HAKI reports sharp UK sales drop as construction starts stall

HAKI Safety has reported a sharp fall in its UK sales in the first quarter of 2026, blaming extended approval timelines from the Building Safety Regulator for delays to new construction and property renovation work.

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The Swedish-listed scaffolding and access safety group said UK revenues fell to SEK 52 million (£4.2 million) in the three months to 31 March, down from SEK 76 million (£6.2 million) in the same quarter a year earlier. That is a drop of nearly a third.

Publishing its Q1 2026 interim report today (21 April), HAKI Safety said the decline was driven by an unusually low level of activity in the UK property sector.

The group pointed directly to the Building Safety Regulator, which oversees fire safety approvals for high-rise buildings and healthcare facilities. HAKI said extended processing times at the regulator had contributed to major delays to the commencement of construction work.

The impact was felt most sharply in the company’s Work Zone Safety division, which supplies catchfans, barrier systems and access platforms under the HAKI, Semmco and Newbow Aerospace brands. Divisional sales fell 2.3% to SEK 85 million (£6.9 million), and adjusted EBITA halved to SEK 6 million (roughly £490,000) from SEK 12 million (roughly £970,000) a year earlier.

The UK is HAKI Safety’s single largest market for work zone safety products, accounting for 42% of divisional sales on a rolling 12-month basis. It also represents 16% of the company’s scaffolding systems revenue.

HAKI Safety CEO Sverker Lindberg said the company remained “well-positioned in the UK market when the turnaround comes.” The group said it has introduced cost-saving measures in response to the UK weakness and is prepared to take further action.

It described the decline as temporary and said it expects processing times at the Building Safety Regulator to improve over time.

Despite the UK setback, the group reported 9% organic growth at a global level, with net sales rising to SEK 286 million (£23.1 million). Adjusted EBITA rose to SEK 10 million (around £810,000) from SEK 6 million a year earlier, supported by a recovery in Norway and Denmark.

Its Scaffolding Systems division, which includes the HAKI and EKRO brands, returned to profit after a loss in Q1 2025. Sales in that division rose 16.3% to SEK 143 million (£11.6 million). HAKI Safety also confirmed it completed the acquisition of Redditch-based Newbow Aerospace in January. Newbow manufactures ground support equipment for aircraft maintenance. The deal, worth an initial £2.3 million with an estimated £1 million earnout, gives the group a second UK manufacturing base alongside Semmco.

The results point to continued pressure on UK scaffolding and access contractors working on high-rise residential and healthcare projects, where Building Safety Regulator approvals remain a key bottleneck.

SM Newsdesk
SM Newsdeskhttps://www.scaffmag.com
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