Fit-out specialist Styles & Wood today has said if current trends continue 40 per cent of the firm’s turnover in 2010 will come from the office and banking sectors.
In a trading update for the period from 1 January to 18 May 2010 Styles & Wood said trading conditions have remained challenging with customers, in the current weak economic environment, remaining cautious as to property investment decisions.
Styles & Wood has made progress in construction services with its drive into the office and banking sectors, most notably winning a position on the Lloyds Banking Group framework.
The firm said on the current trend, by the year end, approximately 40 per cent of the group’s turnover will come from the office and banking sectors, demonstrating the success of the group’s strategy to diversify the business.
However, growth in these sectors has been more than offset by a decline within the food sector and the retail sector as a whole has remained depressed.
The support services division has experienced reduced volumes of spending from its retail customers.
During the period the group has added new customers including Merlin and Makro.
At this stage in the year, it is anticipated that Styles & Wood’s turnover will have a significant weighting towards the second half, due to the combination of contracts secured in the first half being delivered and framework volumes increasing as market confidence improves in the office and banking sectors.
As at 18 May, Styles & Wood’s net cash was £4.1m compared to £24.5m net debt in the previous year.