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2 Sep 2011 07:00
2 September 2011
Cyril Sweett Group plc
("Cyril Sweett" or "The Group")
AGM Statement
Speaking today at the Annual General Meeting of Cyril Sweett, the international construction and property consultancy, the Chairman, Michael Henderson, will provide the following comments on current trading:
"Trading conditions have been tough in the year to date.
In Asia Pacific we have continued to perform strongly as the Group has delivered growth in China and commenced operations in both Vietnam and Thailand. Given the continued strong performance from our Asia Pacific operations, we will continue to invest in the region in the second half.
Our UK PPP Management and Investment vehicle has also performed well and we sold our holding in the South Ayrshire Schools PFI project in the first quarter.
In the Middle East, the Arab Spring has caused a number of projects to be cancelled. As a result, we now anticipate lower levels of client investment going forward than we had previously expected.
In the UK, the number of trading days in April was reduced, moreover competitive pressures have continued to impact margins negatively throughout the period. While the first quarter of the financial year tends to be subdued, this trend has continued into the second quarter.
In view of lower operating margins, we are taking action to reduce our UK and Middle East direct costs and administrative functions so that we can service the business with a more appropriate cost base. The costs of this restructuring will be recognised in the first half year as an exceptional item.
We are now seeing an improved level of bidding activity across the Group and the order book has grown by £5m since the last year-end to stand at £83.4m. We also expect further sales from our Investment business in the second half of the year, although the precise timing of these transactions will be subject to market conditions.
Although we anticipate an improved performance in the second half, as a result of these trends, the full year results are likely to be lower than previously expected."
- Ends -
For further information call:
Cyril Sweett Group plc Dean Webster, Chief Executive Officer Chris Goscomb, Chief Financial Officer | 020 7061 9000
|
Theo Kjellberg, Head of Communications | 020 7061 9102
|
Arbuthnot Securities Andrew Kitchingman Tim Willis
| 020 7012 2000
|
Financial Dynamics Billy Clegg Oliver Winters Latika Shah | 020 7831 3113 |
Notes to Editors:
About Cyril Sweett Group plc
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 was founded in 1928 and employs over 1,200 people in 44 offices across Europe, the Middle East, North Africa, India, Sri Lanka, Asia Pacific and Australia.
www.cyrilsweett.com
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