Construction and property consultancy Sweett Group has generated £1.6m in cash from its involvement in the Leeds Social Housing project.
The financial close of the project means that Sweet can recover costs of £800,000 and sold its 25% stake in the project for a similar amount.
Sweett reported a strong recovery in its figures for the year to March 2013 and it has strong order book valued at more than £100m.
Around three-fifths of the order book is for regions outside of Europe and management believes that Sweett is gaining market share. Sweett continues to grow organically and adding experienced employees.
The 2012-13 profit figures differ depending on whether gains on the disposal of PFI investments are included. Excluding these, the underlying profit figure nearly quadrupled to £2.3m. Revenues improved from £72.8m to £80.6m. Asia Pacific was the fastest growing region and the Middle East returned to profit.
Net debt was £7m at the end of March 2013 and the figure is expected to fall to £6.2m by the end of March 2014. There are three remaining PFI-related investments but they are small and the debt reduction does not assume any cash from disposing of these assets.
The dividend was doubled to 1p a share and this provides a yield of 4.3%.
The shares are trading on seven times prospective 2013-14 earnings. The NAV is £28m, including intangible assets of £19.1m.
At 23.5p a share, Sweett is valued at £15.9m.
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