Styles & Wood upbeat despite pre-tax loss

Aaron Morby 10 years ago
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Fit-out specialist Styles & Wood has slashed overheads by 10% after recording a pre-tax loss in 2013.

The firm also today revealed plans to shift from a full stock market listing to the AIM where the regulatory burden is less costly.

Styles & Wood boss Tony Lenehan said trading had improved in the second half of the year and prospects for the year ahead were much better.

While the firm made a small £1.2m operating profit, it fell into a £500,000 pre-tax loss after one-off measures to cut overheads by 10%  and losses at its Dutco joint venture in Dubai.

Turnover for the year slipped 4%  to £94m, due to a work hiatus from successfully rebidding several key high street bank frameworks.

Styles & Woods set up a solar installation business last year as part of a strategy to broaden its customer base and has several commercial rooftop schemes under its belt.

Lenehan said: “While the volatility and uncertainty in our markets during the first half of the year had a negative impact on full year trading, I am pleased to report a much stronger profit and cash performance in the second half.

“This improvement was due to the success of our diversification strategy and assisted by the first signs of growth in the construction sector for a number of years.

“Our performance during the second half along with the opening order book for 2014, which is tracking ahead of last year, provides positive indicators for future growth potential.

Lenehan added: “The proposed move to AiM is considered by the Board to be more appropriate for the group and in the best interests of the shareholders in potentially providing a greater degree of corporate flexibility and a more attractive proposition for investors.”

Styles & Wood shares have been trading below their nominal value of 25p since 2010 and now stand at 16p.

Listed companies are not permitted to issue new shares below their nominal value, which has restricted the group’s ability to raise more cash on the markets.

The reorganisation will set the value below the market price and involve consolidating 10 shares into one ordinary share and a deferred share.

 

 

 

 

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