15th Apr 2014 10:12
LONDON (Alliance News) - Property and infrastructure consultancy Sweett Group Tuesday said its results for the last financial year are expected to be "slightly" ahead of market expectations, despite restructuring costs and the inclusion of material charges for exceptional administrative expenses.
The unforeseen charges include the costs associated with investigating allegations made by The Wall Street Journal last year about improper businesses conduct by a former employee, said Sweett.
In a trading update ahead of if results for the year to March 31, the company said it will be taking a full-year charge of its performance share plan for the first time of around GBP600,000. However, due to the unpredictable nature of this charge, this will be disclosed separately going forward.
The firm said other material non-recurring items included within its results will be the profit on the undwinding of the Australian dollar derivative contract of GBP1.0 million and the profit on the financial close of its Leeds Social Housing project of GBP1.1 million.
Sweett said it is experiencing a recovery in its traditional markets in the UK, in addition to the success achieved from investments made to access the energy and infrastructure markets.
Overseas, the firm said it will continue to target growth through developing its network and revenues in Asia Pacific and India, with an increased focus on greater working capital efficiency.
In the Middle East, Sweett said it will "maintain its policy to be highly selective in its end markets and limit revenues in this region to no more than 10% of group income," while in the US its efforts to enter the market with its joint venture partner continue to develop "steadily."
Sweett said its order book rose to GBP105 million from GBP99 million in the previous period, and this was after a reduction of around 5% over the period as a result of foreign exchange impacts.
Financially, net debt at the period-end is expected to be around GBP6.2 million, down from GBP7.1 million a year earlier. The group said it will continue to focus on further reductions in net debt primarily through improvements in working capital management.
Sweett Group also said it is in the process of recruiting a successor to Chairman Mike Henderson who, as previously announced, will be retiring from the board this year.
"Having regard to a suitable handover period it is likely that Mike Henderson's effective retirement date will be later than previously indicated," said the company.
The stock was trading at 39.25 pence Tuesday morning, up 0.75 pence or 2.0%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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