Profits creep up at Styles & Wood

FIT-OUT contractor Styles & Wood has increased margins and moved into profit – after stripping out finance charges.

The Altrincham company, which works for major banks and retailers, said sales rose by £300,000 to £40.6m in the six months to June 30.

The gross margin improved to 8.8% from 7.9% and the business achieved a pre-taX profit of £100,000 after stripping out costs of £600,000 associated with notional interest on preference shares. This compared with a £200,000 loss last time.

The group said the depressed economy, and subdued construction forecasts for the coming years, meant it would continue to diversify. Government cuts have created oportunities, said the company, as the public sector loks to refurbish premises rather than build new ones.

Chief executive Tony Lenehan said: “While the wider current economic environment remains particularly challenging our ability to focus on aligning our interests with the business needs of our customers has been reflected in our encouraging first half performance.  

“At the same time the group has been able to diversify to provide a more resilient model and encouraging progress has been made in securing sustainable business interest in new sectors.

He added: “With our growing order book and strong balance sheet, the group is well positioned to build on its progress in the traditionally stronger second half of the year.”