13 Oct 2009 07:00
13th October 2009
Cyril Sweett Group plc ('Cyril Sweett' or the 'Group')
Pre-close Trading Update
Cyril Sweett, the international construction and property consultancy, is pleased to provide a pre-close trading update for the half year ended 30 September 2009.
Overall trading for the half year is expected to be in line with management's expectations. Of note, there will be a number of one-off costs being absorbed within operating profits and an exceptional cost of approximately £0.4m recognised in respect of expenditure incurred on a PFI project abandoned by Norfolk County Council after preferred bidder status had been achieved.
The UK business has been subject to the reduced levels of activity and pricing pressure anticipated at the beginning of the year, when we took the appropriate action to re-align our cost base. Conditions in our public sector markets have been better than those in the commercial and retail sectors, which seem to have stabilised.
The Group has a clear strategy to expand internationally to further diversify the business and we are seeing a number of opportunities in our core trading areas both in terms of prospective projects and acquisition potential. We have reduced our reliance on certain weaker markets and are targeting territories where we perceive long-term growth opportunities. The costs of the development activities are being accommodated within operating profits, which will reflect a poor performance in Australia.
Furthermore, in line with our strategy to continue to grow the Group's PPP Investment business across a wider sector base, we are currently working on several PPP and PFI prospects, one of which achieved construction completion within the period. We are also part of the consortium which was appointed by NHS Cumbria to form a Local Improvement Finance Trust (LIFT) company to finance and redevelop the county's existing community hospitals.
Interim results will be announced on 1 December 2009.
- Ends-
For further information and photography, call:
| Cyril Sweett Group plc Dean Webster, Chief Executive Officer | 020 7061 9000 |
| Caroline Covill, Head of Communications | 020 7061 9102 ; 07810 551 128 |
| Brewin Dolphin Investment Banking Andrew Kitchingman Sean Wyndham-Quin | 0845 270 8613 |
| Financial Dynamics Jonathon Brill Billy Clegg Georgina Bonham | 020 7831 3113 |