Sweett Grp Share Discussion Threads

[my retirement fund] 02/12/2015 20:45

Yea lets hope they say oh well it happened in the middle east its only filthy Arab scum so this time we let you off with costs !

That would be ideal imo

[vino] 02/12/2015 19:53

SFO - their first major success!!!

There will be no chance of a deal before the case is heard and the Judge will want to set an example

I hope they have plenty put aside for the fine

Oh dear my loss just gets bigger and bigger and the chance to recoup is - my children may benefit

[norbert colon] 02/12/2015 19:51

Jimmy

Understandable given the risk / reward ratio.

So, lets say in a few weeks time shareholders are informed that Sweett will be fined ‎£xxx. We are also informed that the MENA business is sold for ‎£xxx. There will be some exceptional costs associated with both and hopefully some net funds realised depending on the size of the fine.

The company can then start to take full advantage of its core markets incl. a order book over 3 times the size of the current market cap. The reputation with its loyal clients are very likely to remain unscathed, they will have a much improved balance sheet, they are very attractively undervalued and they no longer have loss making divisions. A lot to like.

I look forward to remaining a long term shareholder and believe patience will be well rewarded.

[my retirement fund] 02/12/2015 14:34

Well I've taken a small position I should declare.

I think it is sounding more positive however we are not quite in the position to have a decent degree of faith in them yet. Selling apac for a reasonable price a bonus and exiting the middle east in conjunction with guilt admission should look favourable to any outcome of prosecution.

There is enormous potential for shareholders here with luck on our side and if the board can prove themselves credible.

[my retirement fund] 02/12/2015 10:04

That was so leaked wasn't it ?

[ed 123] 02/12/2015 09:29

Hi Nobert Colon.

Yes, we'll see the eventual outcome with MENA.

I'm not close to CSG, but thinking I'd be nervous about having a US division. Could the US 'have a go' over the disclosure of guilt? They can be very harsh where foreign companies have erred.

If I were a holder, I'd like to see both MENA and the North American businesses go.

Europe looks good. Maybe CSG should exit the rest?

[norbert colon] 02/12/2015 09:20

Ed

Point noted but just because a business is loss making does not mean it has no value. CSG have some good clients in the region which are valuable alone and they just need to refocus their offering and get scale which an acquirer would bring.

As always the proof of the pudding is in the tasting and shareholders will just have to wait for news on the specifics of the sale.

[ed 123] 02/12/2015 09:11

Due to continued challenging trading conditions and a declining order book, the Board has decided to exit the region and is reviewing options. We will provide a further update in due course.

MENA revenue in the period was £2.6m (H1 2015: £3.3m), generating a segmental loss before amortisation of acquired intangibles of £0.8m (H1 2015: £0.7m).

If MENA is so challenging, produced a trading loss of 0.8M, and CSG want to get out, why would anyone want to buy it? Isn't it most likely that MENA will be closed down, with some cash costs and a write off of any remaining intangible assets?

[norbert colon] 02/12/2015 08:57

A mixed bag in the results here. Clearly of most interest is the update on the SFO investigation and I am pleased that this is now at and end. It is interesting that they have made an admission of an offence but it would appear this was a good outcome for them as although they are likely to get fined, they are not blacklisted from EU contracts (which was a possible outcome under the Act).

The whole issue is difficult to debate as shareholders do not have all the facts. Under the Act I understand that leniency is given if you self report to the SFO and whilst CSG did report, it could be suggested it was under duress and only in response to the WSJ article.

Did they have 'Adequate Procedures' in place at the time to prevent such cases of bribery? I believe possibly not given that shareholders have been informed that processes have been much improved since the case came to light. Do they have adequate procedures in place now - I believe we can say 'yes' with absolute certainty and this (albeit after the event) will be looked at positively by the SFO.

Size of fine - unknown but my personal opinion is that it will be manageable, based on all known facts.

Prosecution of directors - unknown. A lot of the original board have now moved on which is good news.

I have added to my holding this morning off the back of a much leaner and cleaner business which is Europe focused and has a great order book. MENA business sale will negate ongoing losses and further reduce the legacy issues as well as helping reduce debt further.

I still anticipate a significant rerating of the shares over the next 2 years.

[spooky] 02/12/2015 08:28

Obviously the admission of guilt leaked out last week.

[eezymunny] 02/12/2015 08:19

From wikipedia "The crime of a commercial organisation failing to prevent bribery is punishable by an unlimited fine. In addition, a convicted individual or organisation may be subject to a confiscation order under the Proceeds of Crime Act 2002, while a company director who is convicted may be disqualified under the Company Directors Disqualification Act 1986"

So outcome completely unpredictable.

My guess is that fine not big enough to sink them, but who knows?

[battyliveson] 02/12/2015 08:08

Sounds as if they are grasping the problem and have a clear strategy. Hopefully SFO penalty will not kill company. Sensible focus on UK and US markets. I will continue to hold and add when it is clear to market that this is through the worst. May take a little time yet.

B

[norbert colon] 27/11/2015 15:15

Yes there does appear to be some large trades going through this week and I would expect to potentially see an RNS next week. The current circumstances of the pending results, MENA business strategic review and ongoing / overhanging SFO investigation is clearly unsettling a lot of investors and understandably so.

Certainty is needed to bring stability.

[my retirement fund] 27/11/2015 13:50

This is a leaky ship history has shown this many times. Its the nature of the beast. Thousands of staff posted around various offices in comuni with email and phone desk to desk. News soon leaks. Joe Soap always last to know.

[jimmywilson612] 27/11/2015 12:05

Can't see anyting - Volume is massively higher than usual - maybe someone knows something?

[spooky] 27/11/2015 09:06

Sharp fall here this morning, has there been any press/media comment that i have missed?

[jimmywilson612] 18/11/2015 13:15

hxxp://www.sweettgroup.com/news/sweett-group-wins-education-property-consultants-at-educationinvestor-awards/

"Last year, Sweett Group worked on over 200 university and college projects, and we are proud to be working for 75% of the leading UK universities (working for 18 of the 24 Russell Group universities). Our work in primary and secondary education has almost doubled in turnover since the last financial year."

[mickharkins1] 03/11/2015 08:05

Norbert,

What is your expectation regarding the SFO case - have you looked into any similar cases against other companies to get a feel for the possible punishment if the company are found guilty?

I like the look of the company and the strategy to focus on the growing profitable western markets - if the threat of litigation is removed I could see the share price being a multiple of the current price.

Cheers,

Mick

[norbert colon] 30/10/2015 07:38

RPS acquire Iris Environmental for 1.3 x sales, 6 x PBT or 5.5 x NAV.

They also acquire EIG Ltd for 1.1 x sales, 5.6 x PBT or 25 x NAV.



WYG have also been shopping and bought themselves North Associates for 1.7 x sales, 10 x PBT or 14 x NAV.



Once the SFO investigation has been resolved, CSG could be a serious bid target given the huge discounted valuation compared to their peers.

[norbert colon] 22/10/2015 12:24

If anyone is interested:

[jimmywilson612] 21/10/2015 19:23

Well I thought 4m. Shows what I know!! Good positive update so I have bought in.

I recruit for these guys, mostly Quantity Surveyors. They have good market reputation and hopefully a focus on the UK market will be a good strategy

[cc2014] 21/10/2015 18:40

only 2 posts on such a good day?