Fit out specialist braced to go into the red for first six months of 2013
Fit out specialist Styles & Wood expects to make a loss in the first half of 2013 partly as a result of the intense pressure on margins in the sector.
In an update to the City released today, the firm said its diversification strategy combined with margin pressures in the current market would lead to a half-year result 鈥渟ignificantly below鈥� the previous year鈥檚 拢100,000 underlying profit before tax, albeit on increased revenue.
However, Styles & Wood - which is led by chief executive Tony Lenehan - said it expected revenue and profit to be 鈥渉eavily skewed towards the second half of the year鈥�.
In the statement, the firm said: 鈥淒espite the challenges faced, the group has continued to invest in its diversification into new sectors securing a number of significant contract wins across the healthcare, solar and commercial sectors.
鈥淭he group maintains robust relationships with key customers in the banking sector and has strong visibility of framework allocations for the remainder of 2013.
鈥淲ith an order book ahead of the prior year and further progress made on the Group鈥檚 diversification strategy, the Board expects full year trading to be in line with market expectations.鈥�
Styles & Wood saw its pre-tax profit rise 68% to 拢806,000 for the full year 2012 on flat revenue of just under 拢100m.
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