21st Oct 2015 08:18
LONDON (Alliance News) - Sweett Group PLC Wednesday said it has sold its Asia Pacific and India businesses for GBP9.3 million in cash, as part of its strategy to improve profitability and cash flow, reduce debt and rebalance the risk profile.
Shares in Sweett were trading up 22.4% at 25.70 Wednesday morning following the announcement.
Sweett, which provides services to the construction industry, said it sold the businesses to Currie & Brown Holdings Ltd. Post completion, ongoing group net debt has reduced to GBP4.0 million, it said.
Sweett added that its UK business is performing strongly, with first-half revenue growth of 5% in the six months to September 30, and with improving margins. Trading in North America has also been solid, but the Middle East business had a challenging first half. The company said it is currently considering strategic options in the Middle East.
"I am very pleased to announce the sale of our APAC and India businesses which is in line with our stated strategy. The sale proceeds will allow us to reduce debt significantly, improve the working capital dynamics of the group and invest in our growing and cash generative businesses in Europe as well as rebalancing the group's risk profile. I continue to be excited about the delivery of our strategic plan," Chief Executive Douglas McCormick said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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