Consultant posts 拢1.6m profit for first half of the year as cost-cutting and sale of PFI assets boosts performance
Consultant Sweett Group has reported pre-tax profit of 拢1.6m in it half year results, with revenue up marginally to 拢37.7m.
Posting its results for the six months to 30 September 2012, Sweet group said it had returned to profit in the first half of the year, after posting a 拢200k pre-tax loss for the same period last year and a 拢1m pre-tax loss for 2012.
The firm reported revenue of 拢37.7m for the period, up from 拢36.1m for the same period last year.
The firm said the firm was now enjoying the full benefit of restructuring undertaken last year, which had resulted in 拢2m of annualised cost savings. It added that the divestment Plymouth LIFT and Inverclyde Schools PFI projects had generated 拢1.2m of the profit reported for the period.
The firm said its order book now stood at 拢92m, up from 拢90m at 31 March 20123, of which 40% is in Europe and 54% is in the Asia Pacific region.
In its full year results for 2012, the firm posted a 拢1m pre-tax loss, with its share price taking a tumble as it said it . Revenue for the year was flat at 拢72.8m.
The improved performance comes just weeks after Sweett said its chief executive Dean Webster
Sweet group chairman Michael Henderson said: 鈥淭he improved trading performance was in-line with management鈥檚 expectations.
鈥淚n Europe we continue to benefit from the restructuring actions completed last year, whilst our investments in the energy and infrastructure sectors have resulted in a number of major commissions.
鈥淲e have refocused our Middle East business and have returned to profitability.
鈥淭he Group鈥檚 main target growth market remains Asia Pacific although we are seeing a slowdown in China due to the slowing economy.
鈥淒iversifying our service offering and sector expertise and cross-selling opportunities throughout the whole of the region is, however, starting to provide benefits. In Australia we are re-aligning our business to the more vibrant private sector, which includes direct investors from China.
鈥淭he benefits of the Group鈥檚 global footprint are also evidenced by the order book鈥檚 balance, with a pick-up in bidding activity across all regions.
鈥淎lthough net debt increased from the year end due to an increase in receivables, particularly in China, we have kept well within our banking covenants.
鈥淭he business is diverse in terms of the geographies and sectors within which it operates. Although margin pressure continues to depress the trading performance in some regions, including China and Europe, we are nevertheless seeing an encouraging improvement in the financial performance of the Middle East.
鈥淲e are focused on operating within our banking arrangements with further benefits from PFI disposals. The first half performance, successful entry into new sectors, forward order book and our continuing PFI/PPP asset disposal programme point to a stabilisation of the Group鈥檚 fortunes and improving medium term prospects.鈥�
No comments yet