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Cyril Sweett profits squeezed despite jump in revenue

Consultant Cyril Sweett today recorded a 26 per cent rise in revenues for the year – but has had its profits cut in half.

The company today announced its unaudited preliminary results for the year ending 31 March in which it posted revenues of £78.9 million, up from £62.7 million in 2008.

But its pre-tax profit plummeted – reflecting the significant squeeze on company margins amid the global recession.

The firm recorded a profit of only £2.2 million, down from £5.86 million last year.

But in a statement, the company boasted it had a “strong balance sheet with no net debt.”

It also said it had a forward order book of £74 million, down only about 14 per cent on 2007/08.

Cyril Sweett chief executive officer Dean Webster said: “We have seen another good underlying trading performance despite the tough market conditions.

“We responded quickly and decisively in the second half of the year to adapt and adjust the business to the downturn, by matching our personnel levels to our expectations for the year ahead. The management team, which has experience of running businesses through previous recessions, remains confident that Cyril Sweett is well placed to gain market share during the current economic downturn and is well positioned to benefit when its markets improve, particularly since the business remains financially strong with net cash.”

The firm said it expected the retail and commercial markets to remain “uncertain for some time” and for there to be some slowdown in UK public expenditure from early 2010.

In response, it said, it would continue to diversify its operations and target stronger economies overseas while it waits for the UK market to recover.

Cyril Sweett provides quantity surveying, project management, management consultancy and specialist services across the UK, Europe, the Middle East, India and Australasia.