and protect whatever is left of Safestyle's business. They are also claiming for passing off based on the similarity in names and no doubt what the Safeglaze salesmen are saying in their spiel.In my experience this situation is unparalleled for a quoted company. I have never known a situation where the founder of a company which has come to the stock market then begins to rip the business apart by taking the best sales people and their leads. The legal action is a first step but how much irreversible damage has already been done we don't know.The claim is seeking interim relief but I can't see this being given without some overwhelming evidence that Safeglaze are doing something legally wrong. This really is a nightmare situation for SFE shareholders who can only pray that the court steps in to save Safestyle.
IOMINVESTCOM
02 May 2018
Re: Anybody there? Yes, I'm here!!Would you agree with Liberum thinking in my earlier post?I have added these back to my watch list as I'm tending to think the SP "MIGHT" start to look attractive around here although I'm in no rush to buy until we get H2 weighting to sale figures as we could see another leg to drop. Around 50p target price could be interesting.atb
claude reins
02 May 2018
Anybody there? Always like to share thoughts.
IOMINVESTCOM
02 May 2018
Liberum: significant upside at Safestyle Shares in double-glazing company Safestyle (SFES) are pricing in more risk than reward and Liberum believes there could be significant upside.Analyst Charlie Campbell retained his ‘hold’ recommendation and target price of 50p on the stock following the appointment of new chief executive Mike Gallacher, who replaces Steve Birmingham.‘Gallacher led an impressive turnaround in his last post at First Milk, adding £34 million to group profit,’ he said. ‘Birmingham joins the chief financial officer in moving on, losing significant experience from the board, but their replacements are high calibre and the handover orderly and managed.’Campbell said that the shares were ‘pricing in much more risk than reward’ and there ‘could be very significant upside if the new team can stabilise profits and restore growth in spite of a challenging market and industry backdrop’.The shares jumped 6.1% to 59.2p yesterday.[link]
