2nd Dec 2015 08:29
LONDON (Alliance News) - Construction and property consultancy Sweett Group PLC on Wednesday said it has admitted to an offence under the UK Bribery Act and expects to pay a fine in the near future, as its pretax loss widened in the first half due to one-off costs related to the ongoing investigation by the Serious Fraud Office into the company.
The UK's SFO has been conducting an investigation into the conduct of a former employee of Cyril Sweet International Ltd, a Sweett subsidiary, in the Middle East. Allegations of bribery involving the employee were first made in The Wall Street Journal in 2013, prompting an internal investigation by Sweett which uncovered two contracts deemed suspicious, which the company then reported to the SFO.
Sweett said it has now admitted to an offence under the UK Bribery Act 2010, specifically failing to prevent an associated person bribing another to obtain or retain business for the company. Sweett now expects to face a fine following prosecution by the SFO, though said it would not be able to provide any guidance on the size of the fine it will face.
"Today's announcement brings closure on the Middle East legacy issues a step closer, allowing the group to progress unencumbered in the future. This is an important next step in the strategic turnaround of the business," said Sweett Chief Executive Douglas McCormick.
The news came as the group said its pretax loss for the half to the end of September was GBP548,000, compared to a GBP59,000 loss, mainly due to costs related to the SFO investigation. Revenue rose to GBP30.2 million from GBP27.8 million.
In the half, the group sold its business in Asia Pacific and will exit the Middle East market, with a number of options being considered. It will now focus on its UK and European operations, along with its North American business, all of which are performing well.
"Sweett Group is a great business, the outlook for our European and North American markets is strong and I am confident that we will see further benefit in the second half of the year," McCormick added.
Sweett shares were down 23% early Wednesday to 16.00 pence, one of the worst performers in the AIM All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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