Styles & Wood has unveiled a significant re-financing deal after its full year results revealed a dive into the red with a pre-tax loss of almost £1 million.
The group’s profits plummeted – as clients put increasing pressure on margins – from a pre-tax profit of £11.8 million in 2007, to a loss of £950,000 last year.
Revenues also fell 23 per cent, from £315.5 million to £243.1 million.
Consequently the company last night announced a substantial re-financing plan, including a £10 million placing of 40,000,000 new shares.
Styles & Wood chairman Jim Martin said: “In response to the negative economic outlook and intense financial pressure, our customers have reduced capital expenditure budgets which has resulted in orders being cancelled, delayed or deferred. This significantly reduced our revenues in 2008 which, combined with gross margins being under pressure in many of the framework arrangements, accounts for the major fall in profits.
“Despite these difficulties we have retained all of our framework customers and overall there has been an increase in our customer base.”
Styles said while it would continue to focus on the retail sector, it would also be targeting new markets including the public sector, office and leisure markets.
It said it had also made its “first cautious steps” to create an international division, setting up in the Gulf offering both construction and support services.