Styles & Wood shares bounce on healthy annual results
Shares in the Sale-based commercial fit-out contractor shot up 20% in early trading on Wednesday after a strong set of financial results met with a string of ‘buy’ recommendations from stockmarket analysts.
The results for the year ended 31 December 2015 showed revenue up 18.6% to £115.0m and pre-tax profit up 309% to £2.4m (2014: £0.6m). Cash in the bank increased to £5.6m from £1.2m in 2014 and debt reduced to £1.43m from £11.76m last year. Return on capital employed was up 9.8% to 67.1%.
The share price has recovered to 240p, valuing the business at £16.7m, from 50p a year ago following successful refinancing and consecutive positive financial results following a loss-making period.
Styles & Wood employs 350 staff: 50 in London, 50 in Nottingham and 250 in Sale, at Orbit’s Cavendish House. The company completed its relocation from Altrincham to the 26,000 sq ft building last week.
Highlights from the past year include gaining a position as delivery partner with TSB on a five-year framework with £15m projected annual revenue run rate. The firm also completed the comprehensive modernisation and fit-out of Lancaster University Library. There was also the completion of City Gate office refurbishment and structural reconfiguration in central Manchester for Hermes Real Estate, and the appointment to carry out the £17.7m refurbishment of Westminster House, Portland Street in Manchester for Aviva Investors.
