Styles & Wood swings to profit on refinancing plans

19th Jun 2015 10:36

Styles and Wood (S&W) shares surged on Friday as it revealed the refinancing of its outstanding convertible preference shares, with Henderson Global Investors fund and a Royal Bank of Scotland (RBS) subsidiary both investing.The refinancing will bolster S&W's capital structures, while increasing its net assets by £3.6bn and boosting cash outflows by £5.2m, allowing greater scope for acquisitions."The refinancing announced today positions Styles & Wood for growth at a pivotal stage in the group's development," said chief executive Tony Lenehan."Over the last 12-18 months we have successfully implemented our diversification strategy to ensure that we are ideally placed to take advantage of the positive trends we are seeing in our core markets," he added.S&W also announced that it swung to a net profit of £0.2m in 2014, rebounding from a £0.7m loss a year earlier, led by a stronger order book and the company's diversification strategy.As of 11:00 BST, S&W was trading 48% higher at 88p.