Fri, 28 Feb 2020 | ADMINISTRATION
Manchester-based fit-out and refurbishment firm Styles & Wood has announced that it is looking to call in administrators.
The company was taken private by investment firm Central Square Holdings in December 2017, after floating on the Stock Exchange for just over 11 years, delisting in March 2018.
The takeover was for £50.4 million, and was funded by £50 million of new debt. Central Square Holdings has since rebranded as Extentia Group.
However, since the takeover, cashflow problems linked to several large developer-led projects became unsustainable for the business. Last year, chief executive Tony Lenehan and chief finance officer Phil Lanigan both left the company.
Extentia Group CEO Craig Eastwood said that the problems related to a complex project that had been won on low margins. He said: “The difficult but correct and responsible decision has been made to file an intention to appoint administrators”.
According to the company’s most recent accounts, for the 18 months to the end of June 2018, Styles & Wood saw a pre-tax loss of £5.5 million on revenue of £151.5 million. At the time of those accounts, the company employed 344 staff.
This represented a loss on the 12-month period to the end of December 2016, when it registered pre-tax profit of £3.7 million on revenue of £100.2 million.
This loss was partly ascribed to the company having higher overheads as it looked to support an enlarged group due to new Extentia acquisitions.
Craig Eastwood said: “Our focus now is to work with our stakeholders and advisers to explore options for the Styles & Wood businesses, making it a priority to protect the interests of our colleagues and those employed within connected Styles & Wood divisions.”
Eastwood added that Extentia’s furniture, fixture and equipment and professional services businesses would be unaffected.
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