Fit-out specialist Styles & Wood is exploring ways to raise money to strengthen its balance sheet, the firm revealed today.
Styles & Wood is exploring a number of options to strengthen its balance sheet including a potential equity fundraising and a potential sale to private equity.
The firm said its bank remains supportive but in light of events it will enter an offer period as set out under the city code on takeovers and mergers.
A statement said: “There can be no certainty that either an offer will be made, nor as to the terms on which any offer may be made for the company, or that it will be successful in raising any additional equity capital.”
Styles & Wood said while its results for the year ended 31 December 2008 will be affected by exceptional items, underlying trading since the year end remains in line with management expectations.
Since the arrival of a new management team in June 2008, Styles & Wood’s customer base has remained intact.
The company is also benefitting from decisive and immediate action taken on costs by the new management team, with annualised costs savings of in excess of £4 million implemented.
As of yesterday, Styles & Wood’s order book was in line with management’s expectations at £77.4 million.