RESULTS13 Apr 2011 10:59
High street property support provider Styles & Wood Group plc returned to profit in 2010 despite a 29% fall in revenue, driven by a sharp drop in retail business.
Profit before tax for the year to December, excluding preference share accounting, was £0.2m compared with a 2009 loss of £1.4m, the first profit at this level since 2007.
Revenue fell to £99.1m from £139.3m, with gross margins rising to 7.8% from 6.4%. However, the company said revenue in the second half at £59.0m (2009: £64.5m) was substantially up on the first half.
A drive to grow the business in the commercial and banking markets had led to an increase in revenue to £50.4m from £42.0m from these sectors, of which 93% was delivered through frameworks.
The retail business was affected by high street stores adopting a cautious approach to investment. Sector revenue fell by 54% to £48.7m from £90.6m.
After charging notional interest on preference shares of £0.9m, the group delivered a loss after tax of £0.9m, down from £1.7m.
Underlying pre-tax profit, excluding non-recurring items and preference share accounting, was £0.5m, down from £0.7m. Underlying operating profit was £1.4m against a 2009 figure of £1.8m.
Net cash at the year end was £7.5m, down from £8.4m.
No final dividend was proposed.
CEO Tony Lenehan said, 'The more promising signs seen in the second half have continued into 2011, with current trading ahead of the same period 12 months ago.
'Whilst we expect markets in certain sectors to remain challenging, the group will continue to focus on delivering improved margin performance and sustainable profitable growth.'
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