Styles & Wood expects to make half-year loss

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 “significantly below” the previous year’s £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 “heavily skewed towards the second half of the year”.

In the statement, the firm said: “Despite 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.

“The group maintains robust relationships with key customers in the banking sector and has strong visibility of framework allocations for the remainder of 2013.

“With an order book ahead of the prior year and further progress made on the Group’s diversification strategy, the Board expects full year trading to be in line with market expectations.”

Styles & Wood saw its pre-tax profit rise 68% to £806,000 for the full year 2012 on flat revenue of just under £100m.