Consultant’s outgoing chairman reports the UK market outlook is “bright”
The outgoing chairman of Sweett Group has said the outlook in the UK market is “bright”, as the firm’s margins in the country improved to nearly 11%.
Speaking at the firm’s annual general meeting (AGM) later today Sweett chair Michael Henderson will say the firm “continues to make encouraging progress”.
Henderson will be replaced as Sweett chairman by former Kier chief executive and current Severfield non-executive chairman John Doods at the end of the AGM, as previously announced by Sweett.
Henderson will say: “The UK market continues to be robust and currently is our most established and promising market. UK margins are improving to nearly 11% and the group is benefitting from clients committing to a greater level of long term contracts.
“Our recognised leadership in the retail and health sectors, together with the traction we are gaining in the UK energy and infrastructure sectors, makes the UK outlook particularly bright.”
Henderson will say the firm’s “strong regional presence” is allowing Sweett to benefit from “an increase in work outside of London and the South East”.
Recent wins for the firm include jobs on the BBC HQ in Cardiff (pictured), the Brent Cross Shopping Centre redevelopment for Hammerson and further projects on the Hinkley Point nuclear plant.
He will report the firm’s order book currently stands at £107m, up from £103m at this time last year.
He will say: “We are growing the business in a number of regions which requires us to balance a need for additional working capital whilst continuing to vigorously pursue improvements in lock-up.”
However, Henderson will also warn growth in the Asia Pacific region has “started to slow” because of the “sentiment in the wider economy” in the region. He will add: “In India the anticipated acceleration of the economy, post the national elections, has yet to gain any momentum.”
Hederson will confirm the firm will “continue with its strategy to limit its future activity levels” in the Middle East, which will impact its “short term performance” in the region.
He will also say there is yet to be any conclusion in the Serious Fraud Office’s investigation into bribery allegations relating to Sweett’s historic operations in its Middle East office, originally reported in the Wall Street Journal.
He will say: “The investigation into the allegations made in the Wall Street Journal in June 2013 continues. As yet no conclusions have been reached.”
No comments yet