16th Jun 2015 08:17
LONDON (Alliance News) - Aukett Swanke Group PLC on Tuesday said results for its current financial year depend on its second-half performance in the UK, where the architecture and interior design company expects a pick up in activity following the Conservative Party's surprise majority victory in the General Election in May.
Pretax profit for the first half of Aukett Swanke's financial year, the six months ended March 31, was up to GBP815,000 from GBP750,000 in the corresponding period the prior year, as revenue grew to GBP9.2 million from GBP7.6 million.
"The run up to the General Election in the UK caused some softening in the UK market in the first half whilst Russia and Turkey were impacted by, variously, currency volatility and political uncertainty which deferred local client decision-making. We continue to invest in the Middle East which we believe has good growth prospects," Chief Executive Nicholas Thompson said in a statement.
The importance of the UK, the source of about 80% of the company's revenue in the first half, was highlighted as Thompson said he expects operations in Russia, Turkey and the Middle East to remain loss-making in the short term before they "subsequently return to profits".
"Continental European operations are expected to improve their profit performance based on current order books," Thompson said.
"Overall the board remains confident in the group's performance as we progress through the second half, indeed with a period of less political uncertainty in the UK there should be more stability engendering a stronger market," the CEO said.
Aukett Swanke increased its interim dividend to 0.11 pence per share from 0.10p.
Aukett Swanke shares were down 14% at 7.44 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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