CSG.L Regulatory News (CSG)

22 April 2013

Sweett Group plc

("Sweett Group" or the "Group")

Trading Update

Sweett Group, the international property and infrastructure consultancy, provides the following trading update in advance of the publication of its preliminary results for the year ended 31 March 2013, scheduled to be announced in early July.

Highlights

·; Trading has been encouraging and the Board expects results to be in line with market expectations

·; Group revenue for the year increased by over 10% from the previous year

·; Order book of just under £100m as at 18 April 2013, an increase of £12m since April 2012

·; Asia Pacific region remains the Group's largest single growth market with revenue in China and South-East Asia up by 15%

·; Proceeds from PPP asset sales of £2.9m received in the year, invested in developing the Group's trading operations, funding working capital and reducing bank borrowing

·; Net debt at 31 March 2013 expected to be £7.7m, down £500,000 from 31 March 2012

·; The Group is focused on the effective management of its working capital

Trading has continued to be encouraging and the Board expects the Group's results for the year to 31 March 2013 to be in line with market expectations. As indicated at the half year, there will be a further charge for exceptional administrative expenses. These include restructuring expenses and costs arising in connection with the General Meeting convened for 9 May 2013 requisitioned by certain minority shareholders.

The Group has continued to deliver on its stated strategy of establishing a diversified and global presence, evidenced by a 10% growth in revenue and a year-on-year increase in the order book of £12m to just under £100m as at 18 April 2013.  Each of the Group's European, Indian and Asia Pacific businesses continues to generate acceptable levels of profitability. Encouragingly, the Middle East and Africa business has been restored to profitability after recording a loss in the previous year.

The Group's European business is benefiting from focused investment in personnel in new sectors, securing a number of contract awards in the energy and infrastructure sectors, in addition to gaining market share in the retail, higher education and health sectors. UK revenue was up 7% on the previous year and net margins improved.

The Asia Pacific region remains the Group's largest single growth market. During the period, the Group has continued to capitalise on a vibrant construction market in mainland China, as well as securing work in the health, infrastructure and commercial sectors in Hong Kong and South-East Asia. Whilst revenue in Australia was flat, revenue in China and South-East Asia was up by 15%. Key recent wins in the region, together with recruitment of senior personnel in project management and IT infrastructure, further underscore the progress made towards the Group's strategy to diversify its geographic footprint and service offering. Business registration is underway in both Indonesia and Malaysia to increase our penetration in the region.

Meanwhile, the Group's business in the Middle East has seen a dramatic improvement year-on-year with a considerable improvement in revenue. Bidding levels have also increased in the period, which has generated a growing regional order book comprising contract awards across the hospitality, aviation and high-end residential sectors.

Activity levels in India are continuing to increase as the Group looks to add corporate end users to its present client base of mainly commercial, residential and hospitality companies. Revenue in the period grew by 20% and new orders secured are demonstrating significant growth potential as economic development in the region gathers pace.

As referred to above, the Group has convened a General Meeting for 9 May 2013 to consider three resolutions at the request of certain minority shareholders. The Board continues to urge shareholders to vote against all three resolutions at the meeting.

Commenting on the Group's outlook, Dean Webster, Chief Executive Officer, said:

"The Group will continue to build on the global platform that we have created. Our order book, both internationally and domestically, is seeing encouraging levels of growth. Extending our existing service lines across a wider geographic area, our growth in the infrastructure sector and our increasing work for corporate clients all indicate that the business is on an upward path. In the short term we expect better levels of growth to come from our Asian operations, although in the medium term we are cautiously optimistic that all our markets will experience improved levels of activity." 

- Ends -

For further information:

Sweett Group plcDean 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 Griffiths, Paul Gillam +44 20 7601 6100

FTI ConsultingBilly Clegg, Oliver Winters, Victoria Huxster +44 20 7831 3113

About Sweett Group

Sweett Group plc is a global business with expertise in property and infrastructure professional services. Our offering services include programme and project management, cost management and advisory activity services.

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