CSG.L Regulatory News (CSG)

28 Feb 2008 07:00

Cyril Sweett Group PLC28 February 2008 28 February 2008 Cyril Sweett Group plc ("Cyril Sweett" or "the Group") Acquisition of Jones Sweett International Limited Cyril Sweett, an international construction and property consultancy, is pleasedto announce the acquisition of the remaining 50% of the issued share capital ofJones Sweett International Limited ("Jones Sweett"), its joint venture company,which operates primarily in the United Arab Emirates ("UAE"). The considerationwas £103,518 in cash, plus a mutual return of shares. This is the first acquisition made by Cyril Sweett Group plc since its IPO inOctober 2007 and is in line with the Group's stated growth strategy which isfocused on continued organic growth, supplemented by carefully selectedacquisitions both in the UK and internationally. Cyril Sweett was the firstquantity surveyor consultancy to list on the AIM market in order to havesignificant first mover advantage and become a consolidator in a highlyfragmented market. As a result of the acquisition, the Joint Venture Agreement with D G Jones andPartners (Middle East) Limited will end, but it is planned that the relationshipbetween the companies will continue as an Alliance Partnership. Upon completion,Jones Sweett International Limited has changed its name to Cyril SweettInternational Limited. As a result of the termination of the Joint Venture Agreement, Cyril SweettInternational Limited will continue to hold 1,038,109 Ordinary shares of 10pence each in the Group. The value of these shares on the date of acquisitionwas £887,583, representing 1.9% of the issued share capital of the Group. Theseshares will continue to be held in Treasury until such time as they are used inconnection with the acquisition of other businesses. It is expected that theacquisition will be immediately earnings enhancing. Cyril Sweett International Limited's Dubai office obtained business registrationin September 2007 and has grown rapidly ever since. Today it employs 25 staff,has an order book estimated at £2.6m and has a projected turnover for thisfinancial year of £750k. Dean Webster, Chief Executive Officer, Cyril Sweett Group plc said: "This acquisition, which is earnings enhancing, supports our wider internationalgrowth strategy and is in line with the strategy outlined at the time of the IPOin the last quarter of 2007. Our Middle East operations are producing veryencouraging results and we have had many notable appointments over the last yearwhich includes a significant role on the world's largest rail project, the DubaiMetro; the new Deira Palm retail mall and 'The Ipad' said to be the mosttechnologically advanced buildings in the world. We have also been awarded aframework agreement to deliver 24 Holiday Inn Express hotels across the region. With construction activity forecast to grow consistently over the coming yearsin the Middle East, we plan to aggressively grow our business in the region,taking advantage of the immense market opportunity. We will use our establishedbusiness in Dubai as the base to expand across the UAE and beyond." The market The UAE, with £19.7 billion building projects under way, commands almost 65 percent. of the construction across the Gulf Cooperation Council ("GCC").Government statistics show construction vacancies in Dubai (currently over123,000) are soaring along with skyscrapers. Most construction is concentratedin Dubai, with attention focused on the Burj Dubai Tower and the £800 millionDubai Airport expansion - the world's largest civil aviation development. AbuDhabi is expecting to commence huge new projects as part of the comprehensivemasterplan for the Emirate. - Ends - For further information and photography, call: +-----------------------------------+-----------------------------------+|Cyril Sweett Group plc |020 7061 9102, 07968 215057 || |caroline.covill@cyrilsweett.com ||Caroline Covill, Head of | ||Communications | |+-----------------------------------+-----------------------------------+|Brewin Dolphin Investment Banking |0845 270 8613 || | ||Andrew Kitchingman | || | ||Sean Wyndham-Quin | || | || | |+-----------------------------------+-----------------------------------+|Financial Dynamics |020 7831 3113 || | ||Jonathon Brill | || | ||Billy Clegg | |+-----------------------------------+-----------------------------------+ About Cyril Sweett • Cyril Sweett is a leading international construction and property consultancy offering expertise in cost consultancy, project management, building surveying and a comprehensive range of specialist consulting services. • Cyril Sweett listed on the AIM market of the London Stock Exchange in October 2007. • Founded in 1928, the company has 18 offices throughout the UK, Ireland, France Dubai and Spain. Global alliances include DG Jones and Partners and Drees & Sommer AG. • The company is working on the following projects in Dubai: - The Lagoons - Al-Arabiya Real Estate, - Deira Retail Mall - Nakheel - Express by Holiday Inn - Ishraq Gulf Real Estate - Repton School - Evolence Capital - The Ipad - Omniyat - The Metro - DG Jones - Zabeel Corporate Park - Rasis Development This information is provided by RNS The company news service from the London Stock Exchange