Chief executive points to stage-by-stage commitment to projects as orders fall 20%

Cyril Sweett鈥檚 chief executive Dean Webster has said that the consultancy鈥檚 order book has been weakened by clients鈥� piecemeal approach to projects.

The firm鈥檚 results, revealed last Thursday, showed a 拢100,000 dip in pre-tax profit to 拢2.1m for the year ending 31 March 2010. But turnover fell sharply from 拢78.8m last year to 拢65.6m. The value of the company鈥檚 order book has also tumbled, from 拢74m last year to 拢58m this year.

Sweett work

  • Cost planning and contract advice, among other services, for Titanic Quarter, the 拢5bn, 900,000m2 waterfront mixed-use development in Belfast, which is under construction
  • Cost consultancy on Trinity Leeds, a 90,000m2 retail and leisure project in Leeds city centre
  • The tallest building in Saudi Arabia, which will be 385m and is known as the Crystalline Tower

Webster said: 鈥淭he projects are still there, but clients are committing to projects on a stage-by-stage basis. Revenue is down because of falling market costs and a falling volume of business. But in the circumstances of the market, we have produced an encouraging set of results.鈥�

He said he was 鈥渃autiously optimistic鈥� about the next 12 months, thanks to the rejuvenating private sector and because public sector activity has not fallen as quickly as some had predicted. Public sector work accounts for about 60% of Cyril Sweett鈥檚 revenue and Webster warned that the firm would need to adapt to cope with swingeing Treasury cuts.

鈥淭he public sector held up well, and overseas revenue grew [from 15.6% of total revenue last year to 23% this year] in both the public and private sector. Clearly we need to be cautious about public sector spending in the UK. For example, in the health sector I think we are going to see project sizes getting smaller.鈥�

The results also showed that Cyril Sweett鈥檚 cash position had weakened, declining from 拢100,000 of funds to a 拢500,000 debt. Webster said the company was in negotiations to increase its banking facility to fund 鈥渇urther growth鈥�.

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