Retail fit-out specialist Styles & Wood has issued its second profit warning in a month after suffering what it called “significant project deferrals”.

In a statement to the City, the company said turnover in the six months to 30 June would be between £120m and £125m, while the figure for the year would not exceed £250m.

In its first announcement on 23 May, it said there was uncertainty over the full-year figure owing to the credit crunch. Sources close to the company predicted a turnover of £315m.

Andy Brown, an analyst at Panmure Gordon, halved his pre-tax profit forecast for the year from £10m to £5m after the statement.

Brown said: “This is also clearly bad news for Morgan Sindall and ISG, which have large fit-out operations.”