Cyril Sweett FY09 Profit Declines

7/1/2009 5:03 AM ET

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(RTTNews) - Wednesday, Cyril Sweett Group Plc (CSG.L: News ), a provider construction and property consultancy services, announced preliminary results for fiscal 2009, reporting a decline in profit, despite a 26% increase in revenue.

Profit before tax for the year was GBP 2.20 million compared to GBP 5.86 million a year ago. After adjusting for exceptional expenses, including restructuring costs, bad and doubtful debt provisions and vacant property costs, profit before tax increased slightly to GBP 5.96 million from GBP 5.86 million.

Profit for the year declined to GBP 1.63 million or 2.8 pence per share from GBP 4.05 million or 7.8 pence per share in the previous year. On an adjusted basis, earnings per share was 7.6 pence compared to 8.3 pence last year.

For the year, revenue increased 26% to GBP 78.91 million from GBP 62.70 million last year.

By geography, UK and Ireland sales increased to GBP 66.63 million from GBP 59.81 million. Other overseas sales rose significantly to GBP 12.27 million from GBP 2.90 million.

Under tough construction market conditions, the company took restructyring actions between November 2008 and February 2009. The cost of right sizing the business amounted to GBP 1.5 million. Further exceptional costs of GBP 1.8 million and GBP 0.5 million were recognised for bad debt provisions and onerous leases respectively.

The company's contracted order book stands at GBP 74 million compared to GBP 86 million last year.

Looking forward, Cyril Sweett anticipates the retail and commercial markets to remain uncertain and UK public expenditure to slow down from early 2010.

The company proposed a final dividend of 1.5 pence per share, which together with the interim dividend totals 2.4 pence per share, which is same as last year. The final dividend will be paid on September 18, 2009 to shareholders on register at August 21, 2009.

CSG closed Tuesday's regular trading at 31 pence on the London Stock Exchange.