BRADFORD'S Safestyle UK raises £8.5m to help it through the "current crisis" caused by the coronavirus outbreak.

A placing​ of 50 million new ordinary shares at a price of 17​p per share with institutional and other investors has been completed.

The PVCu windows and doors firm said the proceeds will ensure it has "a strong cash buffer to ensure it can continue in business".

The firm's directors have conditionally subscribed for 619,000 of the placing shares.

It follows the announcement two weeks ago that Safestyle was temporarily closing all of its locations across the country and ceasing all installations too.

Around 95 per cent of the group's staff have already been furloughed at 80 per cent and the CEO, chairman and non-executive directors have taken a 50 per cent reduction in salary for the duration of the crisis.

Mike Gallacher, chief executive officer of Safestyle, said: “The strong support received from our shareholders, both existing and new, in the current challenging market is hugely welcome. I am also delighted that the board has also committed to contribute significantly to the placing, demonstrating all of our directors’ strong belief in the growth strategy and potential of the group. The business has made strong progress in recent years and I believe that, as a result of the actions taken, we are well placed to weather the COVID 19 crisis and emerge to resume our recent positive momentum.

"Together with our existing funding arrangements, this equity fund raise significantly strengthens our balance sheet, providing further headroom should we need to extend our temporary shutdown in line with Government guidance, protecting the NHS and saving lives. The business acted promptly in ceasing all operations on 24 March 2020 and I am grateful to our customers and staff who responded to this challenging situation and the disruption it has caused with such understanding and flexibility. In addition I would like to take the opportunity, on behalf of the board, to thank our shareholders, suppliers, banks, brokers and advisers for their strong support as we have worked together to protect the business and ensure that it emerges strongly when this crisis passes, as in due course it will.”

The placing is subject to approval from shareholders at a general meeting, to be held on April 27.

A team at Zeus Capital acted as nominated adviser and joint broker on the transaction.

Last month the company unveiled its latest full year results which showed it had cut its pre-tax losses by almost 80 per cent in 2019 as the second phase of a turnaround plan took hold. A three-phase turnaround plan was implemented after the company made a £16.3m loss before tax in 2018, as revenue fell by more than £40m.