News blog

Sweett Group

• BY: Andrew Hore |
• POSTED: 20/02/2013 |

Property and infrastructure services provider Sweett Group has the highest order book it has ever had thanks to strong demand in Asia Pacific. 

The order book is worth £102m with one-third in the UK and two-thirds overseas.  The order book is 10% higher than at the end of September 2012 all of the growth outside of the UK.

Cost savings have been made. Net debt is forecast to be £10.1m at the end of March 2013, falling to £7.5m at the end of March 2014.

At 19p a share, Sweett is valued at £12.9m. The current share price reflects the slump in profit in the year to March 2012. On the face of it, there should be a strong recovery in profit from £700,000 to £3.5m - just below the 2010-11 profit of £3.7m. However, this year’s forecast includes a £1.2m gain on the sale of PFI assets in the first half so the underlying profit is likely to be nearer £2.3m. There could be further PFI disposals in the second half.

The shares are trading on seven times prospective 2012-13 earnings, falling to six the following year.

A forecast dividend of 0.8p a share provides a yield of 4.1%. 

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFFebruary2013_41.pdf