Sweett Group sells Asia Pacific and India businesses for GBP9.3m

Sweett Group, a provider of professional services for the construction and management of building and infrastructure projects, has sold its Asia Pacific and India businesses for £9.3m in cash.

The company said the sale was in line with its strategic goals to improve profitability and cash flow, reduce debt and rebalance the risk profile.

It said ongoing group net will be reduced to around £4m following completion of the sale.

Sweett also provided an update on trading and said its UK business is performing strongly in a generally buoyant market, with first-half revenue growth of 5% compared to the same period last year, and margins improving.

The company said it continues 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 strategic options for that region.

In addition, Sweett said Kim Berry, managing director of APAC, has stepped down from the board as an executive director with immediate effect. Executive director Derek Pitcher will also be stepping down from the board with effect from 31 October in light of the changes in the group’s operating and management structure following the sale.

At 1117 BST, Sweett shares were up 21% at 25.35p.