Sale of Asia Pacific ("APAC") and India businesses

21 October 2015

Sweett Group plc

("Sweett Group", the "Company" or the "Group")

Sale of Asia Pacific ("APAC") and India businesses

Trading update

and

Directorate changes

Highlights

· APAC and India businesses sold for £9.3 million in cash (before transaction and separation costs)

· Sale in line with strategic goals to improve Group's profitability and cash flow, to reduce debt and rebalance the risk profile of the Group - an important step in the delivery of the Group's strategic plan

· Ongoing Group net debt reduced to approximately £4.0 million post-completion of Sale

· UK business performing strongly

· Board changes to reflect ongoing Group structure

Sale of APAC and India businesses

Sweett Group (AIM:CSG.L), the provider of professional services for the construction and management of building and infrastructure projects, is pleased to announce the sale of its APAC and India businesses ("Sold Businesses") to Currie & Brown Holdings Limited ("Currie & Brown"), the asset management and construction consultancy, for a total cash consideration of £9.3 million before transaction and separation costs of approximately £1.3 million (the "Sale").

The Sale follows the review of strategy undertaken by the Board earlier this year, the key output of which was to focus on improving the Group's profitability and cash flow, to reduce debt and rebalance the risk profile of the Group. The net proceeds of the Sale will be used to reduce Group net debt which post-completion of the Sale will be approximately £4.0 million (31 March 2015: £9.7 million).

The Sold Businesses operate in Australia, China, Hong Kong, India, Macau, Malaysia, Singapore, Thailand and Vietnam. In the Company's most recent audited consolidated financial statements for the year ended 31 March 2015 (the "Accounts"), the Sold Businesses reported turnover of approximately £30 million and an operating profit before amortisation of acquired intangibles, goodwill impairment losses and exceptional administrative expenses of approximately £1.2 million.

The terms of the Sale are a total enterprise value for the Sold Businesses of £11.1 million giving consideration of £9.3 million in cash before transaction and separation costs. The balance sheet carrying value of the Sold Businesses in the Accounts as at 31 March 2015 was approximately £19.0 million and a non-cash write down of approximately £10.0 million will be taken in the Company's current financial year of which approximately £6.0 million relates to goodwill and intangible assets. As at 31 March 2015, the Sold Businesses had combined work in progress and trade debtors of £15.6 million representing 146 lockup days.

Following completion of the Sale, Sweett Group has operations in the UK, Ireland, France, Spain, the Middle East, Sri Lanka and in the USA and Canada. In the Accounts, the retained businesses had turnover of approximately £58.0 million and reported an operating profit before amortisation of acquired intangibles, goodwill impairment losses and exceptional administrative expenses of approximately £4.7 million. As at 30 September 2015, the retained businesses had an order book of approximately £54.1 million.

Trading update

We are pleased to report that our UK business is performing strongly, in a generally buoyant market, with first half revenue growth of 5% compared to the six months ended 30 September 2014 and with improving margins. We continue to service key clients within Europe and trading in North America has been solid with a number of transatlantic referrals. The Middle East business has had a challenging first six months and the Board is currently considering the strategic options in the region. A further update on trading will be provided at the time of the release of the Company's interim results for the six months ended 30 September 2015 in early December 2015.

Directorate changes

Following completion of the Sale, Kim Berry, Managing Director of APAC, has stepped down from the Board as an executive Director of the Company with immediate effect. In addition, in light of the changes to the Group's operating and management structure following the Sale, Derek Pitcher will also be stepping down from the Board as an executive Director with effect from 31 October 2015.

Douglas McCormick, CEO of Sweett Group said:

"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.

"I would like to take this opportunity to thank all our colleagues in the APAC and India businesses for their contribution to the Group. They will no doubt continue their success within Currie & Brown, a business which is in a position to invest in APAC and India."

John Dodds, Chairman of Sweett Group said:

"I would like to thank Derek Pitcher for his contribution as an executive Director of the Company over the past 15 years and I appreciate and recognise his continued involvement in and contribution to the business.

"I would also like to thank Kim Berry for his contribution to Sweett Group over the four years that he has been on the Board and wish him well for the future."

ENDS

Contacts:

About Sweett Group

Sweett Group is a provider of professional services for the construction and management of building and infrastructure projects.

We offer cost consulting and project management services supporting clients through every stage of the project life cycle based upon our international expertise and local knowledge. Our strength is our people's world-class talent through which, we have time and again, delivered exceptional results. The strategy builds on these key strengths.

A modern, progressive company, Sweett Group sets itself apart through people, culture and aptitude to change. By collaborative practices and innovative thinking - supported at all levels - our clients receive an offering that is constantly evolving and improving in response to project needs.