24 Oct 2013 07:00
24 October 2013
Sweett Group plc ("Sweett Group" or the "Group")
Trading Update
Sweett Group (AIM: CSG), the international construction and property consultancy, is pleased to provide the following trading update in advance of publication of its unaudited half-year results for the six months ended 30 September 2013.
Each part of the business has performed well and has contributed to a very positive overall performance in the first half of the year.
In Europe, of which for Sweett Group the UK is the major constituent, we have performed strongly. There have been clear signs of increased activity across all our markets. This has coincided with our continued diversification across a range of sectors. Our more traditional markets, including Retail, Commercial and Healthcare, have all demonstrated improving momentum. Our strategy to develop market share in the Transport, Energy and Infrastructure sectors is proving well judged. The financial close of the Leeds Social Housing project, which was announced in July, has contributed additional profits in the period in our Investments operation.
Our Middle East business, which is concentrated mainly in the UAE and the Kingdom of Saudi Arabia, has had a steady start to the year. The region is experiencing a resurgence in terms of activity and, through careful targeting and strong client relationships, we are steadily growing our order book. We have followed a strategy to target clients in sectors where our offer is the most compelling.
The Indian business continues to grow at a healthy pace serving both local developers and international corporate clients. We have recently established an office in Kolkata, our fifth in the country.
Our Asia Pacific business is trading in line with management's expectations while continuing to invest in service diversification and geographical expansion into further Asian hub cities. Operations in China have successfully moved emphasis from the residential sector into commercial and hi-tech sectors and we have commenced delivery of a combined Project Management and Cost Management Service in China principally servicing international corporates and foreign direct investors. In Hong Kong we are engaged in the very active infrastructure and engineering sectors providing cost management, programming and scheduling, contract advisory and claims services and across all offices in Asia and Australia we are growing a combined regional Project Management service structured to provide the international delivery standards required by our multi-national client base.
During the period, predominantly in the second quarter, the Group has unwound the whole of its Australian dollar derivative contract. The financial impact of this is a credit of approximately £1m to finance income which is virtually free of corporation tax and will be reflected in the Group's half-year results for the six months ended 30 September 2013. This is in excess of management's previous expectations and more than recovers the costs expensed in respect of this contract in previous years' financial statements, which totalled £874,000.
The Group's performance since the trading update at our AGM on 30 August has continued to be strong. For the reasons described above, trading operations have maintained the positive momentum referred to at the AGM. As a result, the Board anticipates that the Group's results for the year ending 31 March 2014 will be slightly ahead of management's expectations. Furthermore, the full year profit before taxation will also be increased by the £1m referred to above. Our efforts to achieve the objectives of our 3 year plan of turnover growth and margin improvement remain firmly on track.
The Board expects to announce the Group's unaudited half-year results on 3rd December 2013 and looks forward to providing a further update at that time.
For further information, please contact:
Sweett Group plc Dean Webster, Chief Executive Officer Chris Goscomb, Chief Financial Officer Sophie Hull, Head, Corporate Communications | +44 20 7061 9000
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Westhouse Securities Limited Tom Griffiths Paul Gillam | +44 20 7601 6100 |
About Sweett Group
Sweett Group plc is a global business with expertise in property and infrastructure professional services. Our services include programme and project management, cost management, advisory and PPP related consultancy.
We aim to forge long term, successful relationships with all stakeholders in the property and infrastructure industry. "Global knowhow, local delivery" is the essence of our business and our reach enables us to put global best practice to use in the local markets we serve.
www.sweettgroup.com