Styles & Wood has stayed in the red during the first half of 2010.
The fit out specialist made a pre-tax loss of 拢900,000, a slight improvement on the 拢1.1m loss posted in the same period a year ago.
Revenue fell by almost half to 拢40.2m (H1 2009: 拢74.8m).
Its net cash position worsened, with reserves of only 拢5.3m at 30 June 2010, compared to 拢8.7m 12 months earlier.
On a more positive note, the order book was up 10% following a drive into the office and banking sector, to offset the continued weakening of the retail sector. Approximately 38% of group revenue for the first half came from office and banking, with new contracts including a deal to refurbish 40 RBS branches.
Styles & Wood's 榨汁姬 Services business (StoreFit) provided most of the firm's revenue, delivering 拢32.6m (H1 2009: 拢64.5m) and an operating profit of 拢1.1m (H1 2009: 拢1.8m).
The Support Services businesses (StorePlanning, StoreCare and iSite) generated revenue of 拢7.6m (H1 2009: 拢10.3m), and operating profit of 拢0.5m (H1 2009: 拢1.3m).
Ivan McKeever, CEO, expects Styles & Wood to be back in the black by the end of the financial year.
"Trading conditions in our major markets remained difficult in the first half of this year,鈥� he said. 鈥淗owever I am pleased with the progress we have made against our turnaround strategy and despite the extremely challenging market conditions we expect to return the business to profitability in this financial year.
鈥淢argins continue to improve in line with our strategy to focus on profitable projects rather than market share. Importantly we have started to see a return in market confidence in the business, as customers take comfort from the financial strength of the Company.
鈥淗aving successfully refinanced the Group in 2009 our objective is to return the business to profitability in 2010 before growing market share in 2011. As the business continues to strengthen the Board is confident that it can deliver on this strategy."
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