Sweett Grp Share Discussion Threads

[norbert colon] 08/3/2016 13:54

Jimmy

Thanks for the feedback but I need to correct you....



Also Quantity Surveyors measure and 'quantify' (price) a design which is typically produced by others unless the company (such as Atkins) can offer design and QS services under the same roof.

If they are involved in a Design & Build (D&B) project, the design will then be done by the contractor (or their appointed designer) but again not by CSG who will instead be providing other services as noted above.

Hope that helps

[jimmywilson612] 08/3/2016 13:35

Norbert, having recruiting into the sector, technically they do do 'design' in Quantity Surveying, Design & Build projects.

An example can be found here: hxxp://www.sweettgroup.com/project/city-south-phase-3-birmingham-city-university/

:-D

[norbert colon] 08/3/2016 13:18

Whum. CSG don't do building 'design' - suggest check out their website for a list of the consultancy services that they offer. This includes cost consultancy, project management and QS etc. They work with designers such as WTM, ATK, AUK and the like. Hope that helps.

[whum] 08/3/2016 12:56

i hope there building design skills are better than their accounting abilities
i was anticipating a steady climb in the share price
my target is 36.5 to break even

[norbert colon] 08/3/2016 08:35

Slightly out of left field this latest news and very unwanted given recent circumstances. Just very bad timing although difficult to assess which party it will fall in favour of. Probably wise to assume it wont fall in CSG's favour.

[simon gordon] 08/3/2016 08:03

Jeez, more uncertainty and cost.

[ed 123] 08/3/2016 07:55

Further damage to their reputation today.

Would you do business with them?

[mickharkins1] 08/3/2016 07:53

My guess is that today's news most likely explains the CFO's departure! The sale contract sounds like a bit of a shambles.

[rhomboid] 06/3/2016 09:07

Thanks Norbert that is a fascinating insight , it seems to me that the previous mgt didn't want to implement the type of controls needed to avoid improper payments. One can only speculate why...

I'm going to ask a few questions of a few other companies I hold to make sure that they are aware of this case.

Thx again

[norbert colon] 06/3/2016 08:26

Quite a comprehensive summary of the recent SFO investigation and court case / sentencing. http://www.cms-lawnow.com/ealerts/2016/02/sweett-group-plc-first-conviction-for-bribery-act-corporate-offence

[jimmywilson612] 04/3/2016 09:26

It will take time for investors to rebuild trust in this company, need a nice steady year to really start this moving forward, will be at these levels for now and for the rest of the year in my opinion

[norbert colon] 04/3/2016 09:15

Not totally surprised to see Patrick step down as CFO as during the court case it was evident that payments to North Property Management with respect to the bogus sub-consultancy agreement were ongoing even during 2015 and signed off by the CFO.

CSG's defence was that the legal advice they received (allegedly from Mayer Brown at that time although not confirmed) was that if they failed to make these payments they would be in breach of contract with North Property Management.

As the Judge said, this was a subject of morals rather than the potential commercial implications taking precedence. Unfortunately for Patrick he bears some responsibility having continued to sign off the payments especially when the company is under investigation.

I assume he has had to fall on his sword.

This is just my personal views only.

[my retirement fund] 03/3/2016 22:55

One things for sure, this is now a known quantity so at the present market cap I imagine there are a number of suitors running the slide rule over the business.One way or the other it cannot languishing at the present price forever.

[norbert colon] 03/3/2016 22:38

If only investing was that simple, however, I agree with the principle that CSG are undervalued although time will be needed for that to show through. I was buying Waterman at sub 40p back in 2012 and nobody was interested after the recession and given various issues that they had. Personally I see numerous similarities between CSG and WTM including:

- Long standing, well known, reputable businesses (put CSG's old CSI business to one side....)
- Enviable blue chip client base
- UK / Europe focus (now APAC and MENA businesses are sold / closed)
- Emphasis on staff / people, inward investment, graduates etc. People want to work for them.

Quality businesses with great clients and people will (generally...) always come good especially when pushing against an open door as per the current UK economy.

It will be interesting to see where we are 12 months from now.

[my retirement fund] 03/3/2016 22:00

Could easily be worth north of 60p then. Good info thkx

[norbert colon] 03/3/2016 21:49

News of interest re: further sector M&A:

Well known Architect and Engineer BDP bought by Nippon Koei (who previously tried to buy Hyder) for very healthy 1.26 x sales.

hxxp://www.globalconstructionreview.com/companies/japanese-engineer-nippon-koei-b7uys-u7k-archit7ect/

Howard Humphries (200 staff Africa based consultancy business) bought for what appears to be 1 x sales.

hxxp://www.cnbcafrica.com/news/east-africa/2016/03/03/atkins-foothold-in-africa-with-acquisition-in-east-africa/

In contrast, CSG is valued at circa 0.30 x sales

[my retirement fund] 01/3/2016 15:19

Businesses like these must look very very cheap compared to US counterparts. Particularly with sterling ever falling.

[norbert colon] 01/3/2016 15:07

You have to ask yourselves as an investor how much would I be willing to pay for long standing UK business with 500+ staff (mainly fee earners), each earning around GBP65,000 of revenues per annum?

Yes, they have debt but its manageable.

What is of more interest is the staff expertise and client list and I would be happy to put my neck on the line and suggest that a 'market' valuation GBP 15m undervalues this business considerably and is a drop in the ocean for some of CSG's peer group (both UK and internationally) who I suggest would be foolish not to be taking a long hard look at the proposition.

[my retirement fund] 01/3/2016 13:32

Growing volume

[my retirement fund] 26/2/2016 13:48

Sweet Group has been sentenced at Southwark Crown Court and ordered to pay £2.25m, which is made up of a £1.4m fine and a £851,000 confiscation order. Costs of £95,000 were also awarded to the Serious Fraud Office (SFO).

Cheating Arab scum:

A spokesperson for Khaled Al Badie said: “Mr Al Badie strongly denies any wrongdoing. Any engagement was under a properly constituted legal contract…̴1;He has no knowledge of the motivation behind the agreement between Sweett Group and the SFO.”

[whum] 25/2/2016 11:14

surprised at the price reation

[my retirement fund] 23/2/2016 11:12

Guess will have to wait for a trading update in April to get clarity.

[spooky] 22/2/2016 17:02

They definitely need a placing/rights issue.

[my retirement fund] 22/2/2016 16:51

It would be a very brave bank to be extending further credit facilities at this stage given its recent track record, the liabilities, fines and intangibles. I rather suspect it was the bank who forced the boardroom sweep last year under the threat of pulling credit.