Retailers reluctant to spend, says Styles & Wood
SHOPFITTER Styles & Wood expects customers to hold back on spending throughout 2010.
But the Altrincham-based group which has worked on new stores for Marks & Spencer, Boots, Argos and Morrisons, said the market was showing, “some signs of stabilising”.
However, this change has been noted against a “very difficult” first half.
“Overall our customers remain cautious with their investment programmes and we expect this position will continue into 2010,” said the business in a trading update.
In June the firm sought the support of its shareholders and banker to bolster its balance sheet. It organised a £12.15m share placing and a debt for equity swap.
The refinancing has left Styles & Wood with net cash at October 31 of £6.3m, more than the firm expected.
It said its four divisions were trading in line with expectations with revenue and underlying profit for the year to December 31 expected to come in on target.
The restructuring of the group to align the cost base with revenues and future opportunities will be complete by the end of 2009, said the business. The costs of this exercise are also in line with expectations.
