Styles & Wood share rush bodes well for the future

Styles & Wood (S&W) is to float on the Stock Exchange. The shares were oversubscribed two-and-a-half times. Priced at 150p, they will give the group an opening market capitalisation of £97m.

The group’s revenue (previously known as turnover) is expected to hit £260m this year, with the pre-tax profit forecast standing at £7.5m. As at 8 October, close on 100% of forecast revenue for 2006 had been secured through signed letters of intent.

Gerard Quiligotti, chairman, said: “This is the next phase in the group’s development. We have enjoyed 12 years of unbroken growth in revenue and profits, and the business is in excellent shape.”

S&W has four operating divisions: StoreFit, StorePlanning, StoreCare and StoreData. Key customers are mainly in the retail and banking sectors.

The flotation has generated £16m of new money, which is available to chase acquisitions and to pay down debt. Dealings in S&W shares were expected to commence yesterday (Tuesday).

The present management team of Neil Davies, chief executive, and Quiligotti led a management buy-out of S&W back in 1995.

[Contract Journal, 8 November 2006, p3]