8th Jun 2016 07:32
LONDON (Alliance News) - Construction and building consultancy Sweett Group PLC on Wednesday said its pretax loss widened in its financial year due to the disposal of its APAC and India businesses, although said this had meant its debt was reduced during the year.
Sweett posted a pretax loss of GBP19.1 million for the year ended March 31, from a loss of GBP1.1 million a year earlier, with the bulk of this coming from its discontinued operations, where a pretax loss of GBP14.0 million was incurred.
This was after Sweett made a GBP13.7 million loss on the disposal of its APAC and India businesses to Currie & Brown in October, it said.
Revenue from the two businesses for the year dropped to GBP17.7 million from GBP30.3 million and, as such, group revenue dropped to GBP77.0 million from GBP88.3 million.
Following the sale, the company said it paid back some of its debt, and at year end on March 31, its debt stood at GBP2.6 million, from GBP9.7 million a year earlier.
The company also closed down its Middle East business and exited the region during the financial year, after having reorganised the business into five regions: London & the South East, England & Wales, Scotland & Ireland, Mainland Europe and North America. Sweett said this has "significantly improved accountability and re-energised the business".
Sweett said it was paying no dividend for the year, in line with a year earlier, as it said it continues to focus on reducing its debt.
Sweett, however, said it should be in a stronger position in the years ahead, after Canadian engineering consultant WSP Global Inc last month said it has agreed to acquire Sweett for GBP24.0 million in cash.
"Joining WSP will provide Sweett with a stronger platform both operationally and financially for growth in the years ahead," said Chief Executive Douglas McCormick.
Shares in Sweett were flat at 34.50 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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