I was doing some further DD and based on some anecdotal evidence they do have a left of self employed sales people and likely installers as well. (See Glassdoor). They have some issues in terms of aftercare (see Trustpilot).
Those are both risks - can't find installers, can't find salespeople, can't complete jobs. Can't do proper consistent aftercare.
There is certainly work they can do to improve the business. It's certainly cheaper to complete things in once installation without aftercare.
This is one of the main reasons I decided to create a Substack. Comments like yours benefit the entire community. It allows readers (myself included) to access additional information and it adds value to the thesis summary. Helping everyone tremendously! Such insightful comments greatly improve the thesis summary as well as us as investors, and therefore the quality of the Substack as a whole.
As far as I know, management is currently in the process of decreasing the amount of outsourced labor by converting them into employed personnel.
There is also an academy that has been recently created. Hopefully, both these initiatives help Safestyle deliver a better and more consistent service throughout all of their locations, while simultaneously helping them face their labor shortage issues.
They have also been creating internal procedures to standardize their way of working (where possible) and they have a strategy for the aftercare service you mentioned in place, which is mentioned and explained in the CMD'22.
Naturally, as with every company, only time will tell us how they evolve the handling of their employees and their aftercare services provided, but you are correct in your assessment, as there is certainly execution risk here.
With that I'd like to say, once again, thank you so much for taking the time to share your insights.
Please continue to do so. The points you make are really important, and I really appreciate you for raising them.
I encourage everyone reading this to leave a comment in such a constructive way.
Dear Birgit, thanks again for sharing your thoughts. Apologies for the late reply.
First of all, and because this comment is public, I would like to remind everyone reading that this is not investment advice. Rather, I hope this proves to be an investment idea generator for more experienced investors, and if found interesting, a deeper due diligence is made in order to form an independent opinion.
The stock dropped in price after the release of the statement "Half Year Trading Update and Notice of Results". From that I believe we need to closely watch the execution of the strategic plan put in place. We need to monitor that the cost reduction program does not affect the increase in consistency and quality of services. And, we also need to keep a close eye on the company’s ability to keep passing inflation cost onto customers.
Kindly take into account that when I invest, I invest with a long-term view. With that in mind I consider there to be no major structural changes happening ATM. Obviously, if things begin to play out differently than initially expected, I hope I can see the signs asap and change my opinion accordingly.
Interesante artículo. Gracias por compartir el trabajo!
Casualmente, lo leí hace un par de días, y hoy justo he visto la caída espectacular que ha sufrido la cotización por el comunicado de la compañía anunciando un outlook bastante peor del esperado de cara a los próximos meses. No he mirado la compañía más allá de tu tesis, pero quería saber si tenías opinión. Ellos dicen que están ganando cuota de mercado a pesar de esto, no se si un -45% en un día es sobrereacción del mercado o si realmente no hay luz al final del túnel.
Daniel, muchas gracias en primer lugar por compartir tu pregunta pero tambien darte las gracias por la forma en que la has hecho. Disculpa haber tardado tanto en responder.
Acabo de contestar arriba a Birgir y de subir un thread a twitter con mi opinión después del comunicado. Por lo que han transmitido en el, no me parece que haya un cambio fundamental en la empresa y por lo tanto, en la tesis descrita.
Eso sí, como también menciono arriba, creo que debemos seguir viendo: que Safestyle consigue incrementar la consistencia y calidad del servicio prestado; y que mantiene la habilidad de traspasar la subida de precios al consumidor final.
Thanks for the article - very interesting.
I was doing some further DD and based on some anecdotal evidence they do have a left of self employed sales people and likely installers as well. (See Glassdoor). They have some issues in terms of aftercare (see Trustpilot).
Those are both risks - can't find installers, can't find salespeople, can't complete jobs. Can't do proper consistent aftercare.
There is certainly work they can do to improve the business. It's certainly cheaper to complete things in once installation without aftercare.
Some risk there.
Thanks a lot for your comment, Birgir Magnússon!
This is one of the main reasons I decided to create a Substack. Comments like yours benefit the entire community. It allows readers (myself included) to access additional information and it adds value to the thesis summary. Helping everyone tremendously! Such insightful comments greatly improve the thesis summary as well as us as investors, and therefore the quality of the Substack as a whole.
As far as I know, management is currently in the process of decreasing the amount of outsourced labor by converting them into employed personnel.
There is also an academy that has been recently created. Hopefully, both these initiatives help Safestyle deliver a better and more consistent service throughout all of their locations, while simultaneously helping them face their labor shortage issues.
They have also been creating internal procedures to standardize their way of working (where possible) and they have a strategy for the aftercare service you mentioned in place, which is mentioned and explained in the CMD'22.
Naturally, as with every company, only time will tell us how they evolve the handling of their employees and their aftercare services provided, but you are correct in your assessment, as there is certainly execution risk here.
With that I'd like to say, once again, thank you so much for taking the time to share your insights.
Please continue to do so. The points you make are really important, and I really appreciate you for raising them.
I encourage everyone reading this to leave a comment in such a constructive way.
Let's talk about any and all topics written here.
Well that didn't go well. At least it was a small position I took.
Dear Birgit, thanks again for sharing your thoughts. Apologies for the late reply.
First of all, and because this comment is public, I would like to remind everyone reading that this is not investment advice. Rather, I hope this proves to be an investment idea generator for more experienced investors, and if found interesting, a deeper due diligence is made in order to form an independent opinion.
The stock dropped in price after the release of the statement "Half Year Trading Update and Notice of Results". From that I believe we need to closely watch the execution of the strategic plan put in place. We need to monitor that the cost reduction program does not affect the increase in consistency and quality of services. And, we also need to keep a close eye on the company’s ability to keep passing inflation cost onto customers.
Kindly take into account that when I invest, I invest with a long-term view. With that in mind I consider there to be no major structural changes happening ATM. Obviously, if things begin to play out differently than initially expected, I hope I can see the signs asap and change my opinion accordingly.
There is no accusation against you, I made my own decision based on information you collected together and I read up on following your write up.
I look forward to reading more of your write ups.
Thanks for contributing 🙂
Interesante artículo. Gracias por compartir el trabajo!
Casualmente, lo leí hace un par de días, y hoy justo he visto la caída espectacular que ha sufrido la cotización por el comunicado de la compañía anunciando un outlook bastante peor del esperado de cara a los próximos meses. No he mirado la compañía más allá de tu tesis, pero quería saber si tenías opinión. Ellos dicen que están ganando cuota de mercado a pesar de esto, no se si un -45% en un día es sobrereacción del mercado o si realmente no hay luz al final del túnel.
Gracias de nuevo!
Abrazo
Daniel, muchas gracias en primer lugar por compartir tu pregunta pero tambien darte las gracias por la forma en que la has hecho. Disculpa haber tardado tanto en responder.
Acabo de contestar arriba a Birgir y de subir un thread a twitter con mi opinión después del comunicado. Por lo que han transmitido en el, no me parece que haya un cambio fundamental en la empresa y por lo tanto, en la tesis descrita.
Eso sí, como también menciono arriba, creo que debemos seguir viendo: que Safestyle consigue incrementar la consistencia y calidad del servicio prestado; y que mantiene la habilidad de traspasar la subida de precios al consumidor final.
Espero haberte ayudado, y una vez más gracias
Sin problema!
Muchas gracias por la respuesta.
Abrazo👍🏻