CSG.L Regulatory News (CSG)



23 July 2012

Sweett Group plc

("Sweett Group" or "the Group")

Corporate Update

Sweett Group, the international property and infrastructure consultancy, provides a further update.

At the end of March 2012 the Group replaced an expiring foreign exchange contract that had been covering Australian dollar exposures. During the year-end audit, the Company's Auditors have advised that the application of IAS39 in respect of this foreign exchange transaction requires a charge of approximately £650,000 to be made to finance costs. Whilst this has had no impact on the trading performance of the Group and will have no effect on the preliminary results at the EBITDA level, it will have a material effect on the statutory profit before tax and hence the Group's reported results for the year ended 31 March 2012 will be below market expectations.

The Company has previously reported that the profits associated with the sales of its interests in the Inverclyde and Dumfries and Galloway Schools PFI Projects would be deferred into the 2012/13 financial year. The combined effect of these sales is expected to be an improvement of £2.2 million in the net borrowing position and an increase of £1.5 million to the reported profit before tax for the year ended 31 March 2013.

The Board is pleased to report that trading in the first quarter of the 2012/13 financial year has been stronger than in the first quarter of the last financial year and is in line with the Board's expectations. Net debt at the end of the quarter was circa £9 million. The current Order book of £87.0 million remains robust, with the Group continuing to benefit from its diversified global offering.

- Ends -

For further information:

Sweett Group plc Dean Webster, Chief Executive Officer +44 20 7061 9000Chris Goscomb, Chief Financial Officer +44 20 7061 9000Theo Kjellberg, Group Communications Manager +44 20 7061 9102

Westhouse SecuritiesTom Price, Paul Gillam +44 20 7601 6100

FTI ConsultingBilly Clegg, Oliver Winters, Latika Shah +44 20 7831 3113

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/PFI investment.

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