Styles & Wood Group Regulatory News (STY)

19 May 2010

Styles & Wood Group plc ("Styles & Wood" or the "Group")

Interim Management Statement

Styles & Wood Group plc, a leading UK provider of property support to major retailers, banks and commercial organisations, makes the following statement on trading for the period from 1 January 2010 to 18 May 2010.

Trading conditions in the period have remained challenging with customers, in the current weak economic environment, remaining cautious as to property investment decisions.

Despite the market conditions, 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. On the current trend, by the year end, approximately 40 per cent of the Group's revenue 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.

Styles & Wood has a strong client list of premier retailers and retail banks. During the period the Group has added new customers including Merlin and Makro.

At this stage in the year, it is anticipated that the Group's revenue 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.

The Group's balance sheet remains strong. As at 18 May, net cash was £4.1m compared to £24.5m net debt in the previous year.

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