well positioned  
for growth
sweett group plc 
annual report and accounts 2014 for more information about  
our projects and services
 wwwsweettgroupcom
 twittercomsweettnews
 linkedincomcompanysweettgroup
 facebookcomsweettgroup
we are a global provider of professional services 
for the construction and management of building 
and infrastructure projects
we have an integrated network of 58 offices in 18 countries across 
five continents offering cost consulting and project management 
our services support clients through every stage of the project life 
cycle based upon our international expertise and local knowledge 
our strength is our people’s worldclass talent and expertise 
through which we have time and again delivered exceptional 
results the strategy builds on these key strengths
a modern progressive company sweett group sets itself apart 
through people culture and aptitude to change by collaborative 
practices and innovative thinking – supported at all levels – our 
clients receive an offering that is constantly evolving and improving 
in response to project needs
vision
our vision is to be the natural choice for property and infrastructure  
professional services delivering excellence with enthusiasm
values
 integrity
 professionalism
 collaboration 
 clarity
 respect
 success
for more information
p12 contents
strategic report
 our highlights 02
 at a glance 04
 chairman’s statement 06
 chief executive’s review 08
 business review 08
 market overview 10
 our values 12
 our business model 13
 review of operations 14
 strategy in action – europe 18
 strategy in action – meai 19
 strategy in action – apac 20
 key performance indicators 21
 financial review 22
 risk management 26
 corporate responsibility 28
governance
 governance 30
 chairman’s governance letter 31
 board of directors 32
 corporate governance 34
 directors’ remuneration report 37
 report of the directors 43
 statement of directors’ responsibilities  47
 independent auditors’ report  48
financial statements
 consolidated income statement 50
 consolidated statement of comprehensive income 51
 consolidated balance sheet 52
 company balance sheet  53
 consolidated statement of changes in equity  54
 company statement of changes in equity  56
 consolidated and company statements of cash flows 2014  57
 notes to the financial statements  58
other information
 full service offering 98
 company information  99
dean webster
chief executive officer
 our strategy continues to deliver strong 
results as the group continues to grow 
organically and crosssell services across  
our global client base”
“
financial statements and notes are  
supported by further supplementary 
information from page 98
the board is focused on longterm 
sustainable growth and continued  
high operating standards
p08
p30
p50 
strategic report governance financial statements
sweett group plc annual report and accounts 2014 01 894
revenue
£m
2013 2014 2012
806
728
274
net assets
£m
2013 2014 2012
279
288
49
adjusted operating 
profit
£m
2013 2014 2012
43
16
106
lockup
days
2013 2014 2012
103
100
54
adjusted profit 
before tax
£m
2013 2014 2012
37
07
50
adjusted earnings 
per share
pence
2013 2014
2012
37
05
23
operating profitloss
£m
2013 2014
2012
23
02
28
basic earningsloss
per share
pence
2013 2014
2012
19
21
28
profitloss before tax
£m
2013 2014
2012
18
10
13
dividend per share
pence
2013 2014 2012
10
05
our highlights
financial highlights 
in terms of fulfilling its objective to develop  
a global footprint the group has come a 
long way in the last five years and is now 
over 1500 people spread across over 50 
offices during this period the group has 
adopted a model of local delivery bases  
with local people who understand their local 
markets as our network has developed 
we are much more able to service global 
clients in multiple locations 
gaap measures
nongaap measures
how we have performed
highlights
revenue up
profit before tax up
59
basic earnings per share up
47
dividend per share up
30
net debt down
gaap measures 2014 2013
revenue £894m £806m
operating profit £23m £23m
profit before tax £28m £18m
net assets £274m £279m
net debt £63m £71m
basic earnings per share 28p 19p
dividend per share 13p 10p
non gaap measures 2014 2013
adjusted ebitda £71m £52m
adjusted operating profit £49m £43m
adjusted profit before tax £54m £37m
adjusted earnings per share 50p 37p
lockup 106 days 103 days
   before performance share plan psp charges and associated costs of £06m  
2013 £nil and exceptional administrative expenses of £15m 2013 £15m
  before amortisation of acquired intangibles of £05m 2013 £05m psp charges  
and associated costs of £06m 2013 £nil and exceptional administrative expenses  
of £15m 2013 £15m
 lockup is measured as the aggregate days’ activity represented by debtors  
and work in progress – see financial review for further details
adjusted operating profit includes the profit on investment activities of £12m 2013 
£14m adjusted ebitda and profit before tax also include the profit arising on the 
change in fair value of the derivative financial instrument £10m 2013 loss of £03m 
109
11
02 sweett group plc annual report and accounts 2014 operational  
and outlook highlights
  order book up £9m at £109m despite 5  
negative impact of sterling appreciation
  global platform delivering results – success  
in crossselling on a global basis
  move into uk energy and infrastructure sectors  
gaining traction up 145 in last year
  powerful recovery in traditional uk market
  continued investment in staff – now 1535 up 10 
senior appointments made in all regions awarded 
investors in people accreditation
for more information
p14
strategic report
03 sweett group plc annual report and accounts 2014
governance financial statements our network of 58 offices in 18 countries across five continents offers  
cost consulting and project management services to clients that connect 
seamlessly supporting clients through every stage of their projects’ lifecycle  
with international expertise and local knowledge our strength is our 
people’s worldclass talent and expertise through which we have time  
and again delivered exceptional results
 joint venture office
what we do
sweett group is a global business with expertise  
in property and infrastructure professional services  
we provide clients with global expertise coupled  
with local sector knowledge to maximise success  
our approach is to ensure each project is resourced  
by professionals with expertise in that sector
where we operate
sweett group has a network of offices across africa 
america asia australia europe and the middle east  
our geographic reach enables us to provide our clients  
with a full range of all our services whilst delivering local 
knowledge and global excellence
at a glance
our service areas
 advisory services
 building surveying services
 contract solutions
 programming and time related analysis
 project management
 property and development services
 quantity surveyingcost management
 specialist services
 urban and regional planning
revenue by sector 2014
 commercial offices  industrial 172
 defence 05
 education 85
 energy waste  utilities 30
 health 147
 hotel  leisure 75
 life sciences 15
 other public sector 73
 retail  mixed use 100
 residential 135
 transport  infrastructure 163
north america
locations
boston
los angeles
new jersey
new york city
washington dc
for a full list of sweett services
p98
sweett group plc annual report and accounts 2014 04  joint venture office
employees
1 535
senior appointments made in all  
regions investors in people  
accreditation achieved 
offices
58
crossselling our services across our network 
of offices by enhancing our relationships 
with global corporate companies 
order book
£9m
despite 5 negative impact  
of sterling appreciation
countries
18
sweett group has a network of offices 
across america asia australia europe 
and the middle east 
europe
2014 revenue
£493m
15
2013 £427m
locations
aberdeen
belfast
birmingham
bristol
cambridge
cardiff
coleraine
dublin
edinburgh
exeter
glasgow
hull
leeds
liverpool
london
madrid
manchester
newcastle
norwich
oxford
plymouth
southampton
truro
employees
496
asia pacific
2014 revenue
£286m
10
2013 £260m
locations
bangkok
beijing
brisbane
changsha
chengdu
chongqing
guangzhou
guiyang
ho chi minh city
hong kong
kuala lumpur
macau
melbourne
singapore 
shanghai 
shenyang 
shenzhen 
sydney 
tianjin 
tokyo
wuhan 
employees
783
meai
2014 revenue
£116m
3
2013 £119m
locations
abu dhabi
bangalore
chennai
colombo
delhi
dubai
mumbai
muscat
riyadh
employees
256
strategic report
sweett group plc annual report and accounts 2014 05
governance financial statements chairman’s statement
michael henderson
chairman
read more about your chairman
p32
it has been a year of great progress for  
your company we have a business with an 
integrated offering a global network of 58 
offices in 18 countries across five continents 
and our operating markets have improved  
we have gained important market share  
and the geographic sectorial and personnel 
diversity scale and shape of the business  
have enabled us to benefit from this improving 
trend in the form of increased profitability 
driven by mainly organic growth
the uk market specifically has improved 
with the economy now growing at nearly 
3 a year which is encouraging for  
sweett group as our uk business remains 
our largest and most established entity 
accounting for over 50 of group turnover 
in the year ended 31 march 2014 i am 
pleased to report that the uk business  
is gaining market share as in particular  
our investment in the infrastructure and 
energy sectors has paid off in addition 
great progress has been made with larger 
international clients many of which are  
now using sweett group across several 
regions which is a gratifying trend and 
which is taking us into new markets
we are two years into our three year strategic 
plan which i am pleased to report has been 
extended by a further year to account for the 
considerable progress made to date and the 
improving markets particularly in our more 
established geographies such as the uk 
as one of the few remaining players who can 
offer a truly independent service with global 
capability we are in a solid position to benefit 
from the improvements which we see and 
we are well placed to build on the strong 
foundations for the next phase of our growth 
with a wellestablished uk and european 
business and a scale position in apac  
a segment which has almost doubled in size 
over the last three years and is approaching 
critical mass the ceo’s review which follows 
this statement goes into more detail around 
the group’s strategy to 2016
financial performance
revenue for the year was up 109  
to £894m 2013 £806m and profit  
before tax was up 59 to £28m 2013 
£18m after exceptionals amortisation of  
acquired intangibles and net finance costs 
stripping out the one off benefit of £10m 
from the unwinding of the australian hedge 
contract the £12m financial close of leeds 
social housing and the sale of hub north 
underlying profits were £32m up 23 
2013 £26m whilst operating margins 
were down slightly year on year at 26 
2013 29 basic earnings per share  
was up 47 to 28p 2013 19p
net debt at the yearend was further reduced 
to £63m 2013 £7  1m and well below the 
peak of £11m in 2012 much focus has  
been put on improving our working capital 
management with a priority being placed 
specifically on our needs in apac 
sweett group plc annual report and accounts 2014 06 nonexecutive directors
executive directors
chairman
4
1
3
0 – 2 years
3 – 10 years
10 years
25
25
50
construction
finance
other
50
375
125
governance
board composition
board of directors
michael henderson 
chairman
dean webster 
chief executive officer
patrick sinclair 
chief financial officer
derek pitcher 
managing director
kim berry 
managing director
nicholas woollacott 
nonexecutive director
roger mabey 
nonexecutive director
david wilton 
nonexecutive director
for more information
p32
the directors have recommended a final 
dividend of 08p per share 2013 07p 
which will make a total dividend of 13p for 
the year an increase of 30 2013 10p 
illustrating the board’s confidence in the 
future of the group
wall street journal allegations
the company has made announcements 
regarding allegations made in the wall street 
journal in june 2013 of improper business 
conduct by a former employee of the group 
operating in the middle east discussions are 
ongoing with the serious fraud office sfo 
in the uk and with the department of justice 
doj in the us the group is cooperating 
with both these organisations and no 
proceedings have been issued by either  
of them the group has commissioned  
a further independent investigation into  
the allegations by mayer brown llp 
in response to the allegations made in  
the wall street journal the company  
has identified the need to further improve  
our internal controls and risk procedures 
particularly in locations where we have fewer 
numbers of staff a separate governance 
function has been created which will work 
closely with our finance function the audit 
committee and our internal auditors kpmg 
most importantly all our clients and staff 
remain loyal and the underlying business  
is not affected
people
in january 2014 we welcomed patrick 
sinclair to the board as chief financial 
officer patrick has already made a positive 
contribution to the business in addition  
a number of senior level appointments  
were made during the year including philip 
watt joining as company secretary in 
september 2013 
we continue to grow our team and evolve 
employment practices and policies to 
ensure we are able to attract and retain  
the best talent and i was delighted that 
sweett group received “investors in people” 
accreditation in the uk during the year 
we have an exceptional team of people and 
our success is due to their professionalism 
creativity and commitment i would like to 
thank the sweett group team in particular 
for their hard work and commitment
tenure
experience
i would also like to thank my board and senior 
colleagues for their help and support during 
my four years as chairman we experienced 
extreme recessionary conditions in our 
traditional markets and various setbacks in 
the first three years but with a clear strategy 
combined with the professionalism of my 
executive colleagues around the world  
we have seen the group through this difficult 
period i therefore leave at the forthcoming 
annual general meeting with a certain 
amount of pride in what has been achieved 
by them also leaving with me at the annual 
general meeting will be nick woollacott  
a nonexecutive director who has served  
on the board with great distinction for  
the last seven years and latterly as the 
senior independent director nick has  
led the nominations committee in 
choosing my successor as chairman  
and an announcement on this appointment 
will be made shortly
outlook
the group is trading well as we continue to 
gain market share and leverage the benefits 
of our global network while benefiting from 
the improving economic environment in 
some of our key markets as we move 
forwards with an order book of £109m  
an improving margin trend and a tighter 
focus on working capital the board looks 
to the future with increased confidence
michael henderson
chairman
30 june 2014
strategic report
sweett group plc annual report and accounts 2014 07
governance financial statements chief executive’s review
dean webster
chief executive officer
business review
strategy update
we have an integrated network of  
58 offices in 18 countries across five 
continents offering cost consulting  
and project management our service 
supports clients through every stage  
of the project life cycle based upon  
our international expertise and local 
knowledge our strength is our people’s 
worldclass talent and expertise through 
which we have time and again delivered 
exceptional results the strategy builds  
on these key strengths
we have built a global delivery platform 
having maintained an integrated business 
with a common culture of client service 
the strategy to build the global platform 
was launched against a background  
of weak home markets in the uk  
with limited resources to stretch across  
a wide geography the group undertook 
to focus on debt reduction and operating 
margin improvement together with the 
reallocation of capital towards our fast 
growth operations by disposing of our 
ppp investments since this strategy  
was first outlined we have sold out of six 
ppp investments releasing in excess of 
£7m of capital which has been invested in 
growing market share in the uk growth in 
apac which has virtually doubled in size 
in the last three years and in reducing debt 
which is down from a peak of £11m in 2012
in many areas we have achieved 
outstanding success and in extending  
our strategic plan we have reviewed  
every aspect of the business and the 
markets in which we operate
one such opportunity is the recovery in  
our home uk markets last year i reported 
that we wanted to “increase our market 
share in our traditional sectors whilst 
expanding further into the energy and 
infrastructure markets” our strategy 
appears to have been well timed not only 
have we increased our market share  
in these new areas but we have also 
experienced a general market recovery  
in areas where our business has always 
been traditionally strong both margins  
and profitability are up year on year  
further scope exists to increase both of 
these as we are still some way off the peak
in this section
   business review – strategy update
 market overview
 our values and business model
 review of operations – group financial performance
 strategy in action
 key performance indicators
the group has now successfully delivered  
on the first two years of its three year strategic 
plan given the success we have achieved  
the board has evolved and extended the 
group’s strategy in anticipation of continued 
changes in our market environment 
sweett group plc annual report and accounts 2014 08 plan to 2015 extended plan 
integrated global approach
develop a global corporate  
client base with the ability to  
deliver locally
introduction of account management specialists to continue enhancing  
our relationship with global corporate organisations
offer a consistent quality of service  
based upon international standards  
whilst sympathetic to local  
market conditions
having achieved iso 9001 investors in people accreditation agresso erp  
system roll out and project management tool kit programmes continue with  
training and process controls platforms across the group
attract and develop key people in  
new sectors and new geographies 
thereby extending our sector expertise  
and service coverage
sweett people have grown in numbers by 7 pa in the last two years  
continue to attract new people at similar levels growing with cash flows
regional expansion
europe – increase our market share  
in our traditional sectors and expand 
further into the energy and infrastructure 
markets extend our client base across 
continental europe
further organic growth across our core services with continued expansion into energy 
and infrastructure markets
leverage our strength in private and public sectors to capitalise on our growing 
market share and recovery of uk activity
play heavily on our position as independent and specialist provider when set against  
a growing number of multidisciplinary businesses
further invest in efficiency in support costs and service delivery utilisation to outweigh 
increasing wage inflation further contributing to the net margin
middle east africa and india – 
capitalise on the economic recovery in  
the uae and expand our operations in 
saudi arabia and into oman and qatar 
extend our presence in india from four  
to six regional offices
limit middle east to 10 of group revenue – continuing to focus on improving  
the breadth and quality of its client base concentrating main activity in uae  
oman and qatar
controlled organic growth in india extending our sector coverage and  
geographic expansion
asia pacific – leverage our existing  
range of services across our existing  
client base whilst extending our 
geographic coverage and sector  
expertise extend our exposure  
to new sectors in australia
china – controlled expansion of qs offer until lockup reduces organic growth of pm
hong kong – target higher margin larger qs projects organic growth of pm  
dispute resolution and programming services
south asia – singapore – organic growth of pm in line with market conditions  
and extension of qs service offer continue development of the thailand operation  
as opportunities arise
australia – organic growth and targeting of larger higher margin projects
north america – develop our 
relationships with our alliance partners  
and provide clients with qs expertise  
on both the east and west coasts 
continue to develop our joint venture business organically by concentrating on 
developing all five offices with the joint pmqs offer by targeting existing client base 
and for international cross referral business
the theme of the strategy going forward  
is to leverage the global platform we have 
created encouraging crossselling into 
new geographies with our larger clients 
we will be placing more emphasis and 
capital investment into the uk business  
to continue to grow margins and our 
market share we plan to improve risk 
management in the middle east and focus 
on a few core markets whilst limiting the 
middle east to 10 of the group’s total 
turnover and improving margins in india 
we have a strategy for managed growth 
having established a sizeable business  
in apac the ongoing focus will be to  
grow from that base by using regionally 
generated cash flows managing working 
capital in apac and across the business 
will remain a strategic priority the table 
below outlines some of the specifics of 
the strategic evolution
strategic report
sweett group plc annual report and accounts 2014 09
governance financial statements us62bn 
building projects collectively  
amounting to us62bn awarded
6 
uk output growth of circa 6 pa 
in each of 2015 2016 and 2017
chief executive’s review 
continued
market overview
europe
coming off the back of a long and deep 
recession the uk construction industry  
is now growing and activity levels have 
significantly improved we believe this 
growth is sustainable as output is 
currently still 14 below peak in 2007 
construction forecasts both in terms of 
volumes and pricing are being revised 
upwards as the uk economy grows 
whilst there continues to be a marked 
difference geographically there is now 
evidence to support a recovery in many 
regional cities outside london and the 
south east industry forecasts when 
measured against a 2012 base are 
predicting output growth of circa 6 pa  
in each of 2015 2016 and 2017 and cost 
consultancy and project management 
services come at the front end of the 
cycle the strongest areas are likely to be 
private commercial and industrial private 
housing and infrastructure all sectors 
where we have expertise the legacy of 
the recession for our industry is the lack  
of human resource capacity available to 
meet rising demand and whilst this will 
create a challenge for us to attract and 
retain the best people it will provide an 
opportunity for us to improve margins it is 
interesting to note that we are now seeing 
a trend beginning to emerge particularly 
in the uk market where clients are placing 
increasing emphasis on choosing firms 
which have the right people and right 
experience as opposed to just on price
middle east africa  
and india
middle east the gulf cooperation council 
gcc governments are expected to 
maintain relatively high levels of spending 
underpinning growth in the nonoil sectors 
of their economies while continuing  
to post substantial budget and current 
account surpluses this is yielding a 
healthy economic growth averaging  
43 which is most evident in the 
construction and infrastructure arena 
having always been the largest sector  
in the gcc with building projects 
collectively amounting to us62bn 
awarded and us67bn completed in 
2013 both figures are estimated to  
rise to nearly us75bn and us128bn 
respectively this investment particularly 
in the areas of housing education and 
healthcare is being driven by substantial 
population growth at the same time 
private sector real estate is showing signs 
of a comeback after the dubai real estate 
crash in 2009 this improved economic 
scenario coupled with a surge in travel 
has led to a strong growth in the 
hospitality sector with hotels witnessing 
record highs in the revenue per available 
room in anticipation of major global 
events being hosted in the region an 
estimated 45000 additional hotel rooms 
are required in qatar and an estimated 
need for 140000 – 160000 new rooms 
by 2020 to host the world expo in dubai 
india in 2013 the overall gdp growth  
was less than 5 as against the expected 
level of about 8 to 9 and there was  
a slowdown in the construction industry 
however with a stable government being 
formed in may 2014 there is positive 
market sentiment overall and there are 
indications of better growth prospects in 
the construction industry the projected 
gdp growth for 2014 is 55 and the 
expectation is that real estate market 
activity will pick up in the second half of 
this financial year when the policy reforms 
such as relaxing foreign direct investment 
fdi norms and the introduction of reits 
are implemented the housing sector 
which is a significant contributor to overall 
economic growth is expected to grow  
by about 15 this year other than the 
housing sector the commercial and retail 
sectors are also expected to witness 
reasonable growth in 2014 
sweett group plc annual report and accounts 2014 10 us18tn 
china is the world’s largest 
construction market at us18tn
asia pacific
development and construction activity in 
asia pacific varied across the geographies 
serviced by the group with activity in china 
remaining a major influence for the region  
as a whole 
prior to 2013 china’s construction market 
which is the world’s largest at us18 trillion 
and with an 18 global share grew at  
over 20 pa but slowed considerably 
during the year as a result of central 
government policies aimed at dampening 
property prices and a general tightening  
of credit medium to longterm industry 
growth is forecast to sustain at around  
7–8 per annum with immediate prospects 
for the first half of 2014 remaining uncertain 
as the economy transitions through the 
changes noted above 
the slowdown in china has to a lesser 
extent affected our regional markets  
hong kong’s private sector workload has 
eased over the period but public sector  
and infrastructure work areas in which the 
group is particularly strong are in a period  
of high activity in singapore our established 
sectors of corporate real estate and hospitality 
have seen a relatively flat year but were 
bolstered by the addition of new local and 
regional work in hitech and data centres 
our business in thailand has been impacted 
by the recent political problems particularly 
with regard to foreign investor sentiment  
but longterm prospects for growth of  
the us33 billion thai economy remain 
encouraging at around 5 per annum
australia’s us220 billion construction 
market grew by 10 during the year but 
is forecast to drop by 4 in 2014 principally 
as a result of reduced demand for resources 
the contraction is partly offset by increased 
domestic demand particularly in the 
residential sector our established sectors  
in healthcare local government and aged 
care were subdued in 2013 partly due  
to local and national elections but are 
expected to resume normal activity levels 
regional investment in infrastructure  
and built assets particularly from china 
present opportunities for the group in the 
short to medium term while defence 
spending a sector in which we continue  
to be active has increased under the recent 
federal budget
the region’s second largest construction 
market at us742 billion is in japan  
where the group is in a joint venture 
international interest in our principal sectors 
of corporate real estate and hospitality has 
recently increased partly in anticipation of 
the forthcoming olympic games in 2020  
in the medium term we anticipate higher 
levels of activity for the group incountry  
and also with japanese businesses 
operating outside japan
the group is examining new regional 
markets in vietnam indonesia malaysia  
and myanmar all of which have construction 
sectors growing in excess of 4 pa and 
attracting significant international interest 
however in line with our current strategy  
of organic growth any investments will be  
of a limited nature and structured to become 
quickly financially selfsustaining 
 
revenue
europe
£493m
meai
£116m
apac
£286m
strategic report
sweett group plc annual report and accounts 2014 11
governance financial statements chief executive’s review 
continued
our values
we have a common set of values across the business 
and are putting in place systems to ensure these values 
come to life group values which are being rolled out in 
each of our 58 offices are 
integrity
  we believe in honesty transparency and 
fairness and expect the same from those  
with whom we do business we deliver  
on our promises
professionalism
  we take pride in our work striving to  
surpass the highest standards we invest  
in the continual development of our people  
our success is achieved by their inspiration 
commitment and dedication
collaboration
  we believe in working constructively as a  
team with our clients colleagues and industry 
partners creating a platform for innovation  
and added value
clarity
  we believe in clear communication providing 
trusted independent advice whilst maintaining 
openness throughout our business
respect
  we believe in treating the people communities 
and environment around us with respect and care
success
  guided by these values we believe our clients 
staff and investors will share in our success
find out more
more can be learned about our values and 
business model by visiting our refreshed 
website at wwwsweettgroupcom
sweett group plc annual report and accounts 2014 12 global knowhow
many of our clients are global – and so is 
our business our network of offices covers 
the world’s main trade and business hubs 
our geographic reach enables us to provide 
clients with a full range of integrated services 
wherever they need them
local delivery
we use our global knowhow to deliver local 
sustainable solutions our geographic 
presence allows us to recognise local 
constraints and challenges gearing our 
services to each client bringing in resources 
from across the group as necessary
longterm relationships
we optimise our clients’ investment through 
a deep understanding of their business 
built over many years this means that 
we can ensure projects are delivered on 
time and on budget
our business model
our business model is at the heart of everything we do  
our services are aimed at helping to maximise the value of 
our clients’ investment through the efficient management  
of time and resources
to achieve this our approach is always the same – to become a partner  
with our clients and deliver costefficient timely solutions sweett group is  
one of the few players in our markets able to deliver an independent service 
strategic report
sweett group plc annual report and accounts 2014 13
governance financial statements europe
meai 
apac 
558
473
526
92
388
59
june 2013 june 2014
1
2
3
4
5
6
7
8
9
10
11
1 commercial offices  industrial 250
2 defence  06
3 education  110
4 energy waste  utilities 20
5 health 93
6 hotel  leisure 73
7 life sciences 04
8 other public sector 35
9 retail  mixed use 116
10 residential 200
11 transport  infrastructure 93
chief executive’s review 
continued
order book versus prior year
£m
order book split by year
fy15
£52m
fy16
£24m
fy17
£34m
review of operations
group financial  
performance
revenue for the year was up 109  
to £894m 2013 £806m and profit 
before tax was up 59 to £28m 2013 
£18m after exceptionals psp charges 
amortisation of acquired intangibles and 
net finance costs 
stripping out the one off benefit of £10m 
from the unwinding of the australian hedge 
and the £12m profit on the financial close 
of leeds social housing and hub north 
underlying profits were £32m up 23 
2013 £26m for the first time shareholders 
will note there is a full year charge of £06m 
for the performance share plan which has 
been disclosed separately in the consolidated 
europe 
109 
revenue for the year was up  
109 to £894m 2013 £806m
55 
percentage of group revenue
europe 55
meai 13  
apac 32
revenue from europe which comprises  
the group’s operations in the uk ireland 
and continental europe was up to £493m 
2013 £427m accounting for 55 of the 
group’s total revenue segment profits 
preexceptional administrative expenses 
and amortisation were £57m 2013 £37m 
the european business has improved  
with net operating margins advancing from 
7  1 to 109 this remains below peak 
margins of 1 16 in 2008 the order book 
stands at £53m 2013 £39m an increase  
of some 36 year on year clients are  
now committing to longterm spending 
plans and giving approval to major 
income statement basic earnings per 
share were up 47 to 28p 2013 19p and 
preexceptional operating margins at 55 
were up 2 2013 53 this remains 
considerably below peak operating margins 
of 93 achieved in 2008
our current order book stands at a record 
£109m 2013 £100m despite a negative 
foreign exchange impact of 5 over the 
period non gaap adjusted profit before 
tax was £54m 2013 £37m and adjusted 
earnings for the year were 50p per share 
2013 37p
net debt at the yearend was further  
reduced to £63m 2013 £71m and well 
below the peak of £1 1m in 2012 much focus 
has been put on improving our working 
capital requirements particularly in apac 
working capital remains a principal focus 
for the executive team 
the directors are recommending a final 
dividend of 08p per share 2013 07p 
which will make a total dividend of 13p  
for the year an increase of 30 2013 
10p illustrating the board’s confidence  
in the group’s future prospects
sweett group plc annual report and accounts 2014 14 europe
meai 
apac 
558
473
526
92
388
59
june 2013 june 2014
1
2
3
4
5
6
7
8
9
10
11
1 commercial offices  industrial 250
2 defence  06
3 education  110
4 energy waste  utilities 20
5 health 93
6 hotel  leisure 73
7 life sciences 04
8 other public sector 35
9 retail  mixed use 116
10 residential 200
11 transport  infrastructure 93
order book by sector

construction projects rather than the  
phased commitments of recent years  
the order book is reinforced by an 
extremely robust pipeline of potential 
projects and framework income yet  
to be formally committed
the business operates across a diversified 
range of private and public sectors
our investment into the energy and 
infrastructure sectors has been rewarded 
with appointments on the nnb genco  
ltd nuclear framework network rail 
frameworks for both england  wales  
and scotland and the transport for  
london framework our exposure to  
the sector increased fivefold in the year  
as we continue to build market share
the retail sector in which the group is  
a recognised leader has seen a further 
improvement in activity over the period  
the group has secured commissions at  
the major developments at the whitgift 
centre croydon and brent cross shopping 
centre we currently have an involvement  
in over 40 mixed use retail developments  
our retail portfolio is balanced with a number 
of projects directly with retailers such as 
selfridges working on their flagship stores 
in manchester birmingham and london  
the rollout of primark stores in spain portugal 
france the uk and most recently supporting 
them on their push into the usa another 
success is our recent appointment to the john 
lewis and waitrose consultant panel
the offices sector both for developers  
and corporate end users has seen an 
upswing in activity extending from london 
into most regional cities significant clients  
in this sector include bnp paribas barclays 
rbs and the bbc
in the hotel and leisure sector the group has 
been very active with hilton and marriott 
and as client representative for the landmark 
shangrila hotel in the shard the prospects 
for the leisure sector remain strong with  
a number of museums gallery and stadia 
projects in the pipeline significant schemes 
worked on include the tate st ives gallery 
extension and a project for merlin 
entertainment in istanbul
the group maintains a strong market 
position in the health education and life 
sciences sectors all areas which have 
seen continued investment over the last  
12 months health schemes have included 
the royal hospital chelsea university 
college london hospital moorfields eye 
hospital and king’s college hospital 
london the education sector continues 
to present a large range of opportunities 
and we are currently working with more 
than 20 universities with notable schemes 
at cambridge imperial robert gordon 
and manchester universities
the group operates from a wide  
range of offices throughout the uk  
giving us the advantage of local 
knowledge and delivery capability  
this plays a particularly important role 
when being considered for projects 
procured under national framework 
arrangements sweett group has a  
wide range of experience to draw from 
providing services on over 200 current 
public sector frameworks on a national 
regional or local basis including the 
ministry of justice london construction 
programme nhs shared business 
services and waste and resources  
action programme
the culture of the organisation is based  
on maximising value for our clients by 
putting their needs first much of this 
culture is driven by the people we employ 
and the training we provide in addition  
we continue to innovate our delivery 
processes which this year has included  
the development of a building information 
modelling bim programme and through 
our participation in the rapiere embedded 
energy modelling tool we are developing  
a valuable measure of the sustainability  
of entire property portfolios
strategic report
sweett group plc annual report and accounts 2014 15
governance financial statements chief executive’s review 
continued
middle east africa  india asia pacific 
revenue from the middle east and india 
meai accounted for 13 of group revenues 
at £116m 2013 £119m segment profits 
preexceptional administrative expenses 
and amortisation were £01m 2013 £13m 
and the order book is £92m 2013 £60m
in meai we have seen a pickup in bidding 
activity as market conditions continue  
to improve this trend is anticipated to  
be maintained over the medium term 
nevertheless as part of our risk 
management and margin improvement 
strategies the middle east operations 
have been through a year of transition  
to derisk the business in the longer term
we aim to be more selective in the work 
we undertake we will concentrate on our 
levels of service delivery repeat clients  
and local market reputation as part of the 
plan to limit our turnover to no more than 
10 of total group turnover the focus  
of attention is on the uae and the new 
office which has recently been opened  
in oman our position in qatar is being 
developed but on a low risk low cost 
strategy profits were impacted by 
reducing our dependence on very large 
projects together with certain legacy 
issues but these are now close to being 
worked through and any future effects 
minimised our repeat work with clients 
such as dubai airports etihad airways 
saudi aramco and jumeirah continues  
to grow and we are delighted to be 
working for major developers such  
as mubadala and emaar 
the group’s performance in india continued 
to be encouraging with growth in the  
year faster than anticipated india now 
employs over 150 people across the 
region headquartered in chennai with 
regional offices in bangalore mumbai 
delhi and hyderabad we have strengthened 
our position to be a leading provider of  
qs services with a panindia presence 
and have an extremely strong platform to 
continue to grow long term whilst there 
has been some recent market slowdown 
delhi and bangalore were the strongest 
performers particularly in the commercial 
and it sectors elsewhere the residential 
market did experience a short dip but this 
is now expected to recover once the new 
government implements its plans to grow 
the economy at a faster pace again 
revenue from asia pacific accounted  
for 320 of group revenues at £286m 
2013 £260m segment profit before 
exceptional administrative expenses and 
amortisation of intangibles were £13m 
2013 £06m and the order book stands 
at £47m 2013 £55m primarily due to a 
foreign exchange impact of £5m of these 
numbers the group’s operations in china 
and hong kong contributed approximately 
£208m of revenues and £10m of net 
profit the segment’s operating margin  
of 45 remains satisfactory given the 
continued levels of investment in new 
resources dedicated to the region
during the year the apac business 
reported several significant new commissions 
including cost management of the £400m 
huawei dongguan rd centre in china 
around £1800m of hotel and casino 
development work in macau a series  
of commissions related to the early stages 
 
percentage of group revenue
32 
percentage of group revenue
europe 55
meai 13  
apac 32
europe 55
meai 13  
apac 32
13 
sweett group plc annual report and accounts 2014 16 outlook
during the year the group continued  
to perform strongly whilst it benefited 
from one off gains from the unwinding  
of the australian hedge contract and  
the financial close of leeds social 
housing the underlying performance 
was considerably better than the 
previous year
trading in the first few months of  
the year has been encouraging and  
this momentum is expected to be 
maintained as the group benefits from 
its wider geographical platform the 
diversified nature of our sector coverage 
and the improving trading conditions  
in its home markets based on an 
improving order book and pipeline  
the prospects for turnover growth and 
margin improvement remain on track
i would like to take this opportunity  
on behalf of the entire sweett group 
team of thanking mike henderson  
and nick woollacott who both leave at 
the annual general meeting mike has 
been with the group for the last 16 years 
both as a nonexecutive director and 
more latterly as chairman during his 
four years as chairman of the board  
his leadership guidance and support 
have been exceptional nick has been 
with the group since our ipo and he  
has added considerable expertise and  
wise counsel during his time as non
executive director we wish them  
all the best for the future
of the £11330m major expansion to  
the airport in hong kong project 
management of the helicopter aircrew 
training system for the department of 
defence in australia and programming 
services for the £700m highways link  
to the hkzhuhaimacau boundary 
crossing in hong kong looking ahead 
we anticipate continued growth for our  
pm and programming services in asia  
and china and a sustained level of 
demand for our cost management work
after several years of exceptionally high 
growth our short to mediumterm asia 
pacific regional strategy is to restrain 
further expansion to levels that are 
financially sustainable and to upgrade  
and consolidate our management systems 
across the region over the year we have 
strengthened our processes for reducing 
lockup established a process for cross
border invoicing with our china offices 
implemented the group’s erp system 
across australia south asia and hong 
kong with china to follow in mid2014 
enhanced our management team by adding 
new directors in project management 
programming and hr and centralised  
the region’s it and marketing support 
services the australian business was 
restructured during the year and a closer 
regional integration is in place to address 
the increasing demand for regionally 
integrated services 
 
north america
our 5050 joint venture company vva 
sweett inc continues to make headway  
we now have five joint venture offices in  
new york boston new jersey washington 
dc and los angeles the business is  
trading profitably and income and margins 
are growing steadily
in the us there is an increased awareness 
of the value that an independent quantity 
surveyor can add to a project clients are 
now requesting additional services not 
typically provided in the us where quantity 
surveying is now being recognised
the construction market in the us is 
growing again and this is reflected in  
the increased activity and number of  
bids vva  vva sweett have made  
and been awarded during the past  
year of particular note are projects for  
condé nast time inc and weil gotshal  
in new york and cooley and viacom in 
los angeles following our work for 
primark in the uk and continental europe 
we are assisting them with the rollout of 
their stores within the usa
there have been a number of cross 
referrals of transatlantic projects  
with two pharmaceutical schemes for 
biomed in the united kingdom and 
schemes in los angeles london and 
tokyo for jefferies
strategic report
sweett group plc annual report and accounts 2014 17
governance financial statements for more information
p14
strategy in action
europe
refocus investment on the uk opportunity in both  
our traditional and infrastructure markets
strategy in europe
  organic growth across our core services with continued  
expansion into infrastructure and energy markets
  leverage our strength in private and public sectors to capitalise  
on our growing market share and recovery of uk activity
  play heavily on our position as independent and specialist  
provider when set against a growing number of  
multidisciplinary businesses
  further invest in efficiency in support costs and service  
delivery utilisation to outweigh increasing wage inflation  
further contributing to the net margin
  build from the “bottom up” to improve utilisation and create  
a generation for the future
award winning  
trinity leeds
gross floor area
87 000m
2
the 87 000m² trinity leeds 
fulfils the city’s ambition to 
become the region’s retail 
powerhouse the project has 
created a stunning new axis  
a retail and leisure destination 
uniting three of leeds’ primary 
shopping streets under a 
spectacular sweeping glazed 
roof it is anchored by an 
existing ms store with several 
restaurants and a speciality 
cinema offer
trinity leeds’ ground breaking 
focus on enabling a digital 
experience is borne out  
by interactive video walls 
ipadenabled customer  
service mobile apps free  
wifi and a crm system  
all seamlessly integrated
sweett group provided a 
comprehensive range of 
services including cost 
management employers’  
agent project management 
and retail delivery on this 
extremely challenging project 
located in the heart of leeds 
city centre
strategic priorities
 strengthen existing uk teams
 capitalise on investment in energy and infrastructure
 build commercial offer
 invest in systems and marketing 
chief executive’s review 
continued
18 sweett group plc annual report and accounts 2014 for more information
p16
strategy in action
meai
continuing to build on the strength of our local 
relationships and reputation 
strategy in meai
  limit middle east turnover to 10 of group revenue  
– the business is continuing to focus on improving  
the breadth and quality of its client base
  concentrate on uae oman and qatar service all other  
locations on a project by project basis for key clients or  
if strategically important
  continue to use sri lanka as a support unit to drive 
competitiveness while seeking to exploit the rapid growth  
in the hospitality sector locally
  controlled organic growth in india moving to second tier cities
four seasons  
abu dhabi
this prestigious 5 deluxe hotel 
set in the heart of al maryah 
island within the sowwah 
square district will bring a mix  
of quality accommodation  
and branded residences  
all designed with understated 
luxury that is synonymous  
with the four seasons brand 
the hotel also comprises a 
massive ballroom a 250m² 
banquet room and conference 
facilities three signature 
restaurants and a twostorey 
retail podium 
sweett group is acting as 
mubadala’s independent cost 
consultant to actively manage 
the postcontract phase of this 
challenging development 
gross floor area
100000m
2
strategic priorities
 drive organic growth across our operational offices
 financial discipline and region specific operational strategies 
strategic report
19 sweett group plc annual report and accounts 2014
governance financial statements for more information
p16
strategy in action
apac
high levels of synergy across the regional business  
will enhance business development offering our 
services across our network of offices by enhancing 
our relationships with global corporate companies
strategy in apac
  measured growth and focused diversification  
reduce lockup pursue higher margins and regional clients
  china – controlled expansion of qs organic growth of pm  
overall expansion 5 pa
  hong kong – target higher margin larger qs projects organic 
growth of pm dispute resolution and programming services
  south asia – singapore – limited growth of pm dictated by  
market conditions organic growth of qs thailand high growth  
of pm and qs
  australia – organic growth target larger higher margin projects
global switch hong kong 1  
data centre
gross floor area
53000m
2
global switch’s new hong kong 
data centre is located on the t seung 
kwan o industrial estate in the sai 
kung district of hong kong located 
close to the major submarine cable 
landing stations and all of the key 
business districts this world class 
tier 3 hong kong data centre will 
benefit from diverse power from two 
separate incoming supplies and 
dynamic ups systems ensuring 
high availability and offering density 
solutions as standard and with  
the flexibility to meet a range of 
requirements the data centre  
will be a leading example of an 
environmentally sustainable data 
centre and will be targeting a 
leadership in energy and 
environmental design leed  
gold rating and also a hong  
kong green building council’s 
beam plus platinum rating
sweett group are the project 
managers for global switch’s new 
flagship data centre developments 
in singapore and hong kong 
providing strategic level advice on 
data centre layout and planning 
seamless and coordinated regional 
management across the both 
locations and the essential local 
knowledge and direction for the 
procurement and construction 
stages in each city
strategic priorities
 pursuing organic growth
 improvinggenerating cash
 improving margins 
  incremental improvement and integration rather than  
fundamental change 
chief executive’s review 
continued
20 sweett group plc annual report and accounts 2014 2012 2013 2014
728
806
894
revenue growth
£m
2012 2013 2014
43 43
49
operating profit
£m
2012 2013 2014
21
19
28
basic earnings per share
pence
2012 2013 2014
100
103
106
lockup
days
2012 2013 2014
90
100
109
order book
£m
2012 2013 2014
05
10
13
dividend per share
pence
key performance indicators
the executive committee sets annual objectives both financial  
and nonfinancial which focus on deliverables in support of both 
shortterm results and the overall longterm strategy a number of 
metrics are used to monitor performance these include revenue 
operating profit lockup earnings per share and order book
definitionrelevance
revenue growth is the percentage  
change from continuing group operations  
in the current year from the prior years  
this kpi measures our strategy to drive  
the business growth
progress 
our strategic plan stood us in good stead in 
2014 as the improving economy in many of 
our areas of operation gave us opportunities 
to increase our market share and penetrate 
sectors more deeply 
definitionrelevance
the level of underlying operating profit 
represents the results of the basic operating 
elements of the group’s performance 
progress 
we achieved a rise of 14 mainly as a  
result of organic growth and improved 
margins both reflecting the successful 
execution of our strategic plan 
 before amortisation of acquired intangibles psp 
charges and exceptional administrative expenses
definitionrelevance
earnings per share is a measure of the 
return generated for each holder of an 
ordinary share it is a key metric used  
by our investors in assessing whether  
we are delivering a suitable return
progress 
strong progress as the group’s financial 
performance continues to improve 
definitionrelevance
lockup is used to measure the cash 
generation of the group and how  
successful the business is at managing  
its working capital 
progress 
lockup continues to be a challenge  
in particular in asia pacific and specific 
action plans are in place to reduce this  
in the current financial year
definitionrelevance
a measure of firm contracted orders 
progress 
despite an adverse impact of £5m  
from foreign exchange the order book 
continues to increase driven in the main  
by strong growth in europe
definitionrelevance
a distribution of aftertax profits divided by the 
number of ordinary shares in issue dividends 
give shareholders a financial reward that is a 
key element in a company’s attraction 
progress 
dividend per share increased in 2014 
reflecting strong earnings and cash 
performance the targeted dividend policy 
continues to be 3 times preexceptional pbt 
adjusted for oneoff items where appropriate
strategic report
sweett group plc annual report and accounts 2014 21
governance financial statements financial review
patrick sinclair 
chief financial officer
group revenue was £894m 2013 £806m 
profit before taxation after the impact  
of £15m of exceptional administrative 
expenses £06m charge for the performance 
share plan and £05m of amortisation  
of acquired intangibles as described in  
note 5 amounted to £28m 2013 £18m 
this profit includes the income on sale of 
the group’s interests in the hub north pfi 
project and profit generated at financial 
close of the leeds social housing pfi 
project the group’s derivativebased 
currency cover in respect of australian 
dollar exposures was cash settled for 
£04m resulting in a credit of £10m to  
the income statement
revenue for the year increased by 109 
to £894m 2013 £806m net revenue 
after deduction of subconsultant costs 
was £77 9m 2013 £724m
adjusted profit before tax increased by  
46 to £54m 2013 £37m pretax profit 
was £28m 2013 £18m after exceptional 
administrative expenses performance share 
plan charges and amortisation of acquired 
intangibles and net finance income
adjusted operating profit was £49m 2013 
£43m and the adjusted operating profit 
margin was 62 2013 53 operating 
profit amounted to £23m 2013 £23m and 
operating margins were 26 2013 29
adjusted earnings per share were 50p 
2013 37p basic earnings per share  
were 28p 2013 19p and diluted earnings 
per share were 27p 2013 19p
our current order book is approximately 
£109m an increase from last year’s reporting 
date of 9 2013 £100m despite a negative 
impact of exchange rates of £5m
in presenting the group’s adjusted  
profit opposite amortisation of acquired 
intangible assets performance share  
plan costs and exceptional administrative 
expenses have been excluded so as to 
assist understanding of the underlying 
performance of the group
trading performance
the group’s financial performance was further 
improved during the year ended 31 march 2014 
in comparison with the previous year in terms of 
revenue adjusted operating profit profit before 
taxation and net debt it was also marked by the 
completion of the hub north disposal the financial 
close of the leeds social housing pfi project 
and the renegotiating of our banking facilities
2014
£’000
2013
£’000
operating profit 2310 2340
add back
amortisation of acquired intangibles 457 480
psp charges and associated costs 609 –
exceptional administrative expenses 1523 1455
adjusted operating profit 4899 4275
finance income 1007 170
finance expense 491 735
adjusted profit before taxation 5415 3710
analysed as to
core trading 3234 2593
change in fair value of derivative  
financial instrument 970 272
profit on investment activities – 1389
net fee income on financial close of leeds 
social housing and exiting our position on 
hub north note 13 1211 –
5415 3710
sweett group plc annual report and accounts 2014 22 core trading profit which excludes the 
change in fair value of the derivative and  
the profit on investment activities increased 
by 247 to £32m 2013 £26m
the primary segmental analysis in note 3  
to the financial statements details the 
segmental revenue and result in aggregate 
the group’s gross margin increased from 
288 to 307 which is encouraging
details of exceptional administrative 
expenses are provided in note 5 to  
the financial statements exceptional 
administrative expenses of £1523000 
2013 £1455000 comprised in the main 
costs associated with the investigation 
regarding allegations made in the wall 
street journal in june 2013 of £490000 
restructuring costs of £978000 2013 
£812000 and interest payable to the 
vendors of widnell limited of £55000 
2013 £356000
sterling appreciated during the year 
against all the group’s major currencies 
being the hong kong dollar chinese 
renminbi uae dirham indian rupee  
and australian dollar the negative impact 
of this strengthening was approximately 
£29m on revenue and negligible on 
operating profit
cash performance
cash generated from operations was £57m 
2013 £22m this arises largely through 
profit earned and improvements in working 
capital management the group’s work in 
progress net of fees in advance increased  
to £7 755000 2013 £6333000 and gross 
receivables decreased to £23039000 2013 
£24263000 overdue amounts decreased 
to £7 843000 2013 £8536000 and there 
was a slight reduction in the amount of debt 
impaired to £1620000 2013 £1722000 
the lockup calculation measures the  
number of days’ activity included within 
work in progress and trade receivables 
incorporates an annualisation of revenues 
based on the last three months’ revenues 
lockup days at yearend were 106 days 
2013 103 days management of working 
capital is a key issue as the group continues 
to expand particularly in the asia pacific 
region and further steps are being taken  
to improve its management and reduce 
unnecessary utilisation of the group’s  
cash resources specific action is in hand 
to release funds held in mainland china
key performance indicators
a number of metrics are used to monitor 
financial performance these include 
turnover operating profit cash collection 
preexceptional administrative expenses 
earnings per share and lockup all of these 
key performance indicators improved in  
the last year with the exception of lockup 
the latter continues to be affected by  
a retention balance of £10m 2013  
£10mon a project in the middle east  
the unprovisioned element of two trade 
receivables in dubai of £05m 2013  
£05m and by a number of projects in 
china and hong kong which are subject 
to milestone billing arrangements 
underlying profit margins
the gross profit margin was 307  
2013 288 on gross revenue and 
353 2013 321 on net revenue  
and the operating profit margin was 26 
2013 29 the operating profit margin 
before exceptional administrative expenses 
psp charges and amortisation of acquired 
intangibles was 55 2013 53
finance income
the group’s net finance incomecost  
is disclosed in note 4 this changed  
from a net cost of £565000 in 2013 to  
a net income of £516000 in 2014 largely 
due to the £10m credit arising on the 
termination of aud111m derivativebased 
currency contract
within this total finance income from 
availableforsale financial assets reduced 
from £132000 to £34000 as a result of the 
continued sale of these incomegenerating 
assets and finance cost reduced from 
£735000 to £491000 largely as a result  
of the prior year charge of £272000 relating 
to the group’s aud111m derivativebased 
currency contract
strategic report
sweett group plc annual report and accounts 2014 23
governance financial statements financial review
continued
banking facilities
the group funds its activities through 
cash generated from operations and 
supplemented where necessary and 
appropriate with bank borrowings and 
asset funding
the group’s principal banker is bank  
of scotland plc part of the lloyds banking 
group which provides sweett group with 
overdraft term loan and contract guarantee 
facilities as well as a guarantee facility to 
secure obligations to third parties
at 31 march 2014 the amount undrawn 
under the group’s credit lines was £23m 
2013 £30m amounts drawn under  
the term loan are shown as noncurrent 
liabilities to the extent that repayments are 
due after 31 march 2015 all other liabilities 
to bank of scotland plc and overseas 
banks are shown as current liabilities  
all banking covenants were met during  
the financial year and at 31 march 2014
the bank of scotland plc facility 
agreements contain four separate financial 
covenants being
•  net worth shall not at any time be less 
than £25m
•  the ratio of ebitda to total interest 
shall not at any time be less than 41
•  the ratio of net operating cash flow to 
bank debt service on each test date 
shall not be less than 111 and
•  the ratio of total net debt to ebitda 
shall not at any time exceed 2751
during the year facilities were negotiated 
with hsbc in china and hong kong 
these comprise an accounts receivables 
facility in hong kong of £14m and a loan 
facility in hong kong secured against 
renminbi deposits in china of £08m
tax
the charge for the year was £932000 
being 330 of the profit before taxation 
2013 £476000 being 268 the reasons 
behind this movement are analysed further 
in note 7 
earnings per share
basic earnings per share amounted to 28p 
2013 19p and fully diluted earnings per 
share were 27p 2013 19p taxadjusted 
earnings per share prior to exceptional 
administrative expenses and performance 
share plan charges were 50p 2013 37p 
balance sheet
the group ended the year with
•  net borrowings of £63m compared 
with £71m at 31 march 2013
•  net assets of £274m compared with 
£279m at 31 march 2013
•  work in progress net of fees in 
advance of £78m compared with 
£63m at 31 march 2013 and
•  trade receivables of £215m compared 
with £227m at 31 march 2013
we continue to invest particularly in it 
equipment and software to ensure that  
as the business environment becomes 
more complex and technology evolves 
the group’s it systems and equipment 
are kept uptodate and properly serve 
the business 
group revenue
£894m
revenue increase
109
gross profit margin
307
current order book
£109m
sweett group plc annual report and accounts 2014 24 going concern
a detailed examination of the group’s 
cash flow and trading forecasts has been 
undertaken to enable the board to 
conclude that the group can operate 
within its banking covenants such that  
it could be established that the group 
should continue to prepare its financial 
statements on the going concern basis 
the group’s bankers have confirmed  
that in the normal course of events  
the overdraft facility will be replaced on 
expiry late in the 2014 calendar year
material considerations in a forward  
look at covenant compliance include
•  the assumption that a retention  
balance of £1m on a middle east 
contract will be recovered during  
the current financial year
• working capital
• profitability
internal controls
in the established parts of the group  
there are well developed policies and 
procedures to support a sound internal 
control environment these policies 
continue to be rolled out across the 
enlarged group further systems 
enhancements over the next year  
based on the completion of the group 
rollout of our agresso erp system  
with only china remaining will further 
strengthen internal controls as a 
temporary measure more intense 
management review processes are in 
operation until such time as the rollout  
is completed the corporate governance 
section of this report outlines further 
issues of internal control within the group
treasury
treasury matters and banking arrangements 
are overseen by a treasury committee 
which is chaired by the group chairman
dividends
an interim dividend for the year to  
31 march 2014 of 05p per share at a  
cost of £342000 2013 03p per share  
at a cost of £203000 was paid on  
17 january 2014 to all shareholders  
on the register on 20 december 2013  
the directors are recommending a final 
dividend of 08p per share at a cost 
assuming no issues of shares in the 
intervening period of £549000 2013  
07p at a cost of £474000 which  
if approved by the shareholders at the 
annual general meeting will be paid on  
12 september 2014 to all shareholders  
on the register on 15 august 2014  
a dividend reinvestment service is 
available through the registrar
employee benefit trust
the group’s employee benefit trust ebt 
is a separately administered discretionary 
trust in jersey for the benefit of employees 
shares owned by the ebt are shown as  
a reduction in capital and reserves as 
treasury shares the ebt has not held any 
of the company’s shares since january 
2011 and consideration is being given to 
winding up the trust
share incentive plan
the share incentive plan sip originally 
launched in february 2001 enables uk 
resident employees to acquire shares  
in the group out of untaxed income  
and provides a taxefficient means for 
employees to own shares dividends 
received by the plan in cash are used to 
purchase additional shares on behalf of 
employees shares held in the plan which 
have not been allocated to individual 
employees are shown as a reduction in 
capital and reserves as treasury shares
summary
sweett group’s trading performance  
has improved during the year under 
review and having exited the remaining 
investment businesses and renegotiated 
our banking facilities the group is in  
a more robust position going into the  
new financial year 
 
patrick sinclair
chief financial officer
30 june 2014
strategic report
sweett group plc annual report and accounts 2014 25
governance financial statements risk management
sweett group embed the consideration  
of risk across the full scope of their policies  
and procedures 
a central register is maintained which brings together the range of  
risks and uncertainties that the group is exposed to many of which  
are common to other companies operating in similar market segments  
the register is reviewed on a regular basis and in addition risk is 
specifically considered in the annual business planning process and  
at key investment decision points the corporate risk register highlights  
any regional variations in exposure levels and each item is linked to a  
lead risk owner responsible for monitoring the risk item and ensuring 
controls are effective residual risk is evaluated enabling the board  
to make judgements around tolerability and the cost effectiveness  
of further mitigation 
risk description mitigation
strategic
economic and  
market conditions
changes to economic and market conditions can have an impact on the level of construction sector spend and the 
competitive pricing pressures these factors apply to both public and private sectors changing demand affects the 
level of resourcing required and the associated support functions to enable efficient operation and maintain 
competitiveness longerterm market trends also affect the required skill sets
our strategy is to continue to diversify our sectors services and geographies to manage the impact of change in any one area of the  
business on the whole we monitor changes in the economic climate and market conditions on a continual basis and align our strategy  
to match resourcing levels to any changes in the demand for our services
growth and 
integration
the group’s operations continue to expand both in scale and geographic reach this presents risks in the control  
and management of this growth both organic growth and that achieved through acquisition there are also risks  
to compliance and efficiency arising from any failure to fully integrate and align all areas of the business
a strong emphasis is maintained on integration and controlled growth through the various cross regional management committees  
supporting this the implementation of the company’s erp system is nearing completion and this is reinforcing a consistent approach  
to business processes as well as enabling greater transparency there is careful due diligence undertaken on potential business partners  
and acquisition targets to ensure risks are fully considered and mitigated as part of the decision making process
reputation the reputation of sweett group is fundamental to our future success our typical role in construction projects  
is one of high trust managing and advising on decisions that can have a major financial impact upon our clients  
any damage to this reputation would undermine the confidence that clients have in our ability to execute these roles 
without error and with a high level of professional integrity damage to the reputation of sweett group would have  
a significant negative impact on the ability to win new business
the board maintains a focus on quality and integrity through induction employee training their own leadership and supporting  
management systems the group operates an integrated health safety quality  environmental management system which has been  
accredited to iso 9001 additional to the control of service quality policies and procedures provide clear guidance to employees on  
the expectation of high ethical standards
finance
financial  
constraints
the primary financial risk relates to liquidity and covenant compliance the prudent management of the group’s 
funding arrangements is key to ensuring the business manages any issues that could affect considerations of going 
concern funding and liquidity also must be balanced with growth and the nature of the commercial arrangements  
the group enters into in order to have a managed and sustainable growth plan
management continually monitor the adequacy of the group’s liquidity supported by good quality management information this monitoring 
process includes day to day operational matters as well as strategically balancing growth plans with funding availability guidance is provided  
to operational management on the payment terms to be sought from clients and there are active credit management processes in place  
the arrangements in place to control the detailed financial risks are summarised further in note 28 to the financial statements
foreign  
currency risk
the group operates over a wide geographic area and there are risks associated with exchange rate fluctuations 
across these regions changes in exchange rates could affect the profitability of projects delivered by resources  
from several regions changes in exchange rates could also affect the forecast levels of profit returned from different 
regions when converted back to the group’s primary reporting currency of gbp
the majority of trading activity takes place within each legal entity thereby matching the currency of cost and income where this is not  
possible management review the level of exchange rate risk exposure and consider if it is appropriate to hedge the risk a macro analysis  
is also undertaken to look at the cumulative exposure across the business and the impact that changes would have on reporting in the  
group’s presentation currency the arrangements in place to control this risk are summarised further in note 28 to the financial statements
financial  
performance
shareholders in the business have expectations of a level of return on their investment failing to manage and meet market 
expectations could result in a reduction in the share price and a consequential impact on the ability to fund future growth
the group has a range of business processes designed to deliver a predictable and acceptable level of financial performance these are  
founded on a robust budgeting process supported by controls on capital expenditure regular forecasting of project profitability and the  
active review of monthly management accounts
operational
health safety  
 environment
the management of the health  safety of sweett group employees and those affected by our business activities is of 
the utmost importance additionally the group must comply with all relevant legislation and has a policy of minimising 
its impact on the environment wherever practicable failure to manage these risks could lead to injury or loss of life as 
well as formal action against the business for any process shortcomings
the group operates an integrated health safety quality  environmental management system which has been accredited to iso 14001  
and ohsas 18001 there is clear ownership within the business on these matters and an active audit regime to ensure compliance with  
the various systems processes and training which have been put in place an external advisor is retained and referred to where required  
to ensure the accuracy of information being used to guide decision making in this area
people sweett group is a people business the quality of our people their technical ability professional approach and  
ethical standards are all key drivers in clients entrusting us with delivery of their projects a failure to engage with  
our employees or high attrition rates can have a significant impact on efficiency there are also risks relating to 
technical quality and business conduct if employees are not fully aware of and abiding by the company’s procedures
the group seeks to attract and retain high quality staff through offering competitive remuneration adopting modern working practices and  
having a robust selection process induction procedures assist in ensuring clarity of expectations around conduct and regular performance  
reviews are aimed at maximising engagement and development the uk business has recently secured accreditation against the investors in 
people iip standard and is rolling out a number of the underlying principles of this framework globally
systems and it in common with most businesses the group is critically dependent on its it infrastructure and systems for delivery  
of its services and management of the business failure of systems or significant down time could lead to a loss of 
output a lack of reliable management information or a loss of data
a business impact analysis has been undertaken on the core systems and it infrastructure this has informed the redundancy provisions made 
backup processes and disaster recover arrangements the most critical business management systems are replicated to a separate data centre 
and the failover procedure is subject to periodic testing capital investment decision making in this area takes into account business continuity risks
sweett group plc annual report and accounts 2014 26 identification
identification of the principal 
risks and uncertainties 
that could affect 
business performance
evaluation
exploring the nature of the 
risk and evaluating different 
response strategies 
mitigation
implementation of measures 
to avoid reduce or control 
the risk to tolerable levels
monitoring
the provision of assurance 
that the mitigations in 
place are maintained 
and effective
risk description mitigation
strategic
economic and  
market conditions
changes to economic and market conditions can have an impact on the level of construction sector spend and the 
competitive pricing pressures these factors apply to both public and private sectors changing demand affects the 
level of resourcing required and the associated support functions to enable efficient operation and maintain 
competitiveness longerterm market trends also affect the required skill sets
our strategy is to continue to diversify our sectors services and geographies to manage the impact of change in any one area of the  
business on the whole we monitor changes in the economic climate and market conditions on a continual basis and align our strategy  
to match resourcing levels to any changes in the demand for our services
growth and 
integration
the group’s operations continue to expand both in scale and geographic reach this presents risks in the control  
and management of this growth both organic growth and that achieved through acquisition there are also risks  
to compliance and efficiency arising from any failure to fully integrate and align all areas of the business
a strong emphasis is maintained on integration and controlled growth through the various cross regional management committees  
supporting this the implementation of the company’s erp system is nearing completion and this is reinforcing a consistent approach  
to business processes as well as enabling greater transparency there is careful due diligence undertaken on potential business partners  
and acquisition targets to ensure risks are fully considered and mitigated as part of the decision making process
reputation the reputation of sweett group is fundamental to our future success our typical role in construction projects  
is one of high trust managing and advising on decisions that can have a major financial impact upon our clients  
any damage to this reputation would undermine the confidence that clients have in our ability to execute these roles 
without error and with a high level of professional integrity damage to the reputation of sweett group would have  
a significant negative impact on the ability to win new business
the board maintains a focus on quality and integrity through induction employee training their own leadership and supporting  
management systems the group operates an integrated health safety quality  environmental management system which has been  
accredited to iso 9001 additional to the control of service quality policies and procedures provide clear guidance to employees on  
the expectation of high ethical standards
finance
financial  
constraints
the primary financial risk relates to liquidity and covenant compliance the prudent management of the group’s 
funding arrangements is key to ensuring the business manages any issues that could affect considerations of going 
concern funding and liquidity also must be balanced with growth and the nature of the commercial arrangements  
the group enters into in order to have a managed and sustainable growth plan
management continually monitor the adequacy of the group’s liquidity supported by good quality management information this monitoring 
process includes day to day operational matters as well as strategically balancing growth plans with funding availability guidance is provided  
to operational management on the payment terms to be sought from clients and there are active credit management processes in place  
the arrangements in place to control the detailed financial risks are summarised further in note 28 to the financial statements
foreign  
currency risk
the group operates over a wide geographic area and there are risks associated with exchange rate fluctuations 
across these regions changes in exchange rates could affect the profitability of projects delivered by resources  
from several regions changes in exchange rates could also affect the forecast levels of profit returned from different 
regions when converted back to the group’s primary reporting currency of gbp
the majority of trading activity takes place within each legal entity thereby matching the currency of cost and income where this is not  
possible management review the level of exchange rate risk exposure and consider if it is appropriate to hedge the risk a macro analysis  
is also undertaken to look at the cumulative exposure across the business and the impact that changes would have on reporting in the  
group’s presentation currency the arrangements in place to control this risk are summarised further in note 28 to the financial statements
financial  
performance
shareholders in the business have expectations of a level of return on their investment failing to manage and meet market 
expectations could result in a reduction in the share price and a consequential impact on the ability to fund future growth
the group has a range of business processes designed to deliver a predictable and acceptable level of financial performance these are  
founded on a robust budgeting process supported by controls on capital expenditure regular forecasting of project profitability and the  
active review of monthly management accounts
operational
health safety  
 environment
the management of the health  safety of sweett group employees and those affected by our business activities is of 
the utmost importance additionally the group must comply with all relevant legislation and has a policy of minimising 
its impact on the environment wherever practicable failure to manage these risks could lead to injury or loss of life as 
well as formal action against the business for any process shortcomings
the group operates an integrated health safety quality  environmental management system which has been accredited to iso 14001  
and ohsas 18001 there is clear ownership within the business on these matters and an active audit regime to ensure compliance with  
the various systems processes and training which have been put in place an external advisor is retained and referred to where required  
to ensure the accuracy of information being used to guide decision making in this area
people sweett group is a people business the quality of our people their technical ability professional approach and  
ethical standards are all key drivers in clients entrusting us with delivery of their projects a failure to engage with  
our employees or high attrition rates can have a significant impact on efficiency there are also risks relating to 
technical quality and business conduct if employees are not fully aware of and abiding by the company’s procedures
the group seeks to attract and retain high quality staff through offering competitive remuneration adopting modern working practices and  
having a robust selection process induction procedures assist in ensuring clarity of expectations around conduct and regular performance  
reviews are aimed at maximising engagement and development the uk business has recently secured accreditation against the investors in 
people iip standard and is rolling out a number of the underlying principles of this framework globally
systems and it in common with most businesses the group is critically dependent on its it infrastructure and systems for delivery  
of its services and management of the business failure of systems or significant down time could lead to a loss of 
output a lack of reliable management information or a loss of data
a business impact analysis has been undertaken on the core systems and it infrastructure this has informed the redundancy provisions made 
backup processes and disaster recover arrangements the most critical business management systems are replicated to a separate data centre 
and the failover procedure is subject to periodic testing capital investment decision making in this area takes into account business continuity risks
risk management  
framework
the risk management process 
involves identifying the principal 
risks relating to the group and 
its achievement of the business 
strategy establishing appropriate 
controls to manage these risks 
and ensuring there is a robust 
monitoring regime in place
the group’s risk assessment 
process seeks to achieve an 
optimal balance between the 
cost of mitigation and the 
uncertainty or impact the risk 
presents the risk identification 
review and response process 
engages the key stakeholders 
across the business who can 
add value in risk identification or 
the implementation of controls
strategic report
sweett group plc annual report and accounts 2014 27
governance financial statements charity  
 
employee wellbeing 
 
     environment
community
corporate responsibility
at sweett group we recognise that our operations 
and services we provide have a significant impact  
on the communities and environments in which  
we operate our strategy of longterm sustainable  
growth is directly linked to our corporate social 
responsibility csr efforts
the group’s csr efforts focus on four main areas
employee wellbeing
our clients work with us because of the 
quality of our staff and the added value 
their expertise and knowledge represents 
we see our csr work as a mechanism 
for boosting morale fostering team spirit 
and encouraging healthy living all of 
which contribute to creating happier 
healthier members of staff
environment
the construction maintenance and 
operation of property and infrastructure 
developments accounts for a significant 
portion of the world’s annual carbon 
emissions our consultants play an 
important role in reducing these 
emissions by working with our clients 
to minimise the environmental impact 
of projects throughout their lifecycle
community
operating within the built environment 
we have a responsibility to ensure we 
engage with and play an active role in the 
local communities in which we operate 
we do this through the development of 
the services we offer our clients and by 
building longterm relationships with key 
local stakeholders through our community 
outreach and charitable activities
charity
the group and its staff have supported 
a number of charities across the world 
covering causes such as cancer care 
men’s health and animal welfare  
the group’s global charitable cause 
continues to be the theme of children 
and youth in the community
sweett group plc annual report and accounts 2014 28 strategic report
29 sweett group plc annual report and accounts 2014
governance financial statements the directors have chosen to give selected 
disclosures on the main principles of the  
uk corporate governance code 2012  
“the code” which the directors have  
decided to adopt in so far as is practicable  
for a business of its size and nature
the board is committed to high standards  
of corporate governance and considers  
sound governance and transparency to  
be fundamental to achieving its objective  
of enhancing shareholder value
governance
 chairman’s governance letter 31
 board of directors 32
 corporate governance 34
 directors’ remuneration report 37
 report of the directors 43
 statement of directors’ responsibilities  47
 independent auditors’ report  48
30 sweett group plc annual report and accounts 2014 board
of directors 
 
 
nominations
committee 
audit
committee 
remuneration
committee 
the
chairman 
chairman’s governance letter
board composition
michael henderson
nonexecutive chairman
dean webster
chief executive officer
patrick sinclair
chief financial officer
derek pitcher
managing director
kim berry
managing director
nicholas woollacott
nonexecutive director
roger mabey
nonexecutive director
david wilton
nonexecutive director
dear shareholder
the board is committed to maintaining the highest 
standards of corporate governance which we consider 
to be of fundamental importance to the future success 
of sweett group this commitment is demonstrated by 
our continued attention to embedding our core values 
principles ethics and risk management throughout  
the organisation during the financial year in particular 
our focus on simplifying structures across the group 
worldwide and introducing common business processes 
has enhanced the effectiveness of corporate governance
the board continued to pay significant attention to 
succession planning throughout the year in particular  
i am stepping down as chairman so the nominations 
committee has overseen the process of securing a 
successor to the role similarly the board has played  
an active part in addressing succession planning issues 
across the wider leadership team evidenced by the 
appointment of patrick sinclair as cfo in january 2014 
the board continues to take the view that it has an 
effective wellbalanced structure which includes a 
group of nonexecutives who collectively draw on a 
wealth and variety of experience thus providing for 
meaningful discussion constructive challenge and 
effective decision making
diversity is regarded as a business enabler across  
the group and the board seeks to ensure that equal 
opportunity is afforded to all regardless of gender  
age ethnic background or religious belief the board 
also believes however that of equal importance is the 
need to ensure that staff skills and competencies are 
matched to the strategic and operational needs of the 
business in our core markets
the board primarily through the activities of the audit 
committee continues to focus on ensuring that the 
group’s risk management processes which include 
clarifying roles and responsibilities throughout the 
governance structure refreshing the companywide  
risk framework training and communication are 
embedded across the entire group 
 
michael henderson
nonexecutive chairman
30 june 2014
michael henderson
nonexecutive chairman
governance
sweett group plc annual report and accounts 2014 31
strategic report financial statements board of directors
name 
and title
michael henderson fca 
frsa kchs
nonexecutive chairman
dean webster mba bsc 
frics mapm
chief executive officer
patrick sinclair ba fca
chief financial officer
derek pitcher bsc frics 
dipprojman
managing director  
europe and meai
kim berry llb hons 
mrics mhkis mciarb 
rps qs fpfm
managing director asia pacific 
paul nicholas woollacott 
bsc cigem
nonexecutive director – 
senior independent director
roger mabey cmg  
fciob frsa
nonexecutive director
david wilton ma fca
nonexecutive director
skills and 
experience
michael enjoys a long standing 
reputation for his expertise 
and network in industrial  
and financial management
dean joined the company in 
1980 qualified as a member 
of the rics in 1986 is a 
member of the association  
of project managers and  
has a henley mba between 
1995 and 2004 dean was 
responsible for steering  
the company’s project 
management business  
dean now drives the group’s 
overall strategy and the 
performance of the group’s 
overall business operations
patrick is a member of  
the institute of chartered 
accountants having qualified 
with pricewaterhousecoopers 
in 2001 he was appointed to 
the board in january 2014 as 
chief financial officer having 
joined sweett group in 2012 
as group financial controller
derek is managing director 
with responsibility for the 
group’s operations in europe 
the middle east and india  
he is a board director of the 
vva sweett joint venture in 
america is responsible for a 
number of key accounts in the 
commercial and retail sectors 
and has led the group’s  
move into the nuclear and 
manufacturing sectors 
kim joined the company in 
2010 upon the acquisition of 
widnell an asian based cost 
management consultancy of 
which he was managing 
director and major shareholder 
he emigrated to asia from the 
uk in 1980 and joined widnell 
in 1982 building the business 
from a small local practice into 
a 500man company with  
1 1 offices across hong kong 
and china he was appointed 
to the sweett group board  
in december 201 1 and is 
responsible for operations 
across the asia pacific region 
kim is a member of the rics 
hkis ciarb and holds an 
honours degree in law
a former ftse 100 executive 
director who has wide 
experience of developing 
acquiring and disposing of 
projects and businesses in the 
uk and overseas he has also 
had direct responsibility for 
running a workforce of over 
15000 people with still more 
contractors as senior 
independent director of 
enterprise plc he was involved 
in its move from the aim to  
a full listing and then later as 
chairman he oversaw its move 
into privateequity ownership 
subsequently he was similarly 
involved in the transition of 
goldshield plc from public to 
privateequity ownership
roger has a wealth of 
knowledge of operating  
in international and uk 
construction markets he has 
over 40 years’ experience in 
the construction and property 
industry he is currently  
a fellow of the chartered 
institute of building and  
a fellow of the royal society  
of arts
formerly finance director  
of both listed and private 
equity backed companies 
after nearly 20 years’ 
experience in investment 
banking primarily advising  
on midcap ma he has 
experience of a broad range  
of sectors including support 
services energy services  
and manufacturing and has  
a record of successfully 
delivering change programmes 
in both positive and challenging 
circumstances he has 
worked as a consultant
interim director on a number 
of projects
year 
appointed
appointed as nonexecutive 
director in 1998 and chairman 
in 2010
joined the board in 2000 and 
was appointed ceo in 2005
january 2014 derek joined sweett group  
in 1978 became a partner at 
the age of 30 and managing 
director of the quantity 
surveying business in 1996 
he joined the board in 2000
december 2011 november 2007 september 2003 march 2013
other 
appointments
at present michael is also 
chairman of the advisory 
board of quexco inc  
the largest lead producer  
in the world
derek is the honorary t reasurer 
of the british council of 
shopping centres and an 
active member of bco 
design and build foundation 
and also the rics commercial 
property forum
roger is the chairman for 
housing solutions limited  
and in 1997 was made a cmg 
companion of the order of  
st michael and st george  
in recognition for export 
achievement and services  
to the construction industry
david is finance director  
of bellrock a lyceum  
capital backed facilities 
management business
past 
appointments
he was managing director and 
chief executive of cookson 
group plc a former ftse 100 
company for 12 years and  
has also been a director of 
guinness mahon holdings  
plc and tioxide group plc 
he was also chairman of 
henderson crosthwaite ltd
prior to joining the group 
patrick was head of finance 
at penna plc regional 
director of finance at ncp ltd 
and financial controller at 
danone uk
kim has served on the rics 
committees for asia pacific 
education and standards and 
the hong kong qs faculty 
the hkis qs divisional 
council and is a past 
chairman of the hk 
association of consultant 
quantity surveyors
senior independent director 
goldshield plc chairman 
enterprise plc board member 
university of hertfordshire 
group managing director 
lattice plc and over  
20 more national and  
international directorships
managing director at  
bovis international ltd  
and director at bovis 
lendlease ltd
group finance director  
of wyg plc group finance 
director of adler and  
allan limited and director  
of nm rothschild corporate 
finance limited
committee 
membership 
member of nominations 
committee remuneration 
committee and audit 
committee
chairman of the  
nomination committee
member of audit  
committee and  
remuneration committee
chairman of the  
remuneration committee
member of nomination 
committee and audit 
committee
chairman of the  
audit committee
member of nomination 
committee and  
remuneration committee
sweett group plc annual report and accounts 2014 32 name 
and title
michael henderson fca 
frsa kchs
nonexecutive chairman
dean webster mba bsc 
frics mapm
chief executive officer
patrick sinclair ba fca
chief financial officer
derek pitcher bsc frics 
dipprojman
managing director  
europe and meai
kim berry llb hons 
mrics mhkis mciarb 
rps qs fpfm
managing director asia pacific 
paul nicholas woollacott 
bsc cigem
nonexecutive director – 
senior independent director
roger mabey cmg  
fciob frsa
nonexecutive director
david wilton ma fca
nonexecutive director
skills and 
experience
michael enjoys a long standing 
reputation for his expertise 
and network in industrial  
and financial management
dean joined the company in 
1980 qualified as a member 
of the rics in 1986 is a 
member of the association  
of project managers and  
has a henley mba between 
1995 and 2004 dean was 
responsible for steering  
the company’s project 
management business  
dean now drives the group’s 
overall strategy and the 
performance of the group’s 
overall business operations
patrick is a member of  
the institute of chartered 
accountants having qualified 
with pricewaterhousecoopers 
in 2001 he was appointed to 
the board in january 2014 as 
chief financial officer having 
joined sweett group in 2012 
as group financial controller
derek is managing director 
with responsibility for the 
group’s operations in europe 
the middle east and india  
he is a board director of the 
vva sweett joint venture in 
america is responsible for a 
number of key accounts in the 
commercial and retail sectors 
and has led the group’s  
move into the nuclear and 
manufacturing sectors 
kim joined the company in 
2010 upon the acquisition of 
widnell an asian based cost 
management consultancy of 
which he was managing 
director and major shareholder 
he emigrated to asia from the 
uk in 1980 and joined widnell 
in 1982 building the business 
from a small local practice into 
a 500man company with  
1 1 offices across hong kong 
and china he was appointed 
to the sweett group board  
in december 201 1 and is 
responsible for operations 
across the asia pacific region 
kim is a member of the rics 
hkis ciarb and holds an 
honours degree in law
a former ftse 100 executive 
director who has wide 
experience of developing 
acquiring and disposing of 
projects and businesses in the 
uk and overseas he has also 
had direct responsibility for 
running a workforce of over 
15000 people with still more 
contractors as senior 
independent director of 
enterprise plc he was involved 
in its move from the aim to  
a full listing and then later as 
chairman he oversaw its move 
into privateequity ownership 
subsequently he was similarly 
involved in the transition of 
goldshield plc from public to 
privateequity ownership
roger has a wealth of 
knowledge of operating  
in international and uk 
construction markets he has 
over 40 years’ experience in 
the construction and property 
industry he is currently  
a fellow of the chartered 
institute of building and  
a fellow of the royal society  
of arts
formerly finance director  
of both listed and private 
equity backed companies 
after nearly 20 years’ 
experience in investment 
banking primarily advising  
on midcap ma he has 
experience of a broad range  
of sectors including support 
services energy services  
and manufacturing and has  
a record of successfully 
delivering change programmes 
in both positive and challenging 
circumstances he has 
worked as a consultant
interim director on a number 
of projects
year 
appointed
appointed as nonexecutive 
director in 1998 and chairman 
in 2010
joined the board in 2000 and 
was appointed ceo in 2005
january 2014 derek joined sweett group  
in 1978 became a partner at 
the age of 30 and managing 
director of the quantity 
surveying business in 1996 
he joined the board in 2000
december 2011 november 2007 september 2003 march 2013
other 
appointments
at present michael is also 
chairman of the advisory 
board of quexco inc  
the largest lead producer  
in the world
derek is the honorary t reasurer 
of the british council of 
shopping centres and an 
active member of bco 
design and build foundation 
and also the rics commercial 
property forum
roger is the chairman for 
housing solutions limited  
and in 1997 was made a cmg 
companion of the order of  
st michael and st george  
in recognition for export 
achievement and services  
to the construction industry
david is finance director  
of bellrock a lyceum  
capital backed facilities 
management business
past 
appointments
he was managing director and 
chief executive of cookson 
group plc a former ftse 100 
company for 12 years and  
has also been a director of 
guinness mahon holdings  
plc and tioxide group plc 
he was also chairman of 
henderson crosthwaite ltd
prior to joining the group 
patrick was head of finance 
at penna plc regional 
director of finance at ncp ltd 
and financial controller at 
danone uk
kim has served on the rics 
committees for asia pacific 
education and standards and 
the hong kong qs faculty 
the hkis qs divisional 
council and is a past 
chairman of the hk 
association of consultant 
quantity surveyors
senior independent director 
goldshield plc chairman 
enterprise plc board member 
university of hertfordshire 
group managing director 
lattice plc and over  
20 more national and  
international directorships
managing director at  
bovis international ltd  
and director at bovis 
lendlease ltd
group finance director  
of wyg plc group finance 
director of adler and  
allan limited and director  
of nm rothschild corporate 
finance limited
committee 
membership 
member of nominations 
committee remuneration 
committee and audit 
committee
chairman of the  
nomination committee
member of audit  
committee and  
remuneration committee
chairman of the  
remuneration committee
member of nomination 
committee and audit 
committee
chairman of the  
audit committee
member of nomination 
committee and  
remuneration committee
governance
sweett group plc annual report and accounts 2014 33
strategic report financial statements corporate governance
details are provided below of how the company applies those 
parts of the code which it believes to be appropriate 
leadership
the chairman is responsible for the leadership of the board and  
for ensuring the effectiveness of the board as a whole the board’s 
role is to determine the strategic direction of the group within a 
framework of best practice corporate governance and prudent and 
effective controls which enables risks to be assessed and managed 
it sets the group’s values and standards including matters relating  
to corporate social responsibility and ensures that its obligations  
to its shareholders and others are understood and met
the roles of the chairman and chief executive are separate  
and clearly defined and a senior independent director has 
been appointed
the role of the nonexecutive directors is to challenge constructively 
and review executive proposals including the development of 
strategy the board’s annual strategy session which all directors 
attended was held in march and gave the board the opportunity  
to work in a very focused way on the group’s strategy for the  
coming years all directors are expected to attend all meetings  
of the board and of those committees on which they serve  
and to devote sufficient time to the company’s affairs to enable 
them to fulfil their duties as directors the table below details the 
attendance of directors at board and committee meetings they 
were eligible to attend in the year
executive board
dean webster 1010
derek pitcher 1010
chris goscomb 77
kim berry 1010
patrick sinclair 33
nonexecutive board audit remuneration nominations
michael  
henderson 1010 44 55 22
roger mabey 1010 44 55 22
nicholas  
woollacott 1010 44 55 22
david wilton 1010 44 45 22
chris goscomb resigned on 31 december 2013 and  
patrick sinclair was appointed on 1 january 2014 
specific responsibilities reserved to the board include
•  the acquisition or disposal of a business or of shares  
in a company 
•  the establishment of a new business or closure of  
an existing business 
• the annual budget and strategic plan 
•  significant capital expenditure it equipment and  
leasing arrangements 
•  proposed contracts satisfying specific criteria 
•  changes to the organisational structure or management 
structure and 
• dividend policy
effectiveness
the board comprises four executive and four nonexecutive 
directors meeting every other month and additionally when 
necessary in the reporting period there were 10 formal board 
meetings and also a oneday strategic planning workshop 
dealing with shorterterm budgeting and longerterm planning 
issues subcommittees of the board meet as required
the executive directors have long and deep experience of 
business in the sectors in which they operate this is complemented 
by the expertise of the nonexecutive directors who have strong 
track records of running both large and smaller companies in 
diverse sectors both nationally and internationally this collective 
mix of skills and experience is a major contribution to the proper 
functioning of the board ensuring that matters are constructively 
challenged and fully debated and that no individual or group 
dominates the board’s decisionmaking process
directors are appointed by the board on the recommendation  
of the nominations committee they are subject to periodic 
reappointment by shareholders and statutory provisions regarding 
removal this applies equally to nonexecutive directors and 
because the nonexecutive chairman of the company has served 
on the board since 1998 he is subject to annual reelection at the 
company’s annual general meeting the board has determined 
that the chairman continues to be independent in character and 
judgement and that the company is fortunate to have someone  
of his calibre and expertise to lead it
each nonexecutive director has significant external commercial 
experience and brings experience and judgement to the board 
the board considers that all of the nonexecutive directors are 
independent of management and have no business or other 
relationships which could materially interfere with or affect the 
exercise of their independent judgement none has previously 
been involved in the management of the company 
nicholas woollacott was appointed senior independent director 
on 30 november 2010 when required he presides over meetings 
of the board and shareholders in the absence of the chairman 
and is available should occasion arise where there is a need to 
convey concerns to the board other than through the chairman 
the chief executive and the other executive directors
sweett group plc annual report and accounts 2014 34 all directors have access to the advice and services of the 
company secretary and there is a procedure for directors to 
seek independent professional advice in furtherance of their 
duties at the company’s expense the company secretary  
is responsible for advising the board through the chairman  
on all governance matters under the direction of the chairman  
the company secretary ensures that the information presented  
to the board is timely and of sufficient quality to enable members  
to make informed decisions and ensures good information  
flows within the board and its committees and between  
senior management and nonexecutive directors
the board is committed to evaluating its own performance  
that of its committees and its individual directors individual  
board members executive and nonexecutive are evaluated 
annually on similar timing to the companywide appraisal system 
this is led by the chairman of the board generally and by the  
senior independent director in relation to the chairman the code 
recommends that an effectiveness review be conducted every 
year but the board considers it to be more reasonable to hold the 
review when required rather than every year as referred to in last 
year’s annual report the board conducted an effectiveness review 
in early 2013 the results of which have been reviewed and have 
formed the basis of an action plan which is being overseen by 
nicholas woollacott senior nonexecutive director
nominations committee
the members of the nominations committee are the nonexecutive 
directors it meets at least twice a year and is responsible for 
reviewing the board’s structure size composition balance of  
skills experience independence and knowledge during the  
year the nominations committee advised the board on possible 
appointments and resignations to and from the board and 
succession planning as well as reviewing the position of chairman 
succession planning for the group senior management  
and the board is in place and is continually updated as  
part of a companywide succession planning programme  
the nominations committee leads this process for the board 
during the year the nominations committee began the process 
of finding a nonexecutive chairman the present incumbent 
having advised his intention to retire the chairman of the 
nominations committee is leading this process
accountability
the board is responsible for establishing reviewing and 
maintaining the group’s systems of internal control and risk 
management and ensuring that these systems are effective for 
managing the business risk within the group the group has 
established a framework for identifying evaluating and managing 
significant risks faced by the group 
it is the responsibility of the management to ensure that the 
controls and procedures that operate within the framework are 
followed and that the board is kept fully appraised of any risks 
and control issues both operational and financial the board 
recognises that any system of internal control exists to minimise 
the risk of failure rather than to eliminate it and that any system  
of internal control can only provide reasonable not absolute 
assurance against material misstatement or loss work to  
reduce operational and financial risks and to improve the  
control environment is a continuous process across the group 
as part of these improvements a treasury committee meets to 
review significant treasury risks its remit includes the consideration 
of new banking facilities the renewal of existing facilities and 
those risks arising from crossborder intercompany exposures
the risk management of joint ventures and strategic partnerships 
is agreed between the parties and periodic reviews carried out 
where appropriate
the group reviews the effectiveness of the risk management 
system and its internal controls annually the internal control  
self assessment which was rolled out in 2012 by kpmg llp 
the group’s internal auditors has recently been completed for 
a third year in addition specific internal controls reviews were 
performed by kpmg llp focusing on uae hong kong and 
china the results of these reviews have been presented to  
the audit committee
the rollout of agresso a standardised erp system across the 
group already embedded in the uk is continuing and during the 
financial year the rollout was completed in india and hong kong 
adding to europe and the middle east having been implemented 
in australia and south asia pacific since 1 april 2014 the final 
step in the programme sees china going live by the end of 2014  
this will complete the rollout across the entire group
audit committee
the company’s audit committee comprises the nonexecutive 
directors and meets not less than three times per year during 
the year ended 31 march 2014 the committee met four times 
the audit committee is chaired by david wilton david is a 
chartered accountant with extensive experience in the support 
services sector he is considered by the board to have the 
necessary recent and relevant financial experience for his role  
as chairman 
the company’s chief executive officer chief financial officer and 
the company’s independent auditors pricewaterhousecoopers 
llp and internal audit providers kpmg llp are normally invited 
to attend audit committee meetings and other executives are 
invited to attend as and when appropriate
the audit committee operates under formal terms of reference 
the terms of reference authorise the committee to obtain 
external professional advice as necessary
the main roles and responsibilities of the audit committee are to
•  review the halfyear and annual financial statements and 
reports of the company before their submission to the board
•  review the process whereby the board assesses the 
effectiveness of the group’s internal control and risk 
management systems
•   consider other topics as defined by the board such as  
the company’s policies for preventing or detecting fraud  
its code of corporate conductbusiness ethics or the  
policies for ensuring that the company complies with  
relevant regulatory and legal requirements
•  review the performance of the company’s external and 
internal auditing functions
governance
sweett group plc annual report and accounts 2014 35
strategic report financial statements corporate governance 
continued
•  review the results and cost effectiveness of the audit and  
the independence and objectivity of the external auditors
•  make recommendations to the board on the appointment  
of the independent auditors the audit fee and any questions  
of resignation or dismissal relating to the auditors and
•  strengthen the independent position of the company’s 
independent auditors by providing channels of communication 
between them and the nonexecutive directors
the main responsibilities of the audit committee as discharged 
during the period were as follows
•  at its meetings held in november 2013 and june 2014  
the audit committee reviewed respectively the group’s 
halfyearly report and annual results announcement 
annual report and accounts on both occasions  
the committee received reports from management on 
significant aspects of the group’s financial statements  
and reports from the auditors identifying any accounting  
or judgemental issues requiring its attention
•  at each of the four meetings held during the year  
the committee received reports from the internal auditor  
kpmg which considered among other things the ongoing 
internal audit programme which included the internal control 
self assessment questionnaire and the results of internal 
controls reviews in the uae hong kong and china and
•  the committee also reviewed the independent auditors’ 
control findings and monitored the updating of the risk  
register by management
the audit committee is responsible for making recommendations 
to the board in relation to the appointment reappointment and 
removal of the independent auditors the committee takes into 
consideration a number of factors including the quality of reports 
provided by the independent auditors and of advice given the level 
of understanding demonstrated of the company’s businesses  
the objectivity of the auditors’ views on the controls throughout  
the company ability to coordinate a global audit the cost 
competitiveness of the auditors the tenure of incumbent auditors 
and the periodic rotation of the senior audit management assigned 
to the audit of the company having considered these factors the 
committee agreed to recommend the auditors for reappointment
where the auditors have provided nonaudit services  
the committee has ensured protection of their objectivity  
and independence taking account of relevant ethical guidance 
details of all fees paid to the auditors are included within  
note 5 to the financial statements
the outsourced internal auditor kpmg llp reports to the 
committee which reviews and approves the internal audit  
work programme each year
the group has in place a whistleblowing policy as part of its  
ethical guidelines to encourage openness and an environment 
where any relevant matter can be reported to management  
a helpline is operated 24 hours a day seven days a week  
by an external organisation that specialises in these services  
the policy exists in english and chinese and the facility is available 
to all group employees
an antibribery and corruption policy has also been established 
the board applies a zero tolerance approach to any breach of 
this policy
remuneration
the board has established a remuneration committee  
which meets at least twice a year it reviews the performance  
of the executive directors and sets the scale and structure of 
their remuneration and the basis of their service agreements  
with due regard to the interest of shareholders the year was  
the third year since introduction of the psp and options were 
granted to executive directors dean webster derek pitcher  
kim berry and patrick sinclair the psp was designed by 
external consultants with performance conditions that are 
stretching and promote the longterm success of the company 
further details on the psp can be found in the directors’ 
remuneration report on pages 37 to 42
relations with shareholders
the board is committed to a continuing dialogue with its 
shareholders the chairman ensures that the views of 
shareholders are communicated to the board as a whole
following the announcement and presentation of the interim  
and year end results there is a series of formal meetings  
with institutional shareholders and analysts these meetings 
enable the executive directors to appraise the investors of  
the group’s business and future plans and the shareholders  
can communicate any concerns they may have the group’s 
brokers and financial pr advisors provide feedback from the 
shareholder and analyst meetings and present the results  
to the board
the investor relations’ section on the group’s website  
wwwsweettgroupcom contains information on the group’s 
financial results and its stock exchange announcements  
the board has decided that in future the presentations given  
to shareholders regarding the interim and yearend results will  
be made available on the website additionally the annual 
general meeting provides a useful interface with shareholders 
all shareholders are invited to attend the annual general meeting 
and all members of the board will be available at the meeting to 
answer questions full interim and annual reports are made 
available to all shareholders
for and by order of the board
philip watt
company secretary
30 june 2014
sweett group plc annual report and accounts 2014 36 roger mabey
remuneration  
committee chairman
the board has established a remuneration 
committee which meets at least twice  
a year it reviews the performance of the 
executive directors and sets the scale and 
structure of their remuneration with due 
regard to the interests of shareholders
the committee’s activities during 201314
executive  
directors’ 
remuneration 
the committee reviewed the overall 
remuneration package for each 
executive director with the aim of 
attracting motivating and retaining 
executive directors of high calibre 
granting of  
share options
the committee recommended to  
the board grants of share options  
to senior employees based in uk  
and internationally as a means of 
rewarding excellent performance  
and to retain employees vital to  
the group’s success 
performance share 
plan psp
the committee reviewed the 
performance of the psp and made 
awards to three executive directors 
and a senior employee 
who is on the remuneration committee
name number of meetings attended
roger mabey chairman 55
michael henderson 55
david wilton 45
nicholas woollacott 55
directors’ remuneration report
unaudited information
the following disclosures are sufficient to meet the requirements 
of the aim rules
remuneration committee
the remuneration committee comprises the nonexecutive 
directors of the company and is chaired by roger mabey
executive directors’ remuneration policy
the remuneration committee determines the overall 
remuneration package for each executive director with the  
aim of attracting motivating and retaining executive directors  
of a high calibre to this end the remuneration committee  
takes external independent advice where it considers it  
appropriate to do so
basic salary
the salary of each executive director is determined by the 
committee taking into account their personal performance  
and the prevailing rates in the employment market for  
executives of comparable status responsibility skill and  
position in other relevant companies when determining 
directors’ salaries the committee is always sensitive to pay 
 and employment conditions throughout the group
executive bonus scheme 
under the 2014 executive bonus scheme £141000 is due  
2013 £66000
share option plans
the executive directors hold options under the enterprise 
management incentive share options scheme the hmrc 
approved company share option plan and the unapproved 
company share option plan the company no longer qualifies  
to grant further options under the enterprise management 
incentive scheme new scheme rules for both the approved  
and unapproved plans were put in place in june 2010 the 
approved scheme rules having received consent from hmrc 
the executive directors’ previous participation in the award  
of share options has been replaced by the psp scheme  
detailed below
performance share plan ‘psp’
the executive directors have received no further share options 
except where a director was granted those share options prior 
to being appointed to the board of sweett group plc under  
any of the group’s schemes since the implementation of a  
new performance share plan ‘psp’ which was approved  
at the annual general meeting held on 2 september 2011  
the committee made awards under the psp to three of  
the executive directors in 2011 and to all four executive and  
one executive committee member in 2012 the committee 
subsequently made awards to three executive directors and  
one executive committee member in 2013 the conditions  
and performance criteria governing the new scheme for a  
three year performance period are cumulative earnings per share 
targets lockup days targets and relative total shareholder returns 
performance targets each applying to a third of achievable awards
governance
sweett group plc annual report and accounts 2014 37
strategic report financial statements directors’ remuneration report
continued
year of grant
level 
of award
performance 
period
performance 
conditions
weighting of
performance 
conditions
2013 50 of salary executive directors three years cumulative eps 3333
40 of salary total shareholder return 3333
executive committee member average lockup days 3333
2012 50 of salary three years cumulative eps 3333
total shareholder return 3333
average lockup days 3333
2011 75 of salary three years cumulative eps 3333
total shareholder return 3333
average lockup days 3333
the performance conditions
cumulative earnings per share ‘eps’
one third of the total number of shares subject to an option is subject to the eps performance condition the eps performance 
condition is that cumulative eps must be at least 150p after the first year’s performance the remuneration committee found it 
appropriate to amend this performance criterion to at least 100p for the 2012 plan to make it more fair and reasonable for the plan 
that was implemented in 2013 the same performance criterion was agreed however for 2014 the remuneration committee has 
agreed that the eps performance condition reverts to being at least 150p vesting under the eps condition is as follows
performance condition granted in 2011 granted in 2012 and 2013
cumulative eps less than 15p 0 less than 10p 0
15p 25 10p 25
between 15p  
and 18p
between 25  
and 100
between 10p  
and 14p
between 25 
and 100
18p or more 100 14p or more 100
performance condition proposed to be granted in 2014
cumulative eps less than 15p 0 
15p 25
between 15p and 19p between 25 and 100
19p or more 100
 on a straight line basis
the total shareholder return and average lockup days’ performance conditions remained unchanged
total shareholder return ‘tsr’
one third of the total number of shares subject to an option is subject to the tsr performance condition the tsr performance 
condition is that the company’s total shareholder return over the performance period must be at least equal to the total 
shareholder return of the index over the same period vesting under the tsr performance condition is as follows
performance condition granted in 2011 2012 and 2013 and proposed to be granted in 2014
total shareholder return exceed index by 20 100
equal to index 25
between the above levels 100
less than the index 0
 on a straight line basis




sweett group plc annual report and accounts 2014 38 lockup days 
any shares subject to an option that are not subject to the eps performance condition or the tsr performance condition are subject to 
the lockup days performance condition the lockup days performance condition is that the percentage reduction in the company’s 
average lockup days over the performance period must be at least 2 vesting under the lockup days performance condition is as follows
performance condition granted in 2011 2012 and 2013 and proposed to be granted in 2014
average lockup days less than 2 0
2 25
between 2 and 9 between 25  100
equal to or greater than 9 100
 on a straight line basis
other benefits
each of the executive directors is provided with the use of a car or receives an annual cash allowance in lieu of this provision  
each also has the option of receiving the benefit of private medical insurance for themselves andor their spouse andor children 
other benefits provided include the payment of professional subscriptions and access to the group’s gym membership scheme
nonexecutive directors’ remuneration policy
the remuneration of the nonexecutive directors is determined by the chairman and the executive directors and the level of 
remuneration reflects the time commitment and responsibilities of their roles
service contracts
details of the directors’ service agreements are set out below
directors date of agreement notice period by company notice period by director
executive director
dean webster 31 october 2007 12 months 12 months
derek pitcher 31 october 2007 12 months 12 months
kim berry 1 april 2012 12 months 12 months
patrick sinclair 1 january 2014 12 months 12 months
nonexecutive director
michael henderson 31 october 2007 3 months 3 months
roger mabey 31 october 2007 3 months 3 months
nicholas woollacott 21 november 2007 3 months 3 months
david wilton 8 march 2013 3 months 3 months

governance
sweett group plc annual report and accounts 2014 39
strategic report financial statements directors’ emoluments
directors
salary
fees
£’000
benefits 
in kind
£’000
bonus
£’000
total 
2014
£’000
total 
2013
£’000
pension
2014 
£’000
pension
2013
£’000
executive director
dean webster 198 1 46 245 212 22 22
derek pitcher 153 1 38 192 166 10 10
christopher goscomb
executive from 1 january 2009  
to 31 december 2013 101 – 12 113 144 16 22
kim berry 158 3 38 199 171 3 3
patrick sinclair 
executive from 1 january 2014 34 – 7 41 – 2 –
nonexecutive director
michael henderson 75 – – 75 75 – –
roger mabey 33 – – 33 33 – –
nicholas woollacott 33 – – 33 33 – –
david wilton 33 – – 33 2 – –
jeffrey hewitt – – – – 33 – –
818 5 141 964 869 53 57
 emoluments in respect of the period during which they served as directors
the directors are not accruing benefits under the defined benefit pension scheme 2013 £nil
directors’ share options
at the end of the year the following directors had unexercised options to purchase ordinary shares
director
date of 
grant
earliest 
exercise 
date
expiry 
date
exercise 
price 
pence 
per share
number 
at 1 april 
2013
granted 
in the year
exercised 
in the year
lapsed 
in the year
number at 
31 march
 2014
dean 
webster 28112005 28112008 28112015 335 59701 – – – 59701
31102007 31102010 31102017 1100 100000 – – – 100000
20042009 20042012 20042019 330 153939 – – – 153939
derek
pitcher 06102003 06102006 06102013 208 216346 – 216346 – –
28112005 28112008 28112015 335 59701 – – – 59701
31102007 31102010 31102017 1100 75000 – – – 75000
20042009 20042012 20042019 330 108788 – – – 108788
patrick
sinclair 07122012 07122015 07122022 180 138888 – – – 138888
christopher
goscomb 31032008 31032011 31032018 945 30000 – – – –
20042009 20042012 20042019 330 106061 – – – –
  number at 1 april 2013 or at the date of becoming an executive during the year patrick sinclair was appointed on 1 january 2014
 christopher goscomb resigned on 31 december 2013
derek pitcher exercised options over 216346 shares at an exercise price of 208p when the share price was 475p 
none of the terms and conditions of the share options was varied during the year all options were granted in respect of qualifying services
directors’ remuneration report
continued
sweett group plc annual report and accounts 2014 40 performance share plan ‘psp’
director
date of 
grant
total share 
allocations 
outstanding 
at 1 april 
2013
shares 
allocated 
during 
the year
total share 
allocations 
outstanding  
as at 31  
march 2014 
market price 
of shares on 
day before 
award
performance 
period of eps 
and lockup
performance 
period of tsr
earliest 
vesting
 date
dean 
webster
09122011 668317 668317 0205
01042011
 – 
31032014
09122011 
–
 08122014 09122014
26092012 505464 505464 0183
01042012 
– 
31032015
26092012
 – 
25092015 09122015
30092013 274481 274481 0337
01042013 
– 
31032016
01082013 
– 
31072016 01082016
derek 
pitcher
09122011 501238 501238 0205
01042011
 – 
31032014
09122011
 – 
08122014 09122014
26092012 382514 382514 0183
01042012
 – 
31032015
26092012
 – 
25092015 09122015
30092013 207715 207715 0337
01042013 
– 
31032016
01082013 
– 
31072016 01082016
kim 
berry
26092012 391180 391180 0183
01042012 
– 
31032015
26092012 
– 
25092015 09122015
30092013 230064 230064 0337
01042013
 – 
31032016
01082013 
– 
31072016 01082016
patrick 
sinclair
30092013 130564 130564 0337
01042013
–
31032016
01082013
–
31072016 01082016
as a result of christopher goscomb’s retirement on 31 december 2013 the following share options within the psp vested during the 
year the number of share options being calculated on a prorata basis up to the date of retirement
director
date of 
grant
total share 
allocations 
outstanding 
at 1 april 
2013
shares 
allocated 
during 
the year
total share 
allocations 
outstanding  
as at  
31 march 2014 
market price 
of shares on 
day before 
award
performance 
period of eps 
and lockup
performance 
period of tsr
earliest 
vesting
 date
christopher 
goscomb
09122011 482673 114000 nil 0205
01042011 
 –  
31032014
09122011
–
10122014 09122014
26092012 368852 128000 nil 0183
01042012
– 
31032015
26092012
–
25092015 09122015
  prorata to 31 december 2013
an amount of £95633 was paid subsequent to the year end to christopher goscomb by way of settlement of these awards 
none of the terms and conditions of the psp share options was varied during the year all options were granted in respect of 
qualifying services the awards have no exercise price as they are nilcost options they are used solely as the basis for computing 
cash bonuses for the 2011 scheme or cash or share bonuses for the 2012 2013 and subsequent schemes that may become due 
under the psp
the market price of the company’s shares at the end of the financial year was 485p and the range of market prices during  
the year was 185p to 705p
governance
sweett group plc annual report and accounts 2014 41
strategic report financial statements directors’ interests in shares
the interests of the directors including their spouses’ interests in the shares of the company at 31 march 2014 were as follows
directors
at 31 march 2014
ordinary shares
at 31 march 2013
ordinary shares
dean webster 1082051 1053449
derek pitcher 2000574 1722253
christopher goscomb resigned on 31 december 2013 – 214623
patrick sinclair appointed on 1 january 2014 11013 –
michael henderson 498030 423506
roger mabey 350210 318472
nicholas woollacott 119666 93000
kim berry 4465285 4427619
david wilton appointed on 8 march 2013 23334 –
pensions
none of the current directors is a member of the final salary pension scheme
this report has been approved by the board and was signed on behalf of the board by
roger mabey
chairman of the remuneration committee
30 june 2014
directors’ remuneration report
continued
sweett group plc annual report and accounts 2014 42 report of the directors
the directors present their report and the audited consolidated 
financial statements of sweett group plc and its subsidiary 
undertakings for the year ended 31 march 2014
principal activities
the principal activities of the group through its subsidiary 
undertakings continue to be the provision of construction  
cost consultancy project management and other specialised 
consultancy services including building surveying
during the year these services were delivered through a network 
of whollyowned companies and offices in asia pacific including 
hong kong and china australia india ireland the middle east 
spain and the uk the group has branches in abu dhabi dubai 
and sri lanka
the principal activity of the company is that of a holding 
company the company is domiciled in the uk
strategic report
details of the group’s performance and activities during the  
year are contained in the chairman’s statement the chief 
executive’s review and the financial review on pages 06 to 25  
a commentary on banking and going concern issues is 
contained in the financial review on pages 22 to 25 
results
the results for the year and the group’s financial position at the 
end of the year are shown in the attached financial statements
future developments
an indication of future developments is contained in the 
chairman’s statement and the chief executive’s review on 
pages 06 to 21
dividends
the directors recommend the payment of a final dividend  
of 08p per share £549000 2013 07p £474000 making  
with the interim dividend of 05p per share £342000 a total 
dividend of 13p per share £891000 2013 10p £677000
directors and their interests in the shares of the company
the directors who held office during the year and up to the date  
of signing the financial statements were as follows
dean webster
michael henderson nonexecutive
derek pitcher
nicholas woollacott nonexecutive
kim berry
roger mabey nonexecutive
patrick sinclair appointed on 1 january 2014
david wilton nonexecutive
christopher goscomb retired on 31 december 2013 and therefore resigned  
as a director of the company on the same date
details of the directors’ interests in shares in the company 
appear in the directors’ remuneration report on pages 37 to 42
substantial interests in shares
as at 26 june 2014 the following interests in 3 or more  
of the company’s ordinary share capital had been notified  
to the company
directors
number of 
shares
percentage 
held
cyril sweett trustee  
company limited 8403598 1224
octopus investments 
nominees limited 4798259 699
kim berry 4490285 654
close asset  
management limited 3710534 540
treasury shares
treasury shares included in the annual financial statements 
comprise sweett group plc ordinary shares held by the  
sweett group employee benefit trust and the sweett group 
share incentive plan details of which are included at note 24  
to the annual financial statements
employment policy
the group is an equal opportunity employer in the uk and  
its policy is to ensure greater diversity and inclusion it seeks  
to ensure that all employees and job applicants are given  
equal opportunity irrespective of their sex race ethnic origin 
disability age marital status sexual orientation or religious 
affiliation in all respects of employment and training and that  
no such person is placed at a disadvantage by requirements  
or conditions which cannot be shown to be justified
the group encourages where possible the employment of 
disabled people and retention of those who become disabled 
during their employment with the group such individuals will  
be encouraged and supported to take advantage of the  
group’s learning and development initiatives and career 
progression opportunities
the group seeks to ensure that all its businesses operate sound 
and progressive employment policies and promotes initiatives  
to attract and retain talent and promote employee engagement 
consultation and communication with employees continues  
at all levels with the aims of ensuring that their views are taken 
into account when decisions are made that are likely to affect 
their interests that information is promulgated on matters of 
concern to them and that all employees are aware of the financial 
and economic factors that may affect the performance of their 
business units and of the group as a whole this is achieved  
for example by a regular ceo blog on the intranet 
the group encourages employees’ interest in its financial 
performance through various share schemes details of which 
are included at notes 24 and 25 to the financial statements
governance
sweett group plc annual report and accounts 2014 43
strategic report financial statements report of the directors
continued
the group’s strategy is to position itself as an employer of  
choice in its sector shortly before the financial year end the 
group was awarded with investors in people iip accreditation  
in the uk the group is proud of this achievement and is now 
working towards the bronze level of accreditation the award 
reflects the commitment that the group has towards engaging 
with and developing its employees 
environmental policy
sweett group recognises that its business activities have an  
impact on the local regional and global environment we undertake 
to carry out our operations with due regard to the effect they  
may have on the environment acknowledging both current  
best practice and our legal obligations we are committed to 
continuous improvement in our environmental performance
in meeting its obligations with regards to its environmental  
policy sweett group will 
•  meet relevant regulatory requirements and minimise  
any adverse environmental effects caused as a result  
of our activities including the prevention of pollution
•  raise awareness provide knowledge and support to 
employees on environmental management 
•  give training on the importance of environment and 
sustainability to our business and our clients’ success  
to all appropriate employees
•  invest in research and development to improve our  
own capability to predict and enhance building and  
investment performance
•  promote an awareness of environmental objectives  
the inclusion of sustainability requirements and the benefits  
of sustainable procurement to our clients throughout the 
broader activities as a construction consultant
•  where practicable promote and utilise resource efficient 
products ie products with a high recycled content energy 
efficient appliances
•  consider programmes for replacement and substitution  
of consumable materials and components with less 
environmentally damaging alternatives 
•  where practicable purchase goods that can be easily 
upgraded by adding or replacing parts that comply with  
all relevant procurement and environmental legislation  
as well as the continued use of fair trade products
•  operate a policy of reduce reuse and recycle for our 
materials and ensure waste is recycled where practical
•  regularly review our environmental practices and policy  
in accordance with the principles of iso 14001
•  establish performance objectives targets and management 
programmes to achieve these 
•  ensure adequate resources are provided to implement the 
environmental management system
corporate social responsibility
sweett group recognises that our operations and the services  
we provide have a significant impact on the communities and 
environments in which we operate our strategy of longterm 
sustainable growth is directly linked to our corporate social 
responsibility csr efforts
being a good corporate citizen also involves creating an 
environment that facilitates staff participation in charitable  
and community related activities – both in their professional 
capability and in their spare time
the group’s csr policy addresses four main areas  
of responsibility
1 employee wellbeing
2 community
3 charity
4 environment
•  employee wellbeing – our clients work with us because  
of the quality of our staff and the added value their expertise 
and knowledge represents we see our csr work as a 
mechanism for boosting morale fostering team spirit and 
encouraging healthy living all of which contribute to creating 
happier healthier members of staff 
•  c o mm u ni t y – operating within the built environment we  
have a responsibility to ensure we engage with and play  
an active role in the local communities in which we operate  
we do this through the development of the services we offer 
our clients and by building longterm relationships with key 
local stakeholders through our community outreach and 
charitable activities
•  ch a r it y – the group and its staff have supported a number  
of charities across the world covering causes such as cancer 
care men’s health and animal welfare in january 2012 after  
a significant staff consultation process the board of directors 
adopted the theme of childrenyouth in the community as the 
group’s charitable cause each regional csr committee’s 
charitable activities are focused on this cause with local 
relevant charities having been adopted across the group
•  e n vi ron m e n t – the construction maintenance and operation 
of property and infrastructure developments accounts for  
a significant portion of the world’s annual carbon emissions 
our consultants play an important role in reducing these 
emissions by working with our clients to minimise the 
environmental impact of projects throughout their lifecycle  
we also work across our own estate of offices and fleets to 
ensure energy and water consumption is kept to a minimum 
and recycling takes place where possible minimising our 
waste to landfill
sweett group plc annual report and accounts 2014 44 in recognition of the link between our strategy for sustainable 
growth and our csr efforts responsibility for the group’s csr 
work lies with the board of directors which guides the work of 
our local csr committees through the group csr policy
the group recognises the benefits of sustainable construction 
and protecting the environment whilst carrying out construction 
projects and associated activities
all activities are undertaken in a manner that manages the 
group’s environmental impact fulfils opportunities to enhance 
the environment prevents pollution minimises waste controls 
noise uses materials and resources efficiently and protects wildlife
the group has underpinned its commitment to managing the 
environmental impact of its operations by gaining iso 14001 
certification for the environmental management system for its 
head office with a programme underway for roll out to other 
regional offices in the uk it is working to deliver environmental 
objectives of reducing waste and encouraging recycling 
investigating ways of minimising resource consumption and 
developing environmental requirements for new offices
sweett group’s corporate goal is to leverage its environmental 
expertise to create the most cost effective solutions for the 
sustainable built environment by 
•  embedding sustainability expertise into its core services  
to enable staff to actively contribute to the sustainability  
of projects
•  increasing the degree to which all staff have developed  
their sustainability knowledge and
•  appointing an expert specifically tasked with supporting  
the operational business with the tools and data they need 
to realise this goal
sweett group continues to work with the uk’s waste and 
resources action programme wrap to support the construction 
and property sectors to make more efficient use of natural 
resources helping to save money and reduce carbon emissions 
we are currently helping wrap to expand their work within the 
built environment including development of the business case for 
resource efficiency design of simple but effective procurement 
clauses and development of an online portal to help businesses 
define their goals and track performance our work with wrap  
is just one example of sweett group’s commitment to help in 
developing effective responses to the sustainability challenges 
facing the built environment other work includes major studies 
and policy advice for the department for energy and climate 
change department for business innovation and skills  
green construction board uk green buildings council  
bre investment property forum and zero carbon hub
the group complies with environmental legislation and environmental 
codes of practice applicable to the construction industry
health and safety policy
it is the group’s policy to fulfil its duties under the health and 
safety at work act 1974 and all other associated acts and  
legal obligations applicable to the construction industry in the  
uk and overseas the health and safety policy sets out the 
arrangements in place including the roles and responsibilities  
of all relevant parties for managing health and safety across  
the organisation 
hazards specific to sweett group have been identified and  
any further actions to reduce or control these are prioritised  
in a health and safety plan which sets out the objectives for 
continual improvement in health and safety management and 
aims to ensure that the group achieves best practice
where necessary the policy is supported by more detailed 
guidance all guidance is reviewed and updated on a regular 
basis to ensure that it remains legally compliant is accurate and 
reflects contemporary best practice the policy and plan are 
reviewed at least annually when there are changes in legislation 
that may affect the organisation or changes in work practices
the group provides suitable and sufficient resources to 
implement the arrangements set out in the policy including 
information instruction and training as required all staff are 
informed of their responsibility to take care of their own health 
and safety and actively participate and cooperate with the 
group to enable it to discharge its statutory responsibilities  
and fulfil its desire for continual improvement in all safety  
health and welfare matters
supplier payment policy
the group applies a policy of agreeing and clearly communicating 
terms and conditions for business transactions with its suppliers 
payment is then made in accordance with these terms subject to 
terms and conditions being met by the suppliers at 31 march 2014 
the group had 42 2013 45 days of purchases in trade payables 
and the company had no trade payables 2013 none
whistleblowing policy
the group has established a whistleblowing policy as part of its 
ethical guidelines to encourage openness and an environment 
where any relevant matter can be reported to management 
governance
sweett group plc annual report and accounts 2014 45
strategic report financial statements report of the directors
continued
directors’ and officers’ liability insurance
in so far as permitted by law every director shall be indemnified  
by the company against all costs charges expenses losses or 
liabilities incurred in the execution and discharge of the directors’ 
duties power or office the company maintains directors’ and 
officers’ liability insurance the terms of which include qualifying  
third party indemnity and indemnity limits which are reviewed 
annually and considered to be adequate this insurance including 
the third party indemnity was in place during the financial year  
and also at the date of approval of the financial statements 
risks and uncertainties
details of the principal risks and uncertainties faced by the group 
can be found under risk management and principal risks and 
uncertainties on pages 26 and 27
corporate governance
a report on the group’s corporate governance compliance  
is set out in the corporate governance section of this annual  
report on pages 34 to 36
donations
during the year the group made various charitable contributions 
totalling £4824 2013 £4959 the nature of the group’s 
charitable giving is detailed under the corporate social 
responsibility section of this report there were no political 
donations during the year 2013 £nil
2014
£
2013
£
children’s charities 250 2246
charities aid foundation and other 
registered charities 1522 2287
other nonregistered charities 2952 426
donations of £200 or less  
one 2013 none 100 –
4824 4959
disclosure of information to auditors
in the case of each of the directors at the time of approval  
of this report each director confirms that
•  so far as the director is aware there is no relevant audit 
information of which the company’s auditors are unaware and 
•  he has taken all the steps that he ought to have taken as a 
director in order to make himself aware of any relevant audit 
information and to establish that the company’s auditors are 
aware of that information
independent auditors
pricewaterhousecoopers llp have indicated their willingness  
to continue in office and a resolution that they be reappointed 
will be proposed at the annual general meeting
going concern
the directors are confident that they have the right strategy  
and action plan to operate within the requirements of the bank 
covenants and on this basis have a reasonable expectation  
that the group has adequate resources to continue in operational 
existence for the foreseeable future for this reason they continue 
to adopt the going concern basis in preparing the group’s financial 
statements further details on going concern are set out in note 1 
to the financial statements 
forwardlooking statements
certain statements in this annual report and accounts  
are forwardlooking although the group believes that the 
expectations reflected in these forwardlooking statements  
are reasonable we can give no assurance that these 
expectations will prove to have been correct because these 
statements involve risk and uncertainties actual results may  
differ materially from those expressed or implied by these 
forwardlooking statements
we undertake no obligation to update any forwardlooking 
statements whether as a result of new information  
future events or otherwise
annual general meeting
the annual general meeting of the shareholders will be held  
at pinsent masons llp 30 crown place earl street london 
ec2a 4es on 29 august 2014 at 1000am the notice of 
meeting and the explanatory notes will be included in the  
notice to be sent to all shareholders 
by order of the board
philip watt
company secretary
30 june 2014 
sweett group plc annual report and accounts 2014 46 statement of directors’ responsibilities in respect  
of the annual report and the financial statements
the directors are responsible for preparing the annual report 
and the financial statements in accordance with applicable law 
and regulations
company law requires the directors to prepare financial statements 
for each financial year under that law the directors have prepared 
the group and parent company financial statements in accordance 
with international financial reporting standards ifrss as adopted 
by the european union under company law the directors must not 
approve the financial statements unless they are satisfied that they 
give a true and fair view of the state of affairs of the group and  
the company and of the profit or loss of the group for that period 
in preparing these financial statements the directors are required to
•  select suitable accounting policies and then apply  
them consistently
•  make judgements and accounting estimates that are 
reasonable and prudent
•  state whether applicable ifrss as adopted by the european 
union have been followed subject to any material departures 
disclosed and explained in the financial statements and
•  prepare the financial statements on the going concern basis 
unless it is inappropriate to presume that the company and  
the group will continue in business
the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time 
the financial position of the company and the group and enable 
them to ensure that the financial statements comply with the 
companies act 2006 they are also responsible for safeguarding 
the assets of the company and the group and hence for taking 
reasonable steps for the prevention and detection of fraud and 
other irregularities
the directors are responsible for the maintenance and integrity 
of the company’s website legislation in the united kingdom 
governing the preparation and dissemination of financial 
statements may differ from legislation in other jurisdictions 
signed on behalf of the board on 30 june 2014
dean webster   patrick sinclair 
director    director 
governance
sweett group plc annual report and accounts 2014 47
strategic report financial statements independent auditors’ report to the  
members of sweett group plc 
report on the financial statements
our opinion
in our opinion
•  the financial statements defined below give a true and fair 
view of the state of the group’s and of the company’s affairs 
as at 31 march 2014 and of the group’s profit and the group’s 
and the company’s cash flows for the year then ended
•  the group financial statements have been properly prepared  
in accordance with international financial reporting standards 
ifrss as adopted by the european union
•  the company financial statements have been properly 
prepared in accordance with international financial reporting 
standards ifrss as adopted by the european union and as 
applied in accordance with the provisions of the companies 
act 2006 and
•  the financial statements have been prepared in accordance 
with the requirements of the companies act 2006
this opinion is to be read in the context of what we say in  
the remainder of this report
what we have audited
the group financial statements and company financial 
statements the “financial statements” which are prepared  
by sweett group plc comprise
•  the consolidated and company balance sheets as at  
31 march 2014
•  the consolidated income statement and consolidated 
statement of comprehensive income for the year  
then ended
•  the consolidated and company statement of cash flows  
for the year then ended
•  the consolidated and company statement of changes  
in equity for the year then ended and
•  the notes to the financial statements which include a  
summary of significant accounting policies and other 
explanatory information
the financial reporting framework that has been applied in  
their preparation is applicable law and ifrss as adopted by  
the european union and as regards the company financial 
statements as applied in accordance with the provisions of  
the companies act 2006
in applying the financial reporting framework the directors have 
made a number of subjective judgements for example in respect  
of significant accounting estimates in making such estimates 
they have made assumptions and considered future events
certain disclosures required by the financial reporting  
framework have been presented elsewhere in the annual  
report rather than in the notes to the financial statements 
these are crossreferenced from the financial statements  
and are identified as audited
what an audit of financial statements involves
we conducted our audit in accordance with international 
standards on auditing uk and ireland “isas uk  ireland”  
an audit involves obtaining evidence about the amounts  
and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free  
from material misstatement whether caused by fraud or error 
this includes an assessment of 
•  whether the accounting policies are appropriate to the group’s 
and the company’s circumstances and have been consistently 
applied and adequately disclosed 
•  the reasonableness of significant accounting estimates made 
by the directors and
•  the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial information 
in the annual report to identify material inconsistencies with  
the audited financial statements and to identify any information 
that is apparently materially incorrect based on or materially 
inconsistent with the knowledge acquired by us in the course  
of performing the audit if we become aware of any apparent 
material misstatements or inconsistencies we consider the 
implications for our report
sweett group plc annual report and accounts 2014 48 opinion on other matter prescribed by the  
companies act 2006
in our opinion the information given in the strategic report and  
the directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial statements
matters on which we are required to report by exception
adequacy of accounting records and information and 
explanations received
under the companies act 2006 we are required to report  
to you if in our opinion
•  we have not received all the information and explanations  
we require for our audit or
•  adequate accounting records have not been kept by the 
company or returns adequate for our audit have not been 
received from branches not visited by us or
•  the company financial statements are not in agreement  
with the accounting records and returns
we have no exceptions to report arising from this responsibility
directors’ remuneration
under the companies act 2006 we are required to report  
to you if in our opinion certain disclosures of directors’ 
remuneration specified by law are not made we have no 
exceptions to report arising from this responsibility 
responsibilities for the financial statements  
and the audit
our responsibilities and those of the directors
as explained more fully in the directors’ responsibilities 
statement set out on page 47 the directors are responsible  
for the preparation of the financial statements and for being 
satisfied that they give a true and fair view
our responsibility is to audit and express an opinion on the 
financial statements in accordance with applicable law and  
isas uk  ireland those standards require us to comply with 
the auditing practices board’s ethical standards for auditors
this report including the opinions has been prepared for and 
only for the company’s members as a body in accordance with 
chapter 3 of part 16 of the companies act 2006 and for no other 
purpose we do not in giving these opinions accept or assume 
responsibility for any other purpose or to any other person to 
whom this report is shown or into whose hands it may come  
save where expressly agreed by our prior consent in writing
simon o’brien senior statutory auditor
for and on behalf of pricewaterhousecoopers llp
chartered accountants and statutory auditors
london
30 june 2014
governance
sweett group plc annual report and accounts 2014 49
strategic report financial statements consolidated income statement 
for the year ended 31 march 2014
note
2014
£’000
2013
£’000
revenue 3 89398 80636
cost of sales 61936 57398
gross profit 27462 23238
profit on disposal of available for sale assets 3 – 1389
administrative expenses before the following 22563 20352
amortisation of acquired intangibles 11 457 480
performance share plan charges and associated costs 5 609 –
exceptional administrative expenses 5 1523 1455
total administrative expenses 25152 22287
operating profit before the following 4899 4275
amortisation of acquired intangibles 11 457 480
performance share plan charges and associated costs 5 609 –
exceptional administrative expenses 5 1523 1455
operating profit 2310 2340
finance income 4 1007 170
finance costs 4 491 735
net finance incomecosts 4 516 565
profit before taxation 5 2826 1775
income tax expense 7 932 476
profit for the year attributable to owners of the parent 1894 1299
basic earnings per share pence 9 28 19
diluted earnings per share pence 9 27 19
the notes on pages 58 to 97 are an integral part of these financial statements
the parent company has elected to take the exemption under section 408 of the companies act 2006 not to present the company’s 
income statement and statement of comprehensive income the loss for the company for the year was £2769000 2013 profit  
of £2575000 included in the lossprofit for the year are dividends received from subsidiaries amounting to £nil 2013 £4773000
sweett group plc annual report and accounts 2014 50 consolidated statement of comprehensive income  
for the year ended 31 march 2014
note
2014
£’000
2013
£’000
profit for the year 1894 1299
other comprehensive incomeexpense
items that will not be reclassified to profit or loss 
actuarial gainloss on pension scheme 21 839 1041
tax on actuarial gainloss on pension scheme 7 271 153
568 888
items that may be reclassified to profit or loss
exchange differences on translation of foreign operations 2553 789
reversal of valuation gains on disposal of available for sale financial assets 13 – 2015
reversal of deferred tax on valuation gains on disposal of available  
for sale financial assets 7 – 484
change in fair value of currency hedge derivative financial instrument – 549
2553 1291
total other comprehensive expense 1985 2179
total comprehensive expense attributable to owners of the parent 91 880
the notes on pages 58 to 97 are an integral part of these financial statements
total comprehensive expense attributable to owners of the parent arose from continuing operations 
financial statements
sweett group plc annual report and accounts 2014 51
governance strategic report consolidated balance sheet
as at 31 march 2014
note
2014
£’000
2013
£’000
noncurrent assets
goodwill 10 15228 16348
other intangible assets 11 2502 2729
property plant and equipment 12 1618 1779
financial assets available for sale 13 87 87
loans and other receivables 13 91 567
deferred income tax asset 15 1355 1616
total noncurrent assets 20881 23126
current assets
trade and other receivables 16 34123 34654
cash and cash equivalents 17 6568 3915
total current assets 40691 38569
total assets 61572 61695
current liabilities 
borrowings 18 7222 8710
derivative financial instrument 18a – 1359
trade and other payables 19 17366 16700
current income tax liabilities 1590 1375
total current liabilities 26178 28144
noncurrent liabilities
borrowings 18 5633 2265
deferred income tax liability 15 107 152
retirement benefit obligations 21 2301 3180
total noncurrent liabilities 8041 5597
total liabilities 34219 33741
net assets 27353 27954
equity
share capital 22 6865 6769
share premium account 23 13833 13658
treasury shares 24 17 10
share option reserve 25 647 640
other reserves 1310 1243
retained earnings 7335 5654
total equity attributable to owners of the parent 27353 27954
the notes on pages 58 to 97 are an integral part of these financial statements
the financial statements on pages 50 to 57 were authorised for issue by the board of directors on 30 june 2014 and were signed  
on its behalf
dean webster
director
patrick sinclair
director
 
 
sweett group plc annual report and accounts 2014 52 company balance sheet 
as at 31 march 2014
note
2014
£’000
2013
£’000
noncurrent assets
goodwill 10 2703 2703
investments 13a 40625 40589
deferred income tax asset 15 557 731
total noncurrent assets 43885 44023
current assets
trade and other receivables 16 712 4197
cash and cash equivalents 17 15 25
total current assets 727 4222
total assets 44612 48245
current liabilities
borrowings 18 1500 5207
derivative financial instrument 18a – 1359
trade and other payables 19 9759 8111
total current liabilities 11259 14677
noncurrent liabilities
borrowings 18 5625 2250
retirement benefit obligations 21 2301 3180
total noncurrent liabilities 7926 5430
total liabilities 19185 20107
net assets 25427 28138
equity
share capital 22 6865 6769
share premium account 23 13833 13658
treasury shares 24 17 10
share option reserve 25 670 640
retained earnings 4076 7081
total equity 25427 28138
the notes on pages 58 to 97 are an integral part of these financial statements
the financial statements of sweett group plc registered company number 3452251 on pages 50 to 57 were authorised for issue  
by the board of directors on 30 june 2014 and were signed on its behalf
dean webster
director
patrick sinclair
director
financial statements
sweett group plc annual report and accounts 2014 53
governance strategic report consolidated statement of changes in equity
for the year ended 31 march 2014
group note
share 
capital
£’000
share 
premium
account
£’000
treasury 
shares
£’000 
share 
option 
reserves
£’000
other
reserves
£’000
retained 
earnings 
£’000
total 
equity
£’000
at 1 april 2012 6631 13475 60 600 1985 6198 28829
comprehensive expense
profit for the year – – – – – 1299 1299
other comprehensive 
incomeexpense
exchange differences on 
translation of foreign operations – – – – 789 – 789
reversal of valuation gains  
on disposal of available for  
sale financial assets 13 – – – – 2015 – 2015
actuarial loss on  
pension scheme – – – – – 1041 1041
deferred tax on items taken 
directly to equity 7 – – – – 484 153 637
change in fair value of derivative 
financial instrument – – – – – 549 549
total other comprehensive 
expense – – – – 742 1437 2179
total comprehensive expense – – – – 742 138 880
transactions with owners
dividends 8 – – – – – 406 406
employee share option scheme
– value of services provided 25 – – – 40 – – 40
– exercise of awards 25 – – – – – – –
net disposal of shares during  
the year 24 – – 50 – – – 50
new shares issued during  
the year 2223 138 183 – – – – 321
transactions with owners 138 183 50 40 – 406 5
at 31 march 2013 6769 13658 10 640 1243 5654 27954
comprehensive  
expenseincome
profit for the year – – – – – 1894 1894
other comprehensive  
expenseincome
exchange differences on 
translation of foreign operations – – – – 2553 – 2553
actuarial gain on pension 
scheme – – – – – 839 839
deferred tax on items taken 
directly to equity 7 – – – – – 271 271
change in fair value of derivative 
financial instrument – – – – – – –
total other comprehensive 
expenseincome – – – – 2553 568 1985
sweett group plc annual report and accounts 2014 54 group note
share 
capital
£’000
share 
premium
account
£’000
treasury 
shares
£’000 
share 
option 
reserves
£’000
other
reserves
£’000
retained 
earnings 
£’000
total 
equity
£’000
total comprehensive  
expenseincome – – – – 2553 2462 91
transactions with owners
dividends 8 – – – – – 816 816
employee share option scheme
– value of services provided 25 – – – 42 – – 42
– exercise of awards 25 – – – 35 – 35 –
net acquisition of shares during  
the year 24 – – 7 – – – 7
new shares issued during  
the year 2223 96 175 – – – – 271
transactions with owners 96 175 7 7 – 781 510
at 31 march 2014 6865 13833 17 647 1310 7335 27353
other reserves comprise cumulative exchange lossesgains recorded through the statement of changes in equity of £1310000 
2013 £1243000 and fair value adjustments to available for sale financial assets of £nil 2013 £nil and these are not available  
for distribution
the notes on pages 58 to 97 are an integral part of these financial statements
financial statements
sweett group plc annual report and accounts 2014 55
governance strategic report company statement of changes in equity
for the year ended 31 march 2014
company note
share capital 
£’000
share 
premium
account
£’000
treasury 
shares
£’000 
share option 
reserves
£’000
retained
earnings
£’000
total 
equity
£’000
at 1 april 2012 6631 13475 60 600 6349 26995
comprehensive expense
profit for the year – – – – 2575 2575
other comprehensive expenseincome
actuarial loss on pension scheme 21 – – – – 1041 1041
deferred tax on items taken directly to equity 14 – – – – 153 153
change in fair value of derivative financial 
instrument – – – – 549 549
total other comprehensive expense – – – – 1437 1437
total comprehensive income – – – – 1138 1138
transactions with owners
dividends 8 – – – – 406 406
employee share option scheme
– value of services provided 25 – – – 40 – 40
– exercise of awards 25 – – – – – –
net disposal of shares during the year 24 – – 50 – – 50
new shares issued during the year 2223 138 183 – – – 321
transactions with owners 138 183 50 40 406 5
at 31 march 2013 6769 13658 10 640 7081 28138
comprehensive expense
loss for the year – – – – 2769 2769
other comprehensive expenseincome
actuarial gain on pension scheme 21 – – – – 839 839
deferred tax on items taken directly to equity 14 – – – – 271 271
total other comprehensive income – – – – 568 568
total comprehensive expense – – – – 2201 2201
transactions with owners
dividends 8 – – – – 816 816
employee share option scheme
– value of services provided 25 – – – 42 – 42
– exercise of awards 25 – – – 12 12 –
net acquisition to shares during the year 24 – – 7 – – 7
new shares issued during the year 2223 96 175 – – – 271
transactions with owners 96 175 7 30 804 510
at 31 march 2014 6865 13833 17 670 4076 25427
the notes on pages 58 to 97 are an integral part of these financial statements
sweett group plc annual report and accounts 2014 56 consolidated and company statements of cash flows 201 4 
for the year ended 31 march 2014
note
group 
£’000
2014 
company
£’000
group
£’000 
2013
company
£’000
cash flows from operating activities
cash flows from operations 27 5658 1603 2167 1800
interest paid 491 257 450 278
income taxes paid 237 – 765 –
net cash generated fromused in operating activities 4930 1346 952 2078
cash flows from investing activities –
interest received 52 – 170 –
proceeds on disposal of available for sale financial assets – – 2772 –
proceeds on disposal of subsidiary – – – 2008
payments to acquire goodwill 10 144 – – –
purchase of property plant and equipment 12 760 – 1013 –
purchase of intangible assets 11 277 – 160 –
decreaseincrease in financial assets 302 – 293 –
settlement of deferred consideration 467 – 1010 –
settlement of vendor liabilities 1526 – – –
net cash generated fromused in investing activities 2820 – 466 2008
cash flows from financing activities
dividends paid 8 816 816 406 406
repayments of borrowings 6375 6375 1333 1333
repayments of obligations under finance leases 7 – 5 –
proceeds on issue of ordinary shares 189 189 – –
cash settlement of derivative financial instrument 390 390 – –
increasedecrease in treasury shares 7 7 50 50
proceeds from borrowings 8083 6043 1750 1750
net cash generated fromused in financing activities 677 1356 56 61
net increasedecrease in cash and cash equivalents 2787 10 1474 9
cash cash equivalents and bank overdrafts at the  
beginning of the year 417 25 1172 34
exchange lossesgains on cash cash equivalents  
and bank overdrafts 313 – 115 –
cash cash equivalents and bank overdrafts at the  
end of the year 17 2891 15 417 25
the notes on pages 58 to 97 are an integral part of these financial statements
financial statements
sweett group plc annual report and accounts 2014 57
governance strategic report notes to the financial statements
1 general information
sweett group plc is a public limited 
company with shares listed on the 
alternative investment market and is 
incorporated and domiciled in the united 
kingdom under the companies act 2006 
the address of the registered office is  
60 gray’s inn road london wc1x 8aq  
the company is the parent company  
of a group of international companies  
and the principal activities of the group 
include the provision of construction cost 
consultancy project management and other 
specialised consultancy services including 
building surveying these activities are 
carried out in europe the middle east  
africa and india meai and asia pacific  
the group’s operating segments
basis of preparation
the group’s and parent company’s 
financial statements have been prepared  
in accordance with international  
financial reporting standards ifrss 
as adopted by the european union  
and the companies act 2006 applicable  
to companies reporting under ifrs as 
they apply to the financial statements  
of the group and the parent company  
for the year ended 31 march 2014  
the consolidated financial statements 
have been prepared on a going concern 
basis and under the historical cost 
convention as modified by the revaluation 
of availableforsale financial assets  
and financial assets and financial liabilities 
including derivatives at fair value through 
profit or loss
the parent company has elected to take 
the exemption under section 408 of the 
companies act 2006 not to present its 
own income statement or statement  
of comprehensive income
going concern
the group’s activities are funded by a 
combination of longterm equity funds  
a reducing loan and overdraft facilities 
from the principal banker  bank of scotland 
plc and other facilities overseas
in considering the ability of the group  
to meet its financial obligations as they  
fall due the board has considered the 
expected trading performance of the  
group including pressures on margins 
working capital requirements the level  
of overheads and interest to be funded  
and loan repayments
the board has modelled a wide range  
of scenarios in respect of each of these 
variables with particular regard to future 
compliance with the financial covenants  
to bank of scotland plc listed in the 
preceding financial review
the directors believe that the principal 
sensitivities and actions which can have 
the greatest impact on the headroom  
in the covenant compliance include
•  trading performance and managing 
working capital requirements across  
the group
•  ensuring recovery of retentions  
amounting to £1m on a middle east 
contract the directors have no reason  
to believe that the outstanding sums  
will not be recovered though timing 
is uncertain
the directors are confident that they  
have the right strategy and action plan  
to operate within the requirements of the 
bank covenants and on this basis have  
a reasonable expectation that the group 
has adequate resources to continue in 
operational existence for the foreseeable 
future for this reason they continue to 
adopt the going concern basis in preparing 
the group’s financial statements
2 significant accounting policies
the principal accounting policies in the 
preparation of this financial information are 
set out below these policies have been 
consistently applied to financial statements 
for the years ended 31 march 2014 and  
31 march 2013 unless otherwise stated
adoption of new and revised 
standards 
the following accounting standards and 
amendments to accounting standards 
have been adopted by the group for the 
first time for the financial year beginning 
on 1 april 2013 and have an impact on  
the group 
i the amendment to ias 1 ‘financial 
statement presentation’ whereby other 
comprehensive incomeloss is now 
grouped on the basis of whether such 
incomeloss is potentially reclassifiable  
to profit or loss 
ii ias 19 revised ‘employee benefits’ 
see note 21 for further information 
the following accounting standards are 
effective for accounting periods beginning 
on or after 1 january 2014 and have not 
yet been adopted by the group 
i ifrs 9 ‘financial instruments’ the 
standard addresses the classification 
measurement and recognition of financial 
assets and liabilities 
the group has yet to assess the full 
impact of this accounting standard 
ii ifrs 10 ‘consolidated financial 
statements’ this standard builds on 
existing principles by identifying the 
concept of control as the determining 
factor in whether an entity should be 
included in the consolidated financial 
statements the group has yet to assess 
the full impact of this standard
there are no other ifrss or ifric 
interpretations that are not yet effective 
that would be expected to have a material 
impact on the group
basis of consolidation
the consolidated financial statements 
incorporate the financial information of 
sweett group plc and all of its subsidiary 
undertakings made up to 31 march 2014 
adjusted to eliminate intragroup balances 
transactions income and expenses  
the group has used the acquisition 
method of accounting to consolidate the 
results of subsidiary undertakings entities 
over which the group has the power to 
govern the financial and operating policies 
of the subsidiary which are included from 
the date of acquisition
business combinations are accounted  
for under the acquisition method  
on acquisition the identifiable assets 
liabilities and contingent liabilities of a 
subsidiary are measured at their fair values 
at the date of acquisition any excess of  
the cost of acquisition over the fair values 
of the identifiable net assets acquired is 
recognised as goodwill any deficiency  
of the cost of acquisition below the fair 
values of the identifiable net assets 
acquired ie discount on acquisition  
is credited to the income statement in  
the period of acquisition
sweett group plc annual report and accounts 2014 58 2 significant accounting policies 
continued
the consideration transferred for an 
acquisition is measured at fair value of the 
consideration given equity instruments 
issued and liabilities incurred or assumed  
at the date of exchange this includes  
any contingent consideration acquisition 
related costs are expensed as incurred 
identifiable assets acquired and liabilities 
and contingent liabilities assumed in a 
business combination are measured initially 
at their fair values at the acquisition date
any contingent consideration to be 
transferred by the group is recognised  
at fair value at the acquisition date 
subsequent changes to the fair value  
of the contingent consideration that is 
deemed to be an asset or liability is 
recognised in accordance with ias 39  
in profit or loss except for those arising  
on acquisitions before 2010 contingent 
consideration that is classified as equity  
is not remeasured and its subsequent 
settlement is accounted for within equity
investments in subsidiaries are stated  
at cost less provisions for impairment 
where appropriate
the results of subsidiaries acquired or 
disposed of during the year are included 
in the consolidated income statement 
from the effective date of acquisition  
or up to the effective date of disposal  
as appropriate being the date at which 
control passes
where necessary adjustments are made 
to the financial information of subsidiaries 
to bring the accounting policies used into 
line with those used by the group
all intragroup transactions and balances 
are eliminated on consolidation
segmental reporting
operating segments are reported in  
a manner consistent with the internal 
reporting provided to the chief operating 
decisionmaker the chief operating 
decisionmaker who is responsible for 
allocating resources and assessing 
performance of the operating segments 
has been identified as the board
unallocated corporate costs are costs 
incurred centrally which are neither directly 
nor reasonably attributable to individual 
segments unallocated assets and liabilities 
include certain items which cannot be 
directly attributed to individual segments
foreign currency translation
transactions in foreign currencies are 
translated at the exchange rate ruling  
at the date of the transaction at each 
balance sheet date monetary assets and 
liabilities that are denominated in foreign 
currencies are retranslated at the rates 
prevailing on the balance sheet date 
gains and losses arising on retranslation 
are included in the income statement 
translation differences on nonmonetary 
financial assets such as equities classified 
as available for sale are included in other 
comprehensive income gains or losses  
on the translation of opening and closing 
net assets of subsidiary undertakings 
denominated in foreign currencies are 
recognised in other comprehensive income
the consolidated financial information  
is presented in pounds sterling which is  
the company’s functional and presentation 
currency on consolidation income 
statements and cash flows of foreign 
entities are translated into pounds sterling 
at average exchange rates for the year 
and their balance sheets are translated at 
the exchange rates ruling at the balance 
sheet date
goodwill and fair value adjustments arising 
on the acquisition of a foreign entity are 
treated as assets and liabilities of the foreign 
entity and translated at the exchange rate 
ruling at the balance sheet date
the group through its ownership of 
branches and subsidiaries based outside 
the uk has foreign currencydenominated 
assets and liabilities to mitigate the effect 
of currency exposure arising from net 
investments overseas the group selectively 
hedges those exposures where material 
using borrowings denominated in foreign 
currency or financial hedging instruments
the financial statements are presented in 
sterling to the nearest thousand £’000
revenue recognition
revenue is measured at the fair value of 
the consideration received or receivable 
and represents amounts receivable for 
services provided in the normal course of 
business net of discounts value added 
tax and other sales related taxes and after 
eliminating intragroup sales
contract work in progress
when the outcome of a construction contract 
can be estimated reliably and it is probable 
that the contract will be profitable contract 
revenue is recognised over the period of the 
contract by reference to the stage of 
completion contract costs are recognised 
as expenses by reference to the stage  
of completion of the contract activity at  
the end of the reporting period when it  
is probable that total contract costs  
will exceed total contract revenue the 
expected loss is recognised as an expense 
immediately when the outcome of a 
construction contract cannot be estimated 
reliably contract revenue is recognised 
only to the extent of contract costs 
incurred that are likely to be recoverable 
variations in contract work claims and 
incentive payments are included in contract 
revenue to the extent that it may have been 
agreed with the customer and are capable 
of being reliably measured the group 
uses the ‘percentageofcompletion method’ 
to determine the appropriate amount to 
recognise in a given period the stage of 
completion is measured by reference to the 
contract costs incurred up to the end of the 
reporting period as a percentage of total 
estimated costs for each contract costs 
incurred in the year in connection with 
future activity on a contract are excluded 
from contract costs in determining the 
stage of completion on the balance sheet 
the group reports the net contract position 
for each contract as either an asset or a 
liability a contract represents an asset 
where costs incurred plus recognised 
profits less recognised losses exceed 
progress billings a contract represents a 
liability where the opposite is the case
where the outcome of a contract cannot  
be estimated reliably contract revenue  
is recognised to the extent of contract  
costs incurred that it is probable will be 
recoverable contract costs are recognised 
as expenses in the period in which they  
are incurred when it is probable that total 
contract costs will exceed total contract 
revenue the expected loss is recognised  
as an expense immediately
precontract costs
precontract costs are capitalised and 
treated as work in progress only if they can 
be separately identified measured reliably 
and it is probable that the related contract 
will be won until this time all such costs 
are expensed to the income statement  
in the period in which they are incurred  
to the extent that contract terms do not 
allow for recoupment of bid costs at 
financial close of ppp contracts such 
costs are amortised over the length of 
each contract
financial statements
sweett group plc annual report and accounts 2014 59
governance strategic report notes to the financial statements
continued
2 significant accounting policies 
continued
timebased contracts
revenue on timebased products  
is recognised in line with labour  
hours delivered
finance income
interest income is recognised in the 
income statement as it is earned
finance cost
interest expense is recognised in  
the income statement as it accrues
changes in fair value of derivative 
instruments that do not qualify for  
hedge accounting or have not been 
designated as hedges are recognised  
in the income statement within finance 
costsincome as they arise
dividends
dividend income is recognised when the 
right to receive payment is established
intangible assets
i goodwill
goodwill arising on consolidation 
represents the excess of the cost of 
acquisition over the group’s interest in  
the fair value of the identifiable assets  
and liabilities of a subsidiary at the date  
of acquisition
for subsidiaries goodwill is recognised  
as an intangible asset and is tested at least 
annually for impairment or more frequently 
if events or changes in circumstances 
indicate potential impairment any 
impairment is recognised immediately  
in the income statement and is not 
subsequently reversed on disposal of  
a subsidiary the attributable amount of 
goodwill is included in the determination  
of the profit or loss on disposal
goodwill is allocated to cash generating 
units cgus for the purpose of impairment 
testing the allocation is made to those 
cgus that are expected to benefit from  
the business combination in which the 
goodwill arose identified according to 
operating segments
goodwill is held at cost less accumulated 
impairment losses
ii computer software
acquired computer software licences are 
capitalised on the basis of costs incurred 
to acquire and bring to use the specific 
software computer software licences  
are held at cost and amortised on  
a straightline basis over four years
costs associated with developing  
or maintaining computer software 
programs are recognised as an expense 
as incurred costs directly associated  
with identifiable and unique software 
products controlled by the group and 
which are expected to generate economic 
benefits beyond one year are recognised 
as intangible assets and amortised over  
their estimated useful economic lives
computer software is held at cost less 
accumulated amortisation and any 
impairment losses
iii other intangible assets
other intangible assets identified in a 
business combination are capitalised  
at fair value as at the date of acquisition 
following initial recognition the carrying 
amount of such an intangible asset is its 
cost less any accumulated amortisation 
and any accumulated impairment loss 
useful economic lives of intangible assets 
are assessed on acquisition to be either 
indefinite or finite amortisation is charged 
as appropriate on those intangibles with 
finite lives
the identified fair value of customer 
relationships and order books acquired  
on business combinations is being 
amortised over a period of between  
seven and ten years
property plant and equipment
property plant and equipment mainly 
comprises furniture fixtures and 
equipment and is shown at cost less 
subsequent accumulated depreciation 
and impairment cost includes 
expenditure that is directly attributable  
to the acquisition of these assets
subsequent costs are included in the 
asset’s carrying amount only when it is 
probable that future economic benefits 
associated with the item will flow to  
the group and the cost of the item  
can be measured reliably repairs and 
maintenance are charged to the income 
statement during the financial period in 
which they are incurred
depreciation is calculated to write off  
their cost less residual value over their 
expected useful lives
the rates of depreciation used for  
the assets are as follows
fixtures and fittings  20  
– straight line
computer hardware  25 – 50 
– straight line
the assets’ residual values and useful 
lives are reviewed and adjusted if 
appropriate at each balance sheet date
the gain or loss arising on the disposal  
or retirement of an asset is determined as  
the difference between the sales proceeds 
and the carrying amount of the asset  
and is included in the income statement
impairment of nonfinancial assets
assets that have an indefinite useful life  
for example goodwill are not subject  
to amortisation and are tested annually  
for impairment and whenever events or 
changes in circumstance indicate that the 
carrying amount may not be recoverable 
assets that are subject to amortisation and 
depreciation are tested for impairment 
whenever events or changes in circumstances 
indicate that the carrying amount may  
not be recoverable an impairment loss  
is recognised for the amount by which  
the asset’s carrying amount exceeds its 
recoverable amount the recoverable 
amount is the higher of an asset’s fair 
value less costs to sell and value in use 
nonfinancial assets other than goodwill 
that suffered impairment are reviewed for 
possible reversal of the impairment at  
each reporting date
provisions
provisions are recognised when the 
group has a present obligation legal or 
constructive as a result of a past event  
it is probable that the group will be 
required to settle the obligation and a 
reliable estimate can be made of the 
amount of the obligation the amount 
recognised as a provision at the balance 
sheet date is the best estimate of the 
consideration required to settle the 
present obligation taking into account  
the risks and uncertainties surrounding 
the obligation where there is a material 
effect the expected future payments are 
discounted when some or all of the 
economic benefits required to settle a 
provision are expected to be recovered 
from a third party the receivable is 
recognised as an asset only if it is  
virtually certain that reimbursement  
will be received and the amount of the 
receivable can be measured reliably
sweett group plc annual report and accounts 2014 60 2 significant accounting policies 
continued
financial assets
financial assets are classified as ‘available 
for sale’ financial assets and ‘loans and 
receivables’ available for sale financial 
assets are non derivative financial assets 
and are recorded at fair value less 
transaction costs gains and losses 
arising from changes in fair value are 
recognised directly in the statement of 
comprehensive income until the asset  
is disposed of or is determined to be 
impaired at which time the cumulative 
gain or loss previously recognised in 
equity is included in the income statement 
for the period impairment losses on 
available for sale financial assets are  
not reversed loans and receivables are 
classified as financial assets when they 
are nonderivative financial assets with 
fixed or determinable payments that are 
not quoted in an active market and are 
initially measured at fair value and 
subsequently measured at amortised  
cost using the effective interest method 
less accumulated impairment losses
trade receivables
trade receivables are carried at original 
invoice amount less provision made for 
impairment of these receivables a provision 
for impairment of trade receivables is 
established when there is objective 
evidence that the group will not be able  
to collect all amounts due according to the 
original terms the amount of the provision 
is recognised in administrative expenses
cash and cash equivalents
cash and cash equivalents include cash 
in hand and deposits held with banks 
bank overdrafts are shown within current 
financial liabilities on the balance sheet
for the purposes of the statement of cash 
flows cash and cash equivalents are net 
of bank overdrafts
share capital
ordinary shares are classified as equity
incremental costs directly attributable to 
the issue of new shares or options are 
shown in equity as a deduction net of tax 
from the proceeds
where any group company purchases the 
company’s equity share capital treasury 
shares the consideration paid including  
any directly attributable incremental costs 
net of income taxes is deducted from equity 
attributable to the company’s equity owners 
until the shares are cancelled or reissued 
where such shares are subsequently 
reissued any consideration received  
net of any directly attributable incremental 
transaction costs and the related income  
tax effects is included in equity attributable 
to the owners of the parent
impairment of financial assets
a assets carried at amortised cost
the group assesses at the end of each 
reporting period whether there is objective 
evidence that a financial asset or group  
of financial assets is impaired a financial 
asset or a group of financial assets is 
impaired and impairment losses are 
incurred only if there is objective evidence 
of impairment as a result of one or more 
events that occurred after the initial 
recognition of the asset a ‘loss event’ 
and that loss event or events has an 
impact on the estimated future cash flows 
of the financial asset or group of financial 
assets that can be reliably estimated
the criteria that the group uses to 
determine that there is objective evidence 
of an impairment loss include
•  significant financial difficulty of the 
issuer or obligor
•  a breach of contract such as a default 
or delinquency in interest or principal 
payments
•  the group for economic or legal 
reasons relating to the borrower’s 
financial difficulty granting to the 
borrower a concession that the lender 
would not otherwise consider
•  it becomes probable that the borrower 
will enter bankruptcy or other financial 
reorganisation
•  the disappearance of an active market 
for that financial asset because of 
financial difficulties or
•  observable data indicating that there is 
a measurable decrease in the estimated 
future cash flows from a portfolio  
of financial assets since the initial 
recognition of those assets although 
the decrease cannot yet be identified 
with the individual financial assets in the 
portfolio including adverse changes in 
the payment status of borrowers in the 
portfolio and national or local economic 
conditions that correlate with defaults 
on the assets in the portfolio
the group first assesses whether 
objective evidence of impairment exists
the amount of the loss is measured  
as the difference between the asset’s 
carrying amount and the present value  
of estimated future cash flows excluding 
future credit losses that have not been 
incurred discounted at the financial 
asset’s original effective interest rate  
the asset’s carrying amount is reduced 
and the amount of the loss is recognised  
in the consolidated income statement  
if a loan or heldtomaturity investment  
has a variable interest rate the discount 
rate for measuring any impairment loss  
is the current effective interest rate 
determined under the contract as a 
practical expedient the group may 
measure impairment on the basis of  
an instrument’s fair value using an 
observable market price
if in a subsequent period the amount  
of the impairment loss decreases and the 
decrease can be related objectively to an 
event occurring after the impairment was 
recognised such as an improvement in 
the debtor’s credit rating the reversal  
of the previously recognised impairment 
loss is recognised in the consolidated 
income statement
b assets classified as available for sale
the group assesses at the end of each 
reporting period whether there is objective 
evidence that a financial asset or a group  
of financial assets is impaired for debt 
securities the group uses the criteria 
referred to in a above in the case of 
equity investments classified as available
forsale a significant or prolonged decline 
in the fair value of the security below its 
cost is also evidence that the assets are 
impaired if any such evidence exists  
for availableforsale financial assets  
the cumulative loss – measured as the 
difference between the acquisition  
cost and the current fair value less any 
impairment loss on that financial asset 
previously recognised in profit or loss  
– is removed from equity and recognised 
in the consolidated income statement 
impairment losses recognised in the 
consolidated income statement on equity 
instruments are not reversed through the 
consolidated income statement if in  
a subsequent period the fair value of a  
debt instrument classified as available 
forsale increases and the increase  
can be objectively related to an event 
occurring after the impairment loss  
was recognised in profit or loss the 
impairment loss is reversed through  
the consolidated income statement 
financial statements
sweett group plc annual report and accounts 2014 61
governance strategic report notes to the financial statements
continued
2 significant accounting policies 
continued
impairment testing of trade receivables  
is described in note 16
financial liabilities
financial liabilities are classified as either 
financial liabilities ‘at fair value through 
profit or loss’ or other financial liabilities 
financial liabilities carried at fair value 
through profit or loss are initially 
recognised at fair value and transaction 
costs are expensed in the profit for the 
financial year gains or losses arising from 
changes in the fair value of the financial 
liabilities at fair value through profit or loss 
category are presented in the profit for  
the financial year
other financial liabilities including 
borrowings are initially measured at fair 
value net of transaction costs and 
subsequently at amortised cost
financial assets and financial liabilities  
are recognised in the group’s balance 
sheet when the company becomes  
a party to the contractual provisions  
of the instrument financial liabilities are 
presented as current liabilities if expected 
to be settled within 12 months otherwise 
they are classified as noncurrent
derivative financial instruments and 
hedge accounting
derivatives are initially recognised at fair 
value on the date a derivative contract  
is entered into and are subsequently 
remeasured at their fair value the method 
of recognising the resulting gain or loss 
depends on whether the derivative is 
designated as a hedging instrument and  
if so the nature of the item being hedged 
the group designates certain derivatives 
as hedges of a net investment in a foreign 
operation net investment hedge
any gain or loss on the hedging instrument 
relating to the effective portion of a net 
investment hedge is recognised in other 
comprehensive income the gain or  
loss relating to the ineffective portion is 
recognised in the income statement
gains and losses accumulated in equity 
are included in the income statement 
when the foreign operation is partially 
disposed of or sold
changes in fair value of derivative instruments 
that do not qualify for hedge accounting 
or have not been designated as hedges 
are recognised in the income statement 
within finance costsincome as they arise 
these derivative instruments are designated 
at fair value through profit or loss
borrowings
interestbearing bank loans and overdrafts 
are initially recorded at the proceeds received 
net of direct issue costs finance charges 
including premiums payable on settlement 
or redemption and direct issue costs  
are accounted for on an accruals basis in 
the income statement using the effective 
interest method and are added to the 
carrying amount of the instrument to  
the extent that they are not settled in  
the period in which they arise
trade payables
trade payables are recognised initially  
at fair value and subsequently measured 
at amortised cost
leases
leases of property plant and equipment 
by which the group has substantially all 
the risks and rewards of ownership are 
classified as finance leases finance 
leases are capitalised at the inception of  
the lease at the lower of fair value and the 
estimated present value of the underlying 
lease payments with a corresponding 
liability established each lease payment is 
allocated between the liability and finance 
charges so as to achieve a constant  
rate of interest on the finance balance 
outstanding the corresponding rental 
obligations net of finance charges are 
included in liabilities the interest element  
of the finance cost is charged to the 
income statement over the lease period 
property plant and equipment acquired 
under finance leases are depreciated over 
the shorter of the asset’s useful life and 
the lease term leases where a significant 
portion of the risks and rewards of 
ownership are retained by the lessor are 
classified as operating leases payments 
made under operating leases are charged 
to the income statement on a straightline 
basis over the period of the lease
taxation
the tax expense represents the sum of 
the tax currently payable and deferred tax 
the tax currently payable is based on 
taxable profit for the year taxable profit 
differs from net profit as reported in the 
income statement because it excludes 
items of income or expense that are 
taxable or deductible in other years and  
it further excludes items that are never 
taxable or deductible the group liability 
for current tax is calculated using tax rates 
that have been enacted or substantively 
enacted by the balance sheet date
deferred tax is the tax expected to be 
payable or recoverable on differences 
between the carrying amount of assets  
and liabilities in the financial information  
and the corresponding tax bases used in 
the computation of taxable profit and is 
accounted for using the liability method 
deferred tax is not accounted for if it arises 
from initial recognition of an asset or liability 
in a transaction other than in a business 
combination that at the time of the 
transaction affects neither accounting  
nor taxable profit or loss deferred tax  
is determined using tax rates and laws  
that have been enacted or substantively 
enacted by the balance sheet date and are 
expected to apply when the related tax 
asset is realised or the tax liability is settled
deferred tax assets are recognised to the 
extent that it is probable that future taxable 
profit will be available against which the 
temporary differences can be utilised
deferred tax is provided on temporary 
differences arising on investments in 
subsidiaries except where the timing of 
the reversal of the temporary difference is 
controlled by the group and it is probable 
that the temporary difference will not 
reverse in the foreseeable future deferred 
tax relating to items recognised directly  
in equity is recognised in equity and not  
in the consolidated income statement
deferred income tax assets and  
liabilities are offset when there is a  
legally enforceable right to offset current  
tax assets against current tax liabilities 
and when the deferred income tax assets 
and liabilities relate to income taxes levied 
by the same taxation authority on either 
the same taxable entity or different taxable 
entities where there is an intention to settle 
the balance on a net basis
sweett group plc annual report and accounts 2014 62 2 significant accounting policies 
continued
employee benefits
pension obligations
group companies operate various 
pension schemes the schemes are 
funded through payments to insurance 
companies or trusteeadministered funds 
the group has both defined benefit and 
defined contribution plans a defined 
benefit plan is a pension plan that defines 
an amount of pension benefit that an 
employee will receive on retirement 
usually dependent on one or more  
factors such as age years of service  
and compensation the pension cost  
for defined benefit schemes is assessed  
in accordance with the advice of  
qualified independent actuaries
the liability records the defined benefit 
obligation at the balance sheet date less 
the fair value of plan assets independent 
actuaries calculate the obligation annually 
using the “projected unit” funding method 
actuarial gains and losses are recognised 
in full in the period in which they occur 
they are not recognised in the income 
statement and are presented in the 
statement of comprehensive income
a defined contribution plan is a pension  
plan under which the group pays fixed 
contributions into a separate entity  
the group has no legal or constructive 
obligations to pay further contributions if the 
fund does not hold sufficient assets to pay all 
employees the benefits relating to employee 
service in the current and prior periods 
contributions are recognised as an expense 
in the income statement when they are due
share based payments
the company operates executive and 
employee share schemes for all grants  
of share options and awards with the 
exception of those under the performance 
share plan psp the fair value as at  
the date of grant is calculated using the 
blackscholes option pricing model and 
the corresponding expense is recognised 
over the period to which the associated 
employee’s service relates the company 
has taken advantage of the transitional 
provisions of ifrs 2 only to recognise 
equity settled awards granted after  
7 november 2002 that had not vested 
before 1 january 2005 for the nilcost 
options granted under the performance 
share plan which can be settled in cash 
or shares the cost is estimated at the 
balance sheet date based on the level at 
which the conditions have been met and 
accrued through the income statement
at the end of each reporting period  
the group revises its estimates of the 
number of options that are expected to 
vest based on the nonmarket vesting 
conditions the group recognises the 
impact of the revision to original estimates 
if any in the income statement with  
a corresponding adjustment to equity
the grant by the company of options over 
its equity instruments to the employees  
of subsidiary undertakings in the group 
 is treated as a capital contribution  
the fair value of employee services 
received measured by reference to 
the grant date fair value is recognised 
over the vesting period as an increase to 
investment in subsidiary undertakings 
with a corresponding credit to equity
employee benefit trust ebt
the company’s ebt is a separately 
administered discretionary trust for the 
benefit of employees the assets of  
the ebt mainly comprise shares in the 
company the assets liabilities income  
and costs of the ebt are consolidated in the 
financial information the investment in own 
shares is treated as a deduction in equity
dividend distribution
dividend distribution to the company’s 
shareholders is recognised as a liability  
in the group’s accounts in the period  
in which the dividends are approved  
by the company’s shareholders
exceptional and other items
exceptional items are those that the 
directors consider are of such unusual 
size or nature that they are required to  
be separately disclosed to allow the user 
of the financial statements to understand 
the underlying performance of the group 
these are shown on the face of the 
income statement as exceptional 
administrative expenses
other items which are recurring in nature 
but which warrant separate disclosures 
include the amortisation of acquired 
intangibles and the performance share 
plan psp the costs of which we are 
accruing for the first time
earnings and diluted earnings per  
share are calculated after exceptional  
and other items whilst earnings per  
share before exceptional administration 
expenses are calculated after amortisation 
of acquired intangibles
critical accounting estimates and 
significant judgements
the preparation of the financial 
information requires the group to make 
estimates judgements and assumptions 
that affect the reported amounts of 
assets liabilities revenues and expenses 
and related disclosure of contingent 
assets and liabilities the directors base 
their estimates on historical experience 
and various other assumptions that  
they believe are reasonable under the 
circumstances the results of which form 
the basis for making judgements about 
the carrying value of assets and liabilities 
that are not readily apparent from other 
sources actual results may differ from 
these estimates under different assumptions 
or conditions
the estimates and assumptions that have  
a significant risk of causing a material 
adjustment to the carrying amounts of 
assets and liabilities all of which are on  
the basis that the group is a going 
concern as addressed in note 1 to these 
financial statements are addressed below
a carrying value of goodwill
the group tests annually whether  
goodwill has suffered any impairment  
in accordance with the group’s accounting 
policy in determining the recoverable 
amount of all cash generating units it is 
necessary to make a series of assumptions 
to estimate the present value of future  
cash flows in each case these key 
assumptions have been made by 
management reflecting past experience 
and future expectations the main 
assumptions within forecast operating 
cash flows include the achievement of 
future sales the costs to be incurred  
and the anticipated after tax profit  
further details are given in note 10
the goodwill has a carrying value of 
£152m 2013 £163m at the year end
financial statements
sweett group plc annual report and accounts 2014 63
governance strategic report notes to the financial statements
continued
2 significant accounting policies 
continued
b deferred contingent consideration
where deferred consideration in respect 
of acquisitions is payable this may be 
contingent upon future events or the 
acquired business’s performance  
the most probable outcome of these 
future events is estimated to ascertain  
the fair value of the obligation any change 
to this outcome will be reflected in the 
statement of comprehensive income in 
future periods unless affected by the 
transitional provisions in ifrs 3 revised 
further details are given in note 20 
c revenue recognition
the group uses the percentage of 
completion method in accounting for its 
fixed price contracts to deliver services 
use of the percentage of completion 
method requires the group to estimate 
the work performed to date as a proportion 
of the expected work for the whole contract 
in respect of precontract costs where 
such costs relate to a pfi or ppp bid  
a view is taken as to probability of award 
with reference to progress on contract 
negotiations and the likely date of 
achievement of preferred bidder status 
the group will also assess the ability  
to bill and collect these amounts when 
determining revenue to be recognised 
due to the volume and complexity of  
the group’s many contracts in existence  
at any one time it is not practicable to 
quantify how changes to the assumptions 
used for each individual contract would 
affect the group’s financial statements
d available for sale financial assets
the group classifies each of its 
investments in pfi and ppp projects  
as available for sale financial assets  
the value of these is assessed at the 
balance sheet date based on offers 
received or contracted by third parties  
for the sale of equivalent assets
e impairment of trade receivables
the group assesses at the balance sheet 
date whether there is objective evidence 
of impairment of trade receivables 
evidence of impairment may include  
that a debtor or group of debtors is 
experiencing financial difficulty default  
in payments the probability that they  
will enter bankruptcy or other financial 
reorganisation or where observable  
data indicate that there is a measurable 
decrease in the estimated future cash 
flows such as changes in arrears or 
economic conditions which correlate  
with defaults
f pension benefits
the present value of the pension 
obligations depends on a number of 
factors that are determined on an actuarial 
basis using a number of assumptions  
the assumptions used in determining  
the net cost for pensions include the 
discount rate any changes in these 
assumptions will impact the carrying 
amount of pension obligations
other key assumptions for pension 
obligations are based in part on current 
market conditions additional information 
is disclosed in note 21
sweett group plc annual report and accounts 2014 64 3 segmental analysis
operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker 
the chief operating decisionmaker who is responsible for allocating resources and assessing performance of the operating 
segments has been identified as being the board
the board considers sweett group’s business and internal reporting by geography being europe the middle east africa  india and 
asia pacific the investments business which was previously reported as a separate segment is dealt with as part of europe and 
comparatives have been adjusted since its future size does not warrant separate identification all three categories generate revenues 
from the provision of quantity surveying project management and specialist servicesmanagement consultancy and the europe 
business generated profits on the disposal of its ppppfi financial assets available for sale
the board assesses performance based on a measure of earnings before interest and tax ebit this measurement is net of 
intragroup trading balances and this basis excludes the effects of corporate and central costs interest income and expenditure  
are not included in the results for each operating segment that is reviewed by the board
2014
europe
£’000
middle east 
africa and 
india
£’000
asia 
pacific
£’000 
total
£’000
gross revenue 49280 11763 28568 89611
intersegment revenue – 213 – 213
external revenue 49280 11550 28568 89398
segment results before amortisation of acquired intangibles  
and exceptional administrative expenses 5686 115 1299 7100
amortisation of acquired intangibles 100 33 324 457
exceptional administrative expenses 392 81 282 755
segment results after amortisation of acquired intangibles  
and exceptional administrative expenses 5194 1 693 5888
unallocated corporate costs 3578
finance income 1007
finance expense 491
profit before taxation 2826
income tax expense 932
profit for the year 1894
other profit and loss disclosures
europe
£’000
middle east 
africa and 
india
£’000
asia 
pacific
£’000 
total
£’000
external revenue by service provided
cost consultancyquantity surveying 29333 5374 24610 59317
project management 10998 5930 2859 19787
specialist servicesmanagement consultancy 8949 246 1099 10294
49280 11550 28568 89398
depreciation of property plant and equipment 342 88 428 858
amortisation of computer software 324 22 56 402
amortisation of acquired intangibles 100 33 324 457
  unallocated corporate costs comprise directors’ remuneration advertising public relations corporate financing costs legal and professional fees and exceptional 
administrative expenses incurred by sweett group plc they include for the year ended 31 march 2014 £768000 2013 £170000 of exceptional administrative 
expenses and £609000 2013 £nil performance share plan charges
financial statements
sweett group plc annual report and accounts 2014 65
governance strategic report notes to the financial statements
continued
3 segmental analysis continued
balance sheet disclosures
europe
£’000
middle east 
africa and 
india
£’000
asia 
pacific
£’000 
total
£’000
segmental assets 27307 7065 27200 61572
segmental liabilities 21895 2295 10029 34219
capital additions 375 156 506 1037
the group is domiciled in the uk its revenue from external customers in the uk is £474m 2013 £407m and from external 
customers from other countries is £420m 2013 £399m
capital additions comprise the acquisition of property plant and equipment and other intangible assets
the assets of the segments include intangible assets property plant and equipment assets from finance leases financial assets 
trade and other receivables deferred tax assets and cash and cash equivalents the liabilities comprise trade and other payables 
current tax liabilities financial liabilities deferred tax liabilities provisions and retirement benefit obligations
the total of noncurrent assets other than financial instruments and deferred taxation located in the uk is £135m 2013 £136m  
and the total of such noncurrent assets in other countries is £59m 2013 £75m
sales between segments are transacted at arm’s length external revenue reported to the board is measured in a manner consistent 
with that in the income statement
2013
europe
£’000
middle east 
africa and 
india
£’000
asia 
pacific
£’000 
total
£’000
gross revenue 44182 12166 25987 82335
intersegment revenue 1468 231 – 1699
external revenue 42714 11935 25987 80636
segment results before amortisation of acquired intangibles  
and exceptional administrative expenses 3720 1282 1287 6289
amortisation of acquired intangibles 100 33 347 480
exceptional administrative expenses 472 456 357 1285
segment results after amortisation of acquired intangibles  
and exceptional administrative expenses 3148 793 583 4524
unallocated corporate costs 2184
finance income 170
finance expense 735
profit before taxation 1775
income tax expense 476
profit for the year 1299
sweett group plc annual report and accounts 2014 66 3 segmental analysis continued
other profit and loss disclosures
europe
£’000
middle east 
africa and 
india
£’000
asia 
pacific
£’000 
total
£’000
external revenue by service provided
cost consultancyquantity surveying 22143 8109 19411 49663
project management 13903 3333 5101 22337
specialist servicesmanagement consultancy 6668 493 1475 8636
42714 11935 25987 80636
net profit on investment activities 1389 – – 1389
depreciation of property plant and equipment 362 78 359 799
amortisation of computer software 332 57 38 427
amortisation of acquired intangibles 100 33 347 480
net profit on investment activities £’000
gross proceeds on disposal of available for sale financial assets 5143
net costs of disposal 3437
profit on disposal 1706
amortisation of bid costs 317
net profit on investment activities 1389
balance sheet disclosures
europe
£’000
middle east 
africa and 
india
£’000
asia 
pacific
£’000 
total
£’000
segmental assets 28358 7330 26007 61695
segmental liabilities 23007 1820 8914 33741
capital additions 370 123 680 1173
4 net finance incomecosts
2014
£’000 
2013
£’000
finance income
interest receivable on bank deposits 3 8
interest receivable on loan notes 34 132
change in fair value of derivative financial instrument 970 –
dividend income on available for sale financial assets – 30
1007 170
finance costs
interest payable on bank and other borrowings 486 440
interest expense on unwinding of discount – 13
change in fair value of derivative financial instrument – 272
finance leases 1 2
other interest payable 4 8
491 735
net finance incomecosts 516 565
the change in fair value of derivative financial instrument relates to a forward foreign exchange contract to hedge advances in  
australian dollars to a subsidiary company the bulk of which were capitalised in september 2011 this was rolled into a replacement 
instrument on maturity in march 2012 and subsequently in march 2013 in september 2013 the contract was fully exited resulting in  
the positive fair value adjustment of £970000 in finance income above
interest expense on unwinding of discount relates to the notional interest on deferred acquisition consideration
financial statements
sweett group plc annual report and accounts 2014 67
governance strategic report notes to the financial statements
continued
5 profit before taxation is stated after chargingcrediting
2014
£’000 
2013
£’000
employee benefit expense note 6 55670 51346
depreciation of property plant and equipment 858 799
amortisation of intangible assets 859 907
impairment loss recognised on trade receivables 443 443
operating lease rentals 3151 3156
auditors’ remuneration see below 254 269
exchange lossgain 408 169
performance share plan charges and associated costs see below 609 –
2014
£’000 
2013
£’000
services provided by the company’s auditors and its associates
auditors’ remuneration for the statutory audit
– parent company and group consolidation 20 20
– audit of subsidiary companies 160 158
fees payable to the company’s auditors and its associates for other services
– taxation compliance services 50 85
– other nonaudit services 24 6
254 269
for the first year we are showing a cost associated with the performance share plan of £609000 2013 £nil this represents 
management’s best estimate of the accrued cost of the three live schemes as at the balance sheet date
exceptional administrative expenses
2014
£’000 
2013
£’000
restructuring costs 978 929
interest on vendor liabilities 55 356
costs associated with investigating the wall street journal allegations 490 –
costs associated with the general meeting of 9 may 2013 – 170
1523 1455
exceptional administrative expenses are those that the directors consider are of such unusual size or nature that they are required  
to be separately disclosed to allow the user of the financial statements to understand the underlying performance of the group 
notwithstanding that such items may be recurring in nature these are shown on the face of the income statement as exceptional 
administrative expenses
restructuring costs comprise redundancy costs of £03m 2013 £05m and other restructuring costs of £07m 2013 £04m
interest on vendor liabilities comprises interest on latepaid sums to the vendors of widnell limited now fully settled
a requisition for a general meeting of shareholders eventually held on 9 may 2013 was received in march 2013 and the costs were 
accordingly expensed in the year to 31 march 2013
sweett group plc annual report and accounts 2014 68 6 directors and employees
2014
£’000 
2013
£’000
staff costs including directors were as follows
wages and salaries 49856 45544
social security costs 2810 2747
share based payments 42 40
redundancy costs 259 475
other pension costs
defined contribution plan 2703 2540
total employee benefit expense 55670 51346
the monthly average number of employees including directors during the year
2014 
number
2013 
number
fee earners 1260 1149
administration 210 208
total staff 1470 1357
at the year end the accounts included unpaid pension contributions of £67000 2013 £61000
group
2014
£’000 
2013
£’000
directors’ emoluments
aggregate remuneration 964 869
company contributions to money purchase pension schemes 53 57
1017 926
2014
£’000 
2013
£’000
highest paid director
aggregate emoluments 245 212
company contributions to money purchase pension scheme 22 22
267 234
the highest paid director did not exercise options during the year or the previous year
2014
number 
2013
number
number of directors earning pension entitlement through company money 
purchase pension scheme 5 4
directors exercising share options
number of directors exercising share options 1 –
key management of the group are considered to be the directors of the company
financial statements
sweett group plc annual report and accounts 2014 69
governance strategic report notes to the financial statements
continued
7 income tax expense
a analysis of charge in the year
2014
£’000 
2013
£’000
current tax
uk corporation tax 571 360
overseas tax 626 537
adjustments in respect of previous years 147 296
1050 601
deferred taxation
origination and reversal of temporary differences – note 15 259 17
adjustments in respect of previous years 141 108
income tax expense – note 7b 932 476
b factors affecting the tax charge for the year
the tax on the group’s profit before taxation differs from the uk statutory rate as follows
2014
£’000 
2013
£’000
profit before taxation 2826 1775
tax calculated at domestic tax rates applicable to profits in the respective entities 
at 23 2013 24 650 426
tax effect of
expenses not deductible for tax purposes 334 315
different tax rates on overseas earnings 18 128
prior year adjustments other than changes in provisions 349 404
current year charge for deferred tax not recognised 232 260
impact of deferred tax on changes in tax rates 47 7
total taxation – note 7a 932 476
the weighted average applicable tax rate is 330 2013 268
changes to the uk corporation tax rates were substantively enacted as part of the finance act 2013 on 2 july 2013 these include 
reductions to the main rate to reduce the rate to 21 from 1 april 2014 and to 20 from 1 april 2015 deferred taxes at the balance 
sheet date have been measured using these enacted tax rates and reflected in these financial statements
the income tax creditedcharged to equity during the year was as follows
2014
£’000 
2013
£’000
deferred taxation
fair value reserves in equity
– availableforsale financial assets note 13 – 484
tax on actuarial gainloss on retirement benefit scheme 271 153
271 637
sweett group plc annual report and accounts 2014 70 8 dividends
2014
£’000 
2013
£’000
interim dividend paid of 050p per share in respect of the year ended 31 march 2014  
2013 interim dividend paid of 030p per share in respect of the year ended 31 march 2013 342 203
final dividend paid of 070p per share in respect of the year ended 31 march 2013  
2013 final dividend paid of 030p per share in respect of the year ended 31 march 2012 474 203
816 406
dividend per share in respect of the financial year
interim dividend per share paid during the year 05p 03p
final dividend per share declared for the year 08p 07p
the board has declared a final dividend in respect of the year ended 31 march 2014 of 08p per share 2013 07p per share 
amounting to 13p for the year 2013 10p for the year these financial statements do not reflect the final dividend for 2014
9 earnings per share
2014
£’000 
2013
£’000
profit for the financial year attributable to owners of the parent 1894 1299
number number
weighted average number of shares in issue 67977092 67 060705
basic earnings per share pence 28 19
number number
weighted average number of shares in issue 67977092 67 060705
adjustment for 
dilutive effect of share options 1403215 45538
weighted average number of ordinary shares for diluted earnings per share 69380307 67106243
diluted earnings per share pence 27 19
2014
£’000 
2013
£’000
profit for the financial year attributable to owners of the parent 1894 1299
taxadjusted exceptional administrative costs and performance  
share plan charges 1502 1190
3396 2489
number number
weighted average number of ordinary shares 67977092 67 060705
before exceptional administrative expenses and performance share  
plan charges pence 50 37
financial statements
sweett group plc annual report and accounts 2014 71
governance strategic report notes to the financial statements
continued
9 earnings per share continued
basic
basic earnings per share is calculated by dividing the profit attributable to owners of the parent by the weighted average number of 
ordinary shares in issue during the year excluding ordinary shares purchased by the company and held as treasury shares note 24 
the weighted number of shares excludes shares held by employee trusts
diluted
diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume 
conversion of all dilutive potential ordinary shares the company’s dilutive potential ordinary shares are share options a calculation  
is performed to determine the number of shares that could have been acquired at fair value determined as the average annual 
market share price of the company’s shares based on the monetary value of the subscription rights attached to outstanding share 
options the number of shares calculated as above is compared with the number of shares that would have been issued assuming 
the exercise of the share options
before exceptional administrative expenses and performance share plan charges
taxadjusted earnings per share are calculated before exceptional administrative expenses and performance share plan charges and 
after amortisation of acquired intangibles using the weighted average number of shares
10 goodwill 
group
goodwill
£’000
cost
at 1 april 2012 16395
exchange differences 248
at 31 march 2013 16643
exchange differences 875
reclassification as other intangible assets note 11 424
other adjustments 179
at 31 march 2014 15523
accumulated impairment
at 1 april 2012 31 march 2013 and 31 march 2014 295
net book amount
at 31 march 2014 15228
at 31 march 2013 16348
at 31 march 2012 16100
company
goodwill
£’000
cost
at 1 april 2012 31 march 2013 and 31 march 2014 2940 
accumulated impairment
at 1 april 2012 31 march 2013 and 31 march 2014 237 
net book amount at 31 march 2012 at 31 march 2013 and at 31 march 2014 2703 
there were no acquisitions during the years to 31 march 2014 or 2013
the group’s goodwill arose predominantly on the acquisitions of cyril sweett limited nisbet llp burnsbridge holdings pty limited 
and widnell limited and the company’s goodwill arose on the acquisitions of cyril sweett limited
goodwill is allocated to the group’s cashgenerating units “cgus” which are generally the smallest operating level at which the directors 
believe that they can prepare appropriate cash flow forecasts the recoverable amount of all cgus was determined based on value in use 
calculations the calculations used were based on shortterm financial projections approved by management the shortterm projections 
indicated that the value in use of each cgu exceeded the goodwill carrying values no provision for impairment was considered necessary
sweett group plc annual report and accounts 2014 72 10 goodwill continued
the adjustment to goodwill represents an adjustment in respect of deferred consideration relating to the acquisition of padgham  
 partners pty limited on 4 march 2010 on 28 february 2014 the company issued 314387 ordinary shares of 10p each at a 
premium of 1615p per share in part satisfaction of the acquisition of padgham  partners pty limited and its subsidiary company 
padgham cost management private limited these shares were issued on behalf of the company’s wholly owned subsidiary sweett 
group australia pty limited which acquired padgham  partners pty limited in addition sweett group australia pty limited paid 
cash of £144000 against which there were accrued liabilities of £47000
the financial projections used in these calculations were based on the following key data and assumptions
1  budgeted revenue and profit after taxation for 2015 as agreed by the board is used for the basis of determining projected  
net profit margins and hence anticipated future cash flows the group budget is based on a combination of past performance  
the order book and an assessment of future market conditions
2  net profit margins were projected forward for each cgu having regard to their relative markets and risk profiles a growth factor  
of 25 was applied for each cgu these cash flows were projected forward for a total of five years plus a discounted terminal 
value at five years with 0 growth rate
3  maintaining gross profit margins and net profit margins at 2015 budgeted levels
4  applying the discount rate of 12 the group’s weighted average cost of capital wacc the wacc is calculated using the 
capital asset pricing model according to market data and the level of debt to equity in existence
5  sensitivity analysis on the discount rate and growth rates was performed to identify the level of headroom in the calculation for 
each cgu a range of changes to assumptions was tested including an increase of two percentagepoints being applied to the 
discount rate reducing growth rates by one percentagepoint and assuming zero growth previous operating performance was 
also considered in the context of determining the forecast profits used in the calculations 
the impairment tests showed a high degree of tolerance to increases in the discount rates being used if the discount rates had  
been increased by 2 or the growth rate reduced to zero there would still have been no impairment in any of the cgus in addition 
a decrease of at least 28 in profit before tax in any of the individual cgus would be necessary for any goodwill impairment to 
become a consideration
the carrying value of goodwill by segment is as follows
group 2014
at  
1 april 
2013 
£’000
exchange 
differences
£’000
other 
adjustments
£’000 
transfers 
between 
segments
£’000
reclass
ification  
as other 
intangibles
£’000
at 31 
march 
2014
£’000
europe 7315 – – – – 7315
middle east africa and india 617 60 – – – 557
asia pacific 8416 815 179 – 424 7356
total 16348 875 179 – 424 15228
group 2013
at  
1 april  
2012 
£’000
exchange 
differences
£’000
other 
adjustments
£’000 
transfers 
between 
segments
£’000
reclass
ification  
as other 
intangibles
£’000
at 31 
march 
2013
£’000
europe 7315 – – – – 7315
middle east africa and india 590 16 – 11 – 617
asia pacific 8195 232 – 11 – 8416
total 16100 248 – – – 16348
financial statements
sweett group plc annual report and accounts 2014 73
governance strategic report notes to the financial statements
continued
11 other intangible assets
group
order book and 
customer 
relationships
£’000
externally 
acquired
computer 
software
£’000
total
£’000
cost
at 1 april 2012 3525 2303 5828
exchange differences 74 18 92
additions – 160 160
disposals – 347 347
at 31 march 2013 3599 2134 5733
exchange differences 222 85 307
reclassification from goodwill 424 – 424
additions – 277 277
disposals – 37 37
at 31 march 2014 3801 2289 6090
accumulated amortisation and impairment
at 1 april 2012 1333 1056 2389
exchange differences 43 12 55
charge for the year 480 427 907
disposals – 347 347
at 31 march 2013 1856 1148 3004
exchange differences 173 65 238
charge for the year 457 402 859
disposals – 37 37
at 31 march 2014 2140 1448 3588
net book amount
at 31 march 2014 1661 841 2502
at 31 march 2013 1743 986 2729
at 31 march 2012 2192 1247 3439
  element of the original excess of consideration over net assets acquired in relation to an acquisition in 2009 attributable to order book and customer relationships 
reclassified as intangible assets the remaining carrying value of order book and customer relationships held in other intangible assets in relation to this acquisition 
will be fully amortised during the year to 31 march 2015
customer lists and order book values are established in relation to each acquisition having regard to the markets in which the  
target company operates and the potential longevity of relationships with regard to repeat business 
amortisation of £859000 2013 £907000 is included in ‘administrative expenses’ amortisation of order book and customer 
relationships of £457000 2013 £480000 is shown separately on the face of the income statement as amortisation of  
acquired intangibles
sweett group plc annual report and accounts 2014 74 12 property plant and equipment
group
fixtures and 
fittings
£’000
computer 
hardware
£’000
total
£’000
cost
at 1 april 2012 2874 1517 4391
exchange differences 107 54 161
additions 483 530 1013
disposals 121 205 326
at 31 march 2013 3343 1896 5239
exchange differences 253 101 354
additions 220 540 760
disposals 284 203 487
at 31 march 2014 3026 2132 5158
accumulated depreciation
at 1 april 2012 1693 1181 2874
exchange differences 75 38 113
charge for the year 518 281 799
disposals 121 205 326
at 31 march 2013 2165 1295 3460
exchange differences 206 85 291
charge for the year 504 354 858
disposals 284 203 487
at 31 march 2014 2179 1361 3540
net book amount
at 31 march 2014 847 771 1618
at 31 march 2013 1178 601 1779
at 31 march 2012 1181 336 1517
the depreciation expense of £858000 2013 £799000 is included in ‘administrative expenses’
the group leases various items of computer hardware under noncancellable finance lease agreements the lease terms are 
between one and five years and ownership of the assets lies with the group
the net book amount of computer hardware above includes assets held on finance lease with a net book amount of £nil 2013 £nil
financial statements
sweett group plc annual report and accounts 2014 75
governance strategic report notes to the financial statements
continued
13 financial assets and loans and other receivables
group
available for 
sale assets
£’000
loans and other 
receivables
£’000
total
£’000
cost or fair value
at 1 april 2012 2062 3329 5391
additions 40 497 537
disposals – 3259 3259
fair value adjustment 2015 – 2015
at 31 march 2013 87 567 654
additions – 484 484
disposals – 803 803
reclassified as due within one year – 131 131
exchange differences – 26 26
at 31 march 2014 87 91 178
financial assets available for sale relate to the capital cost of 15 of e4dg holdco limited a company incorporated in england and 
wales and 333 of the a shares of express lift investments limited a company incorporated in england and wales the group 
also owns 50 of sweett equitix limited a company incorporated in england and wales at a cost of £51 the directors do not 
believe that the group is able to exert significant influence over either express lift investments limited or sweett equitix limited
these companies are special purpose vehicles involved in the construction of health and educational facilities under pfippp 
schemes the balance of risks and rewards derived from the underlying assets is not borne by the group and therefore its interest  
is accounted for as a financial asset and is classified as availableforsale and loans and receivables respectively the group has  
now disposed of its interest in all these pfippp schemes except for the retained equity interests referred to above the benefits  
of which relate to future potential dividend income these assets are therefore held at cost and the directors believe that this 
approximates to their fair value
previously the group’s interest in such assets were held at fair value on the basis that once the construction of the facilities is 
complete and they are in the operational phase the fair value could be measured by computing the forecast project cash flows 
relevant to the group’s interest discounted at relevant market discount rates or by reference to an agreed market value
on 21 january 2014 sweett investments limited transferred its interest in the scottish hub north territory project to a new joint 
venture company sweett equitix limited jointly owned by sweett investments limited and equitix hubco 3 limited under the  
terms of the transfer agreement equitix hubco 3 limited will provide substitute financing for the two existing hub north schemes  
and fund future schemes to the extent previously underwritten by the group the cash amount paid to the group in consideration  
for the transfer was approximately £900000
in february 2013 the group disposed of its investment in 15 of the unsecured loan notes 2039 in the dumfries  galloway pfi 
project the transaction was achieved via the sale of cyril sweett investments limited whose only asset at completion was the loan 
notes the consideration was £2250000 resulting in a profit of £500000 the underlying project was dumfries  galloway schools 
the group retains its interest in 15 of the issued share capital of e4dg holdco limited via its wholly owned subsidiary sweett 
investments dg limited
in september 2012 cyril sweett investments limited disposed of its holding of 19 of the issued share capital and subordinated 
debt of lift investments limited for £700000 resulting in a profit of £04m the underlying project was plymouth lift
in july 2012 cyril sweett investments limited disposed of its holding of 19 of the issued share capital and subordinated debt of  
e4i holdings limited for £2192860 resulting in a profit of £800000 the underlying project was inverclyde schools
loans and other receivables represent subordinated loan notes together with accrued interest receivable of £nil 2013 £323000  
and rental deposits repayable after more than one year of £91000 2013 £244000
sweett group plc annual report and accounts 2014 76 13 a investments
company
shares in 
subsidiary 
undertakings
£’000
capital
contribution
£’000
total
£’000
cost or fair value
at 1 april 2012 41263 380 41643
additions 1125 – 1125
disposals 1454 – 1454
capital contribution relating to share based payments – 40 40
at 31 march 2013 40934 420 41354
capital contribution relating to share based payments – 36 36
at 31 march 2014 40934 456 41390
provisions for impairment
at 1 april 2012 765 – 765
charge for the year – – –
at 31 march 2013 765 – 765
charge for the year – – –
at 31 march 2014 765 – 765
net book amount
at 31 march 2014 40169 456 40625
at 31 march 2013 40169 420 40589
the capital contribution relating to share based payments relates to 43m share options granted by the company to employees  
of subsidiary undertakings in the group note 25 contains further details of the group’s share option schemes
on 26 february 2013 the company sold its investment in cyril sweett investments limited to infrastructure intermediaries no 1 
limited this disposal concluded the sale of its investment in 15 of the unsecured loan notes 2039 in the dumfries  galloway  
pfi project the consideration £225m in cash was paid in full on completion and this sale was part of sweett group’s wider 
programme to reduce its investments in pfi and ppp projects the trade and other remaining assets of cyril sweett investments 
limited were retained within the group
financial statements
sweett group plc annual report and accounts 2014 77
governance strategic report notes to the financial statements
continued
14 principal subsidiary undertakings
group’s 
interest
class of 
shares held
country of 
registration
principal 
activities
sweett uk limited 100 ordinary england construction consultancy
sweett international holdings limited 100 ordinary england intermediate holding company
sweett china limited  100 ordinary hong kong construction consultancy
sweett group australia pty limited  100 ordinary australia intermediate holding company
burnsbridge sweett holdings pty limited  100 ordinary australia intermediate holding company
sweett australia pty ltd  100 ordinary australia construction consultancy
sweett singapore pte limited  100 ordinary singapore construction consultancy
cyril sweett international limited  100 ordinary cyprus intermediate holding company
cyril sweett cyprus limited  100 ordinary cyprus intermediate holding company
cyril sweett saudi arabia limited  100 ordinary saudi arabia construction consultancy
sweett group middle east engineering 
consultants llc  65 ordinary
sultanate of 
oman construction consultancy
sweett india private limited  formerly padgham 
sweett india private limited 100 ordinary india construction consultancy
sweett investments dg limited 100 ordinary england intermediate holding company
sweett investments limited 100 ordinary england intermediate holding company
sweett investment services limited  100 ordinary england construction consultancy
cyril sweett limited  100 ordinary ireland construction consultancy
sweett iberia slu  100 ordinary spain construction consultancy
cyril sweett thailand limited  49 ordinary thailand construction consultancy
cyril sweett trustee company limited 100 ordinary england corporate trustee
the above subsidiary undertakings are direct holdings of the company unless denoted by 
 cyril sweett trustee company limited is the corporate trustee of the cyril sweett share incentive plan
the above subsidiary undertakings are all included in these consolidated accounts
a full list of subsidiaries is available on request
the company also owns 50 of the issued share capital of vva sweett inc a company registered in the usa vva sweett inc  
has been trading for 15 months and its results and financial position are not currently material to the group
15 deferred taxation
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
deferred tax
at 1 april 1464 731 654 578
foreign exchange 63 – 48 –
credited to the income statement 118 97 125 –
credited directly to reserves – fair value of available for sale financial assets – – 484 –
chargedcredited directly to reserves – actuarial gainloss on pension scheme 271 271 153 153
at 31 march 1248 557 1464 731
disclosed as
deferred tax asset 1355 557 1616 731
deferred tax liability 107 – 152 –
sweett group plc annual report and accounts 2014 78 15 deferred taxation continued
deferred tax assets – group
accelerated 
depreciation
£’000
retirement 
benefit 
obligation 
£’000
tax losses
£’000
other timing 
differences
£’000 
total
£’000
at 1 april 2012 226 578 225 293 1322
exchange differences – – 12 47 59
creditedcharged to the income statement 77 – 70 65 82
credited directly to equity – 177 – – 177
impact of changes in tax rate 13 24 – 13 24
at 31 march 2013 290 731 307 288 1616
exchange differences – – 41 49 90 
chargedcredited to the income statement 58 – 61 97 100
chargedcredited directly to equity – 202 – – 202
impact of changes in tax rate ● – 69 – – 69
at 31 march 2014 232 460 327 336 1355
deferred income tax assets are recognised for tax loss carryforward to the extent that the realisation of the related tax benefit 
through future taxable profits is probable the group has not recognised deferred income tax assets of £05m 2013 £07m in 
respect of losses amounting £24m 2013 £28m that can be carried forward against future taxable income
deferred tax liabilities – group
fair value 
gains
other
 timing 
differences
£’000
total
£’000
at 1 april 2012 484 184 668
exchange differences – 11 11
credited to the income statement – 43 43
credited directly to equity 463 – 463
impact of changes in tax rate 21 – 21
at 31 march 2013 – 152 152
exchange differences – 27 27 
credited to the income statement – 18 18 
at 31 march 2014 – 107 107
the deferred tax asset of the company for the current and the prior year relates solely to the retirement benefit obligation
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
deferred tax asset estimated to be recoverable within one year 280 – 300 –
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
deferred tax liability estimated to be payable within one year 31 – – –
financial statements
sweett group plc annual report and accounts 2014 79
governance strategic report notes to the financial statements
continued
16 trade and other receivables
current receivables
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
amounts due from customers on longterm contracts – note 16 a 8602 – 7095 –
trade receivables 23039 – 24263 –
less provision for impairment 1516 – 1595 –
21523 – 22668 –
amounts due from group undertakings – 606 – 3999
other receivables 1967 4 3109 86
prepayments and accrued income 2031 102 1782 112
34123 712 34654 4197
the directors consider that the carrying amount of trade and other receivables approximates their fair value trade and other 
receivables are included as part of financial assets
within the trade receivables balance at 31 march 2014 is a retention balance of £10m 2013 £10m on a middle east contract
amounts due from group undertakings are unsecured interest free and repayable on demand
as at 31 march 2014 trade receivables of £1620000 2013 £1722000 were impaired by either a bad debt or credit note provision 
the amount of the debt provision was £1516000 2013 £1595000 the individually impaired receivables relate to clients’ inability  
to raise funding in the current climate the impact of the recession on clients’ ability to pay and ongoing minor disputes with clients 
the level of credit risk is in the view of the board generally low due to a wide mix of clients in each of the geographical areas in 
which the group operates with the exception of the middle east africa and india where there is a smaller number of clients than 
elsewhere the ageing of these receivables is as follows
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
less than 90 days – – 92 –
over 90 days 1620 – 1630 –
1620 – 1722 –
as of 31 march 2014 trade receivables of £7843000 2013 £8536000 were past due but not impaired these relate to a number 
of independent customers for whom there is no recent history of default the ageing analysis of these trade receivables is as follows
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
less than 90 days 4823 – 5420 –
over 90 days 3020 – 3116 –
7843 – 8536 –
sweett group plc annual report and accounts 2014 80 the carrying amounts of trade receivables are denominated in the following currencies
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
pounds sterling 8856 – 8260 –
euros 503 – 771 –
dirhams 2185 – 3292 –
indian rupees 618 – 632 –
sri lankan rupees 137 – – –
australian dollars 1063 – 1249 –
singapore dollars 313 – 352 –
us dollars 191 – – –
saudi riyals 1264 – 1561 –
hong kong dollars 2714 – 2964 –
chinese renminbi 3365 – 3336 –
thai baht 314 – 251 –
21523 – 22668 –
movements on the provision for impairment of trade receivables are as follows
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
at 1 april 1595 – 1230 –
exchange differences 91 – 68 –
provision for receivables impairment 443 – 443 –
amounts utilised 431 – 146 –
at 31 march 1516 – 1595 –
the other classes of trade and other receivables do not contain impaired assets
the maximum exposure to credit risk at the reporting date is the book value of the receivable balances mentioned above  
the group does not hold any collateral as security
16 a longterm contracts
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
total costs incurred plus profits recognised as income  
less recognised losses 145012 – 143618 –
invoicing on account to customers 137257 – 137285 –
7755 – 6333 –
of which work in progress for third parties is disclosed as
amounts due from customers on longterm contracts note 16 8602 – 7095 –
amounts due to customers on longterm contracts note 19 847 – 762 –
7755 – 6333 –
financial statements
sweett group plc annual report and accounts 2014 81
governance strategic report notes to the financial statements
continued
17 cash and cash equivalents 
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
cash at bank and in hand 6568 15 3915 25
the group balance above includes £15m 2013 £07m in the form of security deposits in china and £04m 2013 £04m in the form 
of customer deposits in australia which are held on trust
cash and cash equivalents include the following for the purpose of the statement of cash flows
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
cash at bank and in hand 6568 15 3915 25
bank overdrafts 3677 – 3498 –
cash cash equivalents and bank overdrafts at the end of the year 2891 15 417 25
as a result of the group’s cash cycles and low market interest rates the effective interest rate on cash balances was minimal  
2013 minimal
18 borrowings
current
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
bank overdraft 3677 – 3498 –
bank loans 3540 1500 5207 5207
obligations under finance leases 5 – 5 –
7222 1500 8710 5207
noncurrent
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
bank loans 5625 5625 2250 2250
obligations under finance leases 8 – 15 –
5633 5625 2265 2250
bank loans and overdrafts
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
analysis of maturity of debt
within one year or on demand 7217 1500 8705 5207
between one and two years 1500 1500 2250 2250
between two and five years 4125 4125 – –
12842 7125 10955 7457
the fair value of financial liabilities was the same as the carrying value
the group’s principal banker is bank of scotland plc which has provided certain facilities secured by a fixed and floating first and 
only debenture over the assets of sweett group plc including specific charges over the shares in certain subsidiary undertakings 
and crossguarantees of sweett group plc and certain subsidiaries
sweett group plc annual report and accounts 2014 82 the current arrangements are as follows
1  a term loan of £7 5m with interest at 275 over libor and repayable by equal quarterly instalments over five years to november 2018
2  a £5m overdraft facility renewable annually with interest at 3 over bank of scotland plc base rate the next review date is december 201 4 and
3  a letter of credit facility for £2m
during the year facilities were negotiated with hsbc in china and hong kong these comprise an accounts receivables facility in 
hong kong of £14m and a loan facility in hong kong secured against renminbi deposits in china of £08m additionally £08m in 
overdraft facilities is available to overseas subsidiaries from local sources
the present value of finance lease liabilities is as follows
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
within one year or on demand 7 – 7 –
between two and five years 7 – 16 –
14 – 23 –
future finance charges on finance leases 1 – 3 –
present value of finance lease liabilities 13 – 20 –
the total minimum lease payments are as follows
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
analysis of maturity of debt
within one year or on demand 5 – 5 –
between one and two years 5 – 5 –
between two and five years 3 – 10 –
13 – 20 –
18 a derivative financial instrument
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
– – 1359 1359
note 4 to the financial statements discloses a credit of £10m 2013 cost of £03m relating to the change in fair value of a derivative 
financial instrument under ias 39 this relates to a forward foreign exchange contract to hedge advances in australian dollars to a 
subsidiary company which was settled on 27 september 2013
19 trade and other payables
current
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
amounts due to customers on longterm contracts – note 16 a 847 – 762 –
trade payables 2547 – 2432 –
amounts due to group undertakings – 8464 – 7443
taxes and social security costs 3015 33 2684 38
other payables – note 20 6455 847 5818 278
accruals and deferred income 4502 415 5004 352
17366 9759 16700 8111
amounts due to group undertakings are unsecured interest free and repayable on demand
financial statements
sweett group plc annual report and accounts 2014 83
governance strategic report notes to the financial statements
continued
20 other payables
other payables
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
deferred contingent consideration on business combinations – – 641 –
profit sharing 1026 175 700 202
performance share plan 609 609 – –
restructuring costs 428 – 291 –
customer deposits 358 – 434 –
other payables 4034 63 3752 76
6455 847 5818 278
included in other payables is £01m 2013 £02m due after more than one year in respect of long service payments
the carrying amount of trade and other payables approximates to their fair value
21 retirement benefit obligations
defined benefit pension schemes
group and company 
the company’s funded defined benefit pension scheme was closed to new members from 1 january 1999 and with effect from  
30 june 2003 the company stopped making contributions to this scheme for current members in respect of their future service 
contributions that previously would have been paid into this scheme are now being paid into the sweett group personal pension 
scheme which is a defined contribution pension scheme
full actuarial valuations are prepared every three years and the valuation at 30 june 2011 was completed using the following annual 
growth rate assumptions
investment return 48 – 63
salary increases na
pension increases 345
at the date of the latest completed actuarial valuation completed as at 30 june 2011 the market value of the assets was £10992000 
which represented 87 of the benefits accrued to members on an ongoing basis the resulting deficit being £1693000
during the year the company contributed £276000 2013 £326000 to the defined benefit pension scheme
an updated actuarial valuation was carried out at 31 march 2014 by an independent actuary for the purposes of inclusion of 
information about the pension scheme in these accounts the main assumptions used by the actuary were
as at
31032014
as at
31032013
discount rate 430 400
inflation assumption rpi 350 350
inflation assumption cpi 250 250
rate of increase in salaries na na
rate of increase in lpi pensions in payment 350 350
statutory revaluation of deferred benefits 250 250
sweett group plc annual report and accounts 2014 84 21 retirement benefit obligations continued
assumed life expectancies on retirement at age 65 are
as at
31032014
as at
31032013
retiring today – males 240 240
retiring today – females 251 250
retiring in 20 years’ time – males 254 253
retiring in 20 years’ time – females 266 266
the assumptions used by management are best estimates chosen from a range of possible actuarial assumptions which  
due to the timescale covered may not necessarily be borne out in practice
the expected future lifetime of a male pensioner aged 65 is 24 years for a future pensioner retiring in 20 years this increases  
to 254 years
the fair value of the scheme’s assets which are not intended to be realised in the short term and may be subject to significant change 
before they are realised and the present value of the scheme’s liabilities which are derived from cash flow projections over long 
periods and are inherently uncertain were
value at
31032014
£’000
value at
31032013 
£’000
value at
31032012 
£’000
equities with property 5244 5158 4528
bonds 6385 6187 5641
indexlinked gilts 1254 1366 1266
other 22 45 5
fair value of scheme assets 12861 12666 11440
the actual return on assets over the period was 573 1493 –
present value of funded obligations 15162 15846 13848
fair value of scheme assets 12861 12666 11440
deficit in funded scheme 2301 3180 2408
present value of unfunded obligations – – –
unrecognised actuarial gains losses – – –
adjustment in respect of asset ceiling and minimum funding requirement – – –
net liability in balance sheet 2301 3180 2408
reconciliation of opening and closing balances  
of the present value of the defined benefit obligation
31032014
£’000
31032013
£’000
benefit obligation at beginning of year 15846 13848
service cost – –
interest cost 623 640
contributions by scheme participants – –
net remeasurement gainslosses – financial 767 2044
net remeasurement gains – demographic – 197
net remeasurement gains – experience – 1
benefits paid 540 488
past service cost – –
settlements – –
business combinations – –
benefit obligation at end of year 15162 15846
financial statements
sweett group plc annual report and accounts 2014 85
governance strategic report notes to the financial statements
continued
21 retirement benefit obligations continued
reconciliation of opening and closing balances
of the fair value of scheme assets
31032014
£’000
31032013
£’000
fair value of scheme assets at beginning of year 12666 11440
interest income on scheme assets 501 534
return on assets excluding interest income 72 959
contributions by employers 276 326
contributions by scheme participants – –
benefits paid 540 488
scheme administrative cost 114 105
business combinations – –
settlements – –
exchange rate – –
fair value of scheme assets at end of year 12861 12666
reconciliation of the effect of the asset ceiling
31032014
£’000
31032013
£’000
effect of the asset ceiling at the beginning of the year – –
interest income on the asset ceiling – –
changes in the effect of the asset ceiling excluding interest income – –
effect of the asset ceiling at the end of the year – –
the amounts recognised in profit or loss
31032014
£’000
31032013
£’000
service cost – including current service costs past service costs and settlements – –
service cost – administrative cost 114 105
net interest cost on the net defined benefit liability 122 106
total expense 236 211
remeasurements of the net defined benefit liability to be shown in oci
31032014
£’000
31032013
£’000
net remeasurement – financial 767 2044
net remeasurement – demographic – 197
net remeasurement – experience – 1
return on assets excluding interest income 72 959
changes in the effect of the asset ceiling excluding interest income – –
total remeasurement of the net defined benefit liability to be shown in oci 839 887
ias 19 employee benefits amended 2011 has been implemented for the year ended 31 march 2014 the impact of the implementation 
on the previous year’s amounts is not considered material and the comparative amounts have not been amended in these financial 
statements the comparative disclosures above reflect the impact of the amended ias 19 had the implementation been applied to 
the prior period 
the contributions to be paid during the financial year to 31 march 2015 are expected to amount to £276000
sweett group plc annual report and accounts 2014 86 21 retirement benefit obligations continued
money purchase pension schemes
the contribution to the sweett group plc group personal pension scheme for the year 1 april 2013 to 31 march 2014 was £785000 
2013 £774000
the company and its uk subsidiaries also contribute to employees’ personal pension schemes and the charge for the year was 
£28890 and £43986 respectively 2013 £30125 and £52500 respectively
contributions made by subsidiary undertakings outside of the uk to money purchase pension schemes for their employees 
amounted to £1842000 2013 £1706000
22 share capital
group and company
2014
£’000
2013
£’000
authorised
75000000 ordinary shares of 10p each 7500 7500
called up and fully paid
ordinary shares of 10p each 6865 6769
number of shares
2014
number
’000
2013
number
’000
ordinary shares of 10p each 68659 67694
movement in share capital
2014
£’000
2013
£’000
at 1 april 6769 6631
shares issued note 23 96 138
at 31 march 6865 6769
movement in share capital
2014
number
’000
2013
number
’000
at 1 april 67694 66311
shares issued note 23 965 1383
at 31 march 68659 67694
financial statements
sweett group plc annual report and accounts 2014 87
governance strategic report notes to the financial statements
continued
23 share premium account
group and company
2014
£’000
2013
£’000
at 1 april 13658 13475
shares issued 175 183
at 31 march 13833 13658
on 28 february 2014 the company issued 314387 ordinary shares of 10p each at a premium of 1615p per share in part satisfaction 
of the acquisition of padgham  partners pty limited and its subsidiary company padgham cost management private limited 
these shares were issued on behalf of the company’s wholly owned subsidiary sweett group australia pty limited which acquired 
padgham  partners pty limited
on 2 december 2013 the company issued 14925 ordinary shares of 10p each at a premium of 235p per share 20000 ordinary 
shares of 10p each at a premium of 327p per share and 96969 ordinary shares of 10p each at a premium of 230p per share in 
satisfaction of the exercise of share options
on 21 november 2013 the company issued 29851 ordinary shares of 10p each at a premium of 235p per share 30000 ordinary 
shares of 10p each at a premium of 327p per share and 74243 ordinary shares of 10p each at a premium of 230p per share in 
satisfaction of the exercise of share options
on 1 november 2013 the company issued 3212 ordinary shares of 10p each at a premium of 230p per share in satisfaction of the 
exercise of share options
on 3 october 2013 the company issued 118182 ordinary shares of 10p each at a premium of 230p per share and 26415 ordinary 
shares of 10p each at a premium of 165p per share in satisfaction of the exercise of share options
on 11 september 2013 the company issued 20000 ordinary shares of 10p each at a premium of 150p per share in satisfaction  
of the exercise of share options
on 17 september 2013 the company issued 216346 ordinary shares of 10p each at a premium of 108p per share in satisfaction  
of the exercise of share options
on 5 september 2012 the company issued 1382856 ordinary shares of 10p each at a premium of 132p per share in part satisfaction 
of the acquisition of widnell limited now sweett china limited these shares were each issued on behalf of the company’s wholly 
owned subsidiary sweett international holdings limited which acquired widnell limited
24 treasury shares
group and company
2014
£’000
2013
£’000
at 1 april 10 60
acquisitions 17 –
disposals 10 50
at 31 march 17 10
as at 31 march 2014 the treasury shares represent 35895 ordinary shares of 10p each 2013 38532 ordinary shares of 10p each 
of the company held by the company’s share incentive plan set out below with a value of £17000 2013 £10000 these shares 
represented 01 2013 01 of the company’s issued share capital
own shares
the company neither acquired nor disposed of its own shares during the year or the previous year
sweett group employee benefit trust
the employee benefit trust was established as a scheme for encouraging or facilitating the holding of shares in the company by  
or for the benefit of bona fide employees of the company assets and liabilities recorded by the employee benefit trust are treated  
as assets and liabilities of the company but are under the day to day control of trustees 
the trustees have the power to grant options over any shares held by the trust or to sell or transfer any such shares to any 
beneficiaries from time to time provided always that the trustees consider that the grant of options or sale of shares will be 
advantageous to the beneficiaries costs of the employees benefit trust have been recorded as a part of operating expenses  
of the company at 31 march 2014 the employee benefit trust held no shares 2013 no shares
sweett group plc annual report and accounts 2014 88 sweett share incentive plan
the share incentive plan was established to enable qualifying employees to acquire shares in the company out of untaxed income 
and provides a tax efficient means of granting shares to employees dividends received by the plan in cash are used to purchase 
additional shares on behalf of individuals free shares are awarded to qualifying employees based on remuneration
at 31 march 2014 the plan held 35895 shares with a value of £17000 which had not been allocated to individual employees  
2013 38532 shares with a value of £10000
25 equity settled share based payments
the company has granted certain unapproved share options together with share options under its approved company share  
option plan csop and its enterprise management incentive emi scheme although the company no longer qualifies to grant 
further options under the emi options granted have a contractual life of 10 years and are exercisable on the third anniversary from 
the date of grant the group has no legal or constructive obligation to repurchase or settle the options in cash and options lapse  
if an option holder is not a fulltime employee of the group during the year the company also granted nil cost options under the 
performance share plan psp details of which are provided in the directors’ remuneration report the other options have no 
additional vesting requirements the unexercised options at the end of the year are stated below
date of grant of option
option 
exercise price 
per share
2014
shares
’000
2013
shares
’000
unapproved options
31 october 2007 1100p 475 475
14 january 2008 1100p 30 30
1 october 2008 675p 111 160
3 april 2009 250p 400 400
20 april 2009 330p 402 447
9 july 2010 265p 18 56
15 december 2010 320p 30 30
19 july 2011 390p 109 109
26 september 2012 180p 639 722
26 march 2014 210p 238 –
26 march 2014 475p 258 –
2710 2429
csop
31 march 2008 945p 30 30
3 april 2008 955p 157 157
31 july 2008 955p 16 16
3 april 2009 250p 80 100
20 april 2009 330p 1285 1605
9 july 2010 265p 13 39
15 december 2010 320p 10 10
19 july 2011 390p 583 609
21 november 2011 210p 16 16
26 september 2012 180p 153 153
7 december 2012 180p 278 278
26 march 2014 475p 142 –
2763 3013
financial statements
sweett group plc annual report and accounts 2014 89
governance strategic report notes to the financial statements
continued
25 equity settled share based payments continued
option 
exercise price 
per share
2014
shares
’000
2013
shares
’000
emi
6 october 2003 208p – 216
28 november 2005 335p 455 523
16 october 2006 427p 775 845
1230 1584
the estimated fair values of these share options range between 5p per share and 20p per share this was calculated by applying the 
blackscholes option pricing model the model inputs were the share price at grant date the appropriate exercise price expected 
volatility of 40 2013 40 expected dividend yield of 19 2013 28 contractual life of ten years and a riskfree interest rate  
of 275 2013 50 it was assumed that employees would exercise their options during the first year after the option vesting date 
the volatility of 40 represents the average of the volatility of a range of listed companies which operate in the same or similar sector 
as this company the share price at the date of grant for the csop and unapproved grants during the year was 475p per share
the value of employee services provided of £42000 2013 £40000 has been charged to the income statement
performance share plan psp
option 
exercise price 
per share
2014
shares
’000
2013
shares
’000
9 december 2011 nil 1652 1652
26 september 2012 nil 1921 1921
30 september 2013 nil 843 –
further details of the three share option plans are as follows
2014
number of
options
’000
2014
weighted 
average
exercise
 price
2013
number of
options
’000
2013
weighted 
average
exercise
 price
outstanding at the start of the year 10599 261p 8772 361p
granted 1481 162p 3074 68p
forfeited 311 347p 1247 487p
exercised 650 292p – –
outstanding at the end of the year 11119 244p 10599 261p
exercisable at the end of the year 4287 468p 5004 447p
during the year options were exercised in respect of 650143 shares 2013 none which were satisfied by the issue of new shares and 
for which the related weighted average share price at the time of exercise was 592p per share
sweett group plc annual report and accounts 2014 90 share options outstanding at the end of the year have the following expiry dates and exercise prices
expiry date of option
exercise 
price
per share
shares
2014
shares
2013
6 october 2013 208p – 216346
28 november 2015 335p 455220 522384
16 october 2016 427p 775000 845000
31 october 2017 1100p 475000 475000
14 january 2018 1100p 30000 30000
31 march 2018 945p 30000 30000
3 april 2018 955p 157068 157068
31 july 2018 955p 15706 15706
1 october 2018 675p 111111 160000
3 april 2019 250p 480000 500000
20 april 2019 330p 1686786 2052120
9 july 2020 265p 31445 95596
15 december 2020 320p 39930 39930
19 july 2021 390p 692301 717941
21 november 2021 210p 15871 15871
9 december 2021 nil 1652228 1652228
26 september 2022 nil 1921234 1921234
26 september 2022 180p 791657 874989
7 december 2022 180p 277776 277776
30 september 2023 nil 842824 –
26 march 2024 210p 238094 –
26 march 2024 475p 400002 –
11119253 10599189
share option reserve
group and company
2014
£’000
group
2014
£’000
company
2013
£’000
group
2013
£’000
company
at 1 april 640 640 600 600
value of employee services provided 42 42 40 40
transfer to retained earnings on exercise 35 12 – –
at 31 march 647 670 640 640
financial statements
sweett group plc annual report and accounts 2014 91
governance strategic report notes to the financial statements
continued
26 acquisitions
there were no acquisitions during the financial years to 31 march 2014 or 31 march 2013
27 cash flows from operations
2014
group
£’000
2014
company
£’000
2013
group
£’000
2013
company
£’000
profitloss before taxation 2826 2866 1775 2575
adjustment for
finance income 1007 970 170 –
finance cost 491 257 735 550
depreciation of property plant and equipment 858 – 799 –
amortisation of intangible assets 859 – 907 –
profit on investment activities – – 1389 –
profit on disposal of subsidiary – – – 536
defined benefit pension scheme costs 236 236 57 57
share based payments 42 6 40 –
operating cash flows before movements in working capital 4305 3337 2754 2646
increasedecrease in receivables 678 3486 4674 1954
increasedecrease in payables 2307 1730 4413 2166
payment to fund the defined benefit pension scheme deficit 276 276 326 326
cash inflowoutflow from operations 5658 1603 2167 1800
27 a reconciliation of movement in net debt
2014
group
£’000
2014
company
£’000
2013
group
£’000
2013
company
£’000
net increasedecrease in cash cash equivalents and bank overdraft 2787 10 1474 9
new bank loans raised 8083 6043 1750 1750
repayment of bank loans 6375 6375 1333 1333
redemption of finance leases 7 – 5 –
exchange lossesgains on cash cash equivalents and bank overdrafts 313 – 115 –
change in net debt 773 322 1177 426
net debt at the beginning of the year 7060 7432 8237 7006
net debt at the end of the year 6287 7110 7060 7432
sweett group plc annual report and accounts 2014 92 28 financial risk management
the main risks arising from the group’s financial instruments are foreign currency risk credit risk interest risk and liquidity risk  
the group seeks to manage these risks in a manner which ensures straightforward administration and operational flexibility  
whilst minimising risk the financial instruments used by the group comprise internal cash resources borrowings receivables  
and payables arising from normal trading activities available for sale assets and loans and receivables banking facilities are 
negotiated to provide working capital and acquisition finance to meet current and future requirements and to hedge foreign  
currency exposures where appropriate 
liquidity risk
the group’s objective is to ensure sufficient cash reserves are available to fund ongoing activities and future development plans  
this risk is managed by the policy of regular invoicing on longterm contracts and ensuring that banking facilities are negotiated  
to provide working capital and acquisition finance to meet current and future requirements
the maturity of financial liabilities is as follows
group
financial
liabilities
£’000
trade and
other
payables
£’000
total
£’000
within one year 7222 17268 24490
between one and two years 1505 98 1603
between two and five years 4128 – 4128
at 31 march 2014 12855 17366 30221
group
financial
liabilities
£’000
trade and
other
payables
£’000
total
£’000
within one year 8710 16550 25410
between one and two years 2255 150 2255
between two and five years 10 – 10
at 31 march 2013 10975 16700 27675
company
financial
liabilities
£’000
trade and
other
payables
£’000
total
£’000
within one year 1500 9760 11260
between one and two years 1500 – 1500
between two and five years 4125 – 4125
at 31 march 2014 7125 9760 16885
company
financial
liabilities
£’000
trade and
other
payables
£’000
total
£’000
within one year 5207 8111 13318
between one and two years 2250 – 2250
between two and five years – – –
at 31 march 2013 7457 8111 15568
financial statements
sweett group plc annual report and accounts 2014 93
governance strategic report notes to the financial statements
continued
28 financial risk management continued
the bank facilities at 31 march 2014 were subject to the following covenants
• net worth not to be less than £25m including goodwill and other intangibles
• interest cover ebitda to total interest not to be less than 41
• gearing net debt to ebitda not to be more than 2751 and
• net operating cash flow to bank debt service not to be less than 111
the group had £2732000 2013 £1337000 of cash and cash equivalents at the year end immediately available for use
foreign currency risk
most of the group’s trading activity is denominated in the currency relevant to the trading entity thereby matching the currency with 
its cost base where contracts are denominated in nonlocal currency the policy is to mitigate the risk having regard to all the relevant 
circumstances normally by seeking to hedge the resultant currency exposure by way of a contract with the bank exposures arising 
on intragroup balances are similarly hedged the use of derivative financial instruments and hedge accounting as a means of 
managing foreign currency risk is explained more fully in note 2 significant accounting policies note 4 to the financial statements 
discloses income of £10m 2013 cost of £03m relating to the change in fair value of a derivative financial instrument under ias 39 
which has now been satisfied in full
trading in foreign currencies is predominantly in hong kong dollars chinese renminbi australian dollars singapore dollars  
indian rupees uae dirhams saudi riyals and euro if sterling had strengthenedweakened by 10 against these currencies in  
the year to 31 march 2014 versus actual rates the group’s posttax result would have changed by £01m 2013 £01m
interest rate risk
the group has an exposure to interest rate increases on its longterm debt while interest rates remain at their current low levels  
this risk has not been hedged but exposures are under constant review
the group’s borrowings at 31 march 2014 were in sterling hong kong dollars and australian dollars 2013 sterling and australian 
dollars the effect of an increasedecrease in interest rates assuming no change in lenders’ margins in the years to 31 march 2014 
and 2013 of 20 would have been less than £100000 
capital risk
the group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide  
returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the costs of 
capital in order to maintain or adjust the capital structure the group may adjust the amount of dividends paid to shareholders  
return capital to shareholders issue new shares or sell assets to reduce debt details of the financial covenants with which the  
group must comply are stated in the financial review the group was in compliance with all covenants during the year and at  
31 march 2014
the group monitors capital predominantly on the basis of the gearing ratio which is calculated as net debt divided by earnings 
before exceptional items interest taxation depreciation and amortisation ‘adjusted ebitda’ net debt is defined as total current  
and noncurrent borrowings less cash and cash equivalents to the extent immediately available at 31 march 2014 net debt was 
£63m 2013 £71m and adjusted ebitda was £62m 2013 £55m accordingly the gearing ratio was 11 1 2013 13 1
credit risk
the group has no significant concentration of credit risk in terms of unusually large amounts due from individual clients with the 
exception of a retention balance amounting to £1m on a middle east contract in the current economic climate there is an inherent 
risk in exposure to the property market which the group seeks to mitigate by regular credit checks regular payment requirements  
in its standard terms and conditions and the implementation of appropriate credit control procedures
credit quality of financial assets
the group operates in various locations in the uk and overseas and has a large number of bluechip clients for whom it has provided 
services for long periods the directors believe that the group’s client engagement process through its management procedures 
provides a sufficient means of identifying and controlling material credit risk it is not practical for the group to provide an assessment 
of the credit quality of financial assets by reference to external credit ratings in all cases although this approach is used where 
deemed appropriate
the level of credit risk is in the view of the board generally low due to a wide mix of clients in each of the geographical areas  
in which the group operates with the exception of the middle east africa and india where there is a smaller number of clients  
than elsewhere 
sweett group plc annual report and accounts 2014 94 28 financial risk management continued
financial instruments by category
group 2014
loans and 
receivables
£’000
available  
for sale
£’000
total
£’000
at 31 march 2014
assets as per balance sheet
available for sale financial assets – 87 87
trade and other receivables excluding prepayments 32183 – 32183
cash and cash equivalents 6568 – 6568
total 38751 87 38838
other 
financial 
liabilities at
amortised 
cost
£’000
liabilities at 
fair value 
through profit 
and loss 
account
£’000
total
£’000
at 31 march 2014
liabilities as per balance sheet
borrowings excluding finance lease liabilities 12842 – 12842
finance lease liabilities 13 – 13
trade and other payables excluding statutory liabilities 13923 – 13923
derivative financial instrument – – –
total 26778 – 26778
group 2013
loans and 
receivables
£’000
available  
for sale
£’000
total
£’000
at 31 march 2013
assets as per balance sheet
available for sale financial assets – 87 87
trade and other receivables excluding prepayments 33439 – 33439
cash and cash equivalents 3915 – 3915
total 37354 87 37441
company 2013
other financial 
liabilities at
amortised cost
£’000
liabilities at fair 
value through 
profit and loss 
account
£’000
total
£’000
at 31 march 2013
liabilities as per balance sheet
borrowings excluding finance lease liabilities 10955 – 10955
finance lease liabilities 20 – 20
trade and other payables excluding statutory liabilities 13084 – 13084
derivative financial instrument – 1359 1359
total 24059 1359 25418
financial statements
sweett group plc annual report and accounts 2014 95
governance strategic report notes to the financial statements
continued
28 financial risk management continued
company 2014
loans and 
receivables
£’000
at 31 march 2014
assets as per balance sheet
trade and other receivables excluding prepayments 610
cash and cash equivalents 15
total 625
other
 financial 
liabilities at
amortised 
cost
£’000
liabilities at 
fair value 
through profit 
and loss 
account
£’000
total
£’000
at 31 march 2014
liabilities as per balance sheet
borrowings excluding finance lease liabilities 7125 – 7125
trade and other payables excluding statutory liabilities 9727 – 9727
derivative financial instrument – – –
total 16852 – 16852
company 2013
loans and 
receivables
£’000
at 31 march 2013
assets as per balance sheet
investment in subsidiaries –
trade and other receivables excluding prepayments 4085
cash and cash equivalents 25
total 4110
other financial 
liabilities at
amortised cost
£’000
liabilities at fair 
value through 
profit and loss 
account
£’000
total
£’000
at 31 march 2013
liabilities as per balance sheet
borrowings excluding finance lease liabilities 7457 – 7457
trade and other payables excluding statutory liabilities 8073 – 8073
derivative financial instrument – 1359 1359
total 15530 1359 16889
fair values
the fair values of the group’s financial assets and liabilities approximate to their carrying values
sweett group plc annual report and accounts 2014 96 29 related party transactions 
group
during the year the company’s wholly owned subsidiary sweett uk limited entered into transactions totalling £9500 2013 £9500 
with the british council of shopping centres of which derek pitcher is a director the transactions related to the 2013 annual 
conference and exhibition as well as various seminars at the year end nothing was owed to this company 2013 £nil
the directors are of the opinion that the above transactions were on normal commercial terms
during the year the group divested its investment in 50 of acp north hub limited
the remaining related party investments are
15 of the issued share capital of e4dg holdco limited
50 of the issued share capital of sweett equitix limited and
333 of the issued a shares of express lift investments limited
the group earned £34000 in interest 2013 £132000 and £nil in dividends 2013 £30000 from related party investments
company
the company operates as a holding company for the group balances with other group companies which are shown at notes 16 
and 19 are unsecured interest free and repayable on demand the company received no dividends from subsidiary undertakings 
during the year 2013 £4773000
key management is the board of directors and its compensation for the company is shown at note 6 
30 operating lease commitments – minimum lease payments
future aggregate commitments under noncancellable operating leases
2014
£’000
2013
£’000
land and buildings
within one year 2668 2776
within two to five years 5142 5599
7810 8375
plant and machinery
within one year 162 170
within two to five years 298 448
460 618
the group leases land and buildings plant and machinery under noncancellable operating lease arrangements which have various 
terms and renewal rights
31 capital and other financial commitments
at 31 march 2014 the group had no significant capital expenditure commitments 2013 £nil
32 contingent liabilities
the group and the company have contingent liabilities in respect of bonds and guarantees issued to third parties in the normal 
course of business at 31 march 2014 the contingent liability amounted to £06m 2013 £05m
the company has guaranteed the overdraft facility of sweett uk limited amounting to £49m 2013 £49m
there exists a threatened high court action by a former employee for breach of contract the directors are of the view that there is little  
evidence to support the merit of this possible litigation in respect of which no provision has therefore been made in these financial statements
with respect to the investigation into allegations contained in the wall street journal in 2013 as explained in the chairman’s 
statement at present the directors believe that there is not sufficient evidence to form a view as to the likelihood of any potential 
fines or other financial consequences accordingly no provision has been included within these financial statements
33 post balance sheet events
there have been no significant post balance sheet events
financial statements
sweett group plc annual report and accounts 2014 97
governance strategic report full service offering
 advisory services
 – business case and strategy development
 – capital allowances property tax and grants
 – due diligence
 – energy carbon and resource management
 – estates strategy and space utilisation
 – facilitation services
 – facilities management consultancy
 – health and fire safety
 – health planning projects
 – information management services
 – operational commissioning
 – ppppf2p3 advice
 – real estate finance
 – research and policy advice
 – sustainability advice
 – training and knowledge transfer
 building surveying services
 – b u i ldi ng su r v e y s
 – design services
 – multi facet land and property appraisals
 – property law and legislation
 – specialist services
 contract solutions
 – claims management
 – dispute avoidance
 – dispute management
 – expert witness
 – forensic programme analysis
 – framework set up and management
 – strategic procurement and contractual advice
  programming and time  
related analysis
 – forensic programme analysis
 – portfolio management
 – programme expert services
 – project control
 – project planning
 – time related dispute claims
 project management
 – contract administration
 – development management
 – due diligence and fund monitoring
 – employer’s agent
 – owner’s representative
 – precontract management services
 – programme management
 – programming and planning
 – project studies
 – retail delivery
 property and development services
 – accommodation and property portfolio reviews
 – acquisitions and disposals
 – authority negotiations
 – community and stakeholder consultation
 – development monitoring
 – development strategy
 – parliamentary standing committee submissions
 – project financial administration
 – strategic business case development
 – tendering procurement and probity
 – transaction coordination
  quantity surveyingcost 
management
 – benchmarking
 – bills of quantitiestender documentation
 – cost planning and pre contract cost control
 – feasibility studies and master planning
 – insurance valuations
 – mep cost consulting
 – post contract cost management
 – procurement and contract advice
 – services engineering cost management
 – tendering and evaluation
 – value engineeringvalue management
 – whole life costinglife cycle management
  specialist services
 – asset management
 – bid management
 – breeam ska assessments
 – cdmcoordinator
 – construction cost audit
 – independent certifier
 – post project appraisals evaluations
 – project audit and recovery
 – project monitoring
 – risk management
 – spv management
 – technical advisor
 – value management
 urban and regional planning
 – community and stakeholder engagement
 – expert witness
 – land use planning studies
 – planning and development applications
 – planning scheme amendments
 – statutory planning
 – structure and precinct planning
 – urban and regional planning
our service areas
sweett group plc annual report and accounts 2014 98 company information
  company registration number
 03452251
  d i r e c to r s
  –  m j g henderson fca frsa kchs  
nonexecutive chairman
 –  d l webster mba bsc frics mapm  
chief executive officer
 –  p m m sinclair ba fca  
chief financial officer
 –  d r pitcher bsc frics dipprojman  
director of europe and meai operations
 –  k ber r y llb hons mrics mhkis mciarb rps qs fpfm 
director of asia pacific operations
 –   r s mabey cmg fciob frsa  
nonexecutive
 –  p n woollacott bsc cigem  
nonexecutive
 –  d c wilton ma fca  
nonexecutive
  company secretary
 –  p g watt bsc econ acis
  registered office
  60 gray’s inn road  
london 
wc1x 8aq
  nominated advisor and broker
  westhouse securities limited 
heron tower 
110 bishopsgate 
london 
ec2n 4ay
  independent auditors
  p r i c e w a t e r h o u s e c o op e r s llp 
chartered accountants and statutory auditors 
1 embankment place 
london 
wc2n 6rh
  b a n ke r s
  bank of scotland plc 
the mound 
edinburgh 
eh1 1yz
  r e g i st r ar s
  c a p i ta r e g i st ra r s 
northern house 
woodsome park 
fenay bridge 
huddersfield 
hd8 0la
  head office
  60 gray’s inn road 
london 
wc1x 8aq 
telephone number 020 7061 9000 
fax number 020 7430 0603 
wwwsweettgroupcom 
sweett group plc annual report and accounts 2014 99 notes
sweett group plc annual report and accounts 2014 100 designed and produced by sampsonmay 
telephone 020 7403 4099  
wwwsampsonmaycom
printed by cpi colour on explorer offset  
– an fsc
®
 mix certified grade and is produced  
at a mill that is certified to the iso14001 and 
emas environmental management standards sweett group plc 
registered in the united kingdom
company registered number 03452251
vat number 927 1066 31
wwwsweettgroupcom


Summary:
 chairman’s statement
michael henderson
chairman
read more about your chairman
p32
it has been a year of great progress for  
your company we have a business with an 
integrated offering a global network of 58 
offices in 18 countries across five continents 
and our operating markets have improved  
we have gained important market share  
and the geographic sectorial and personnel 
diversity scale and shape of the business  
have enabled us to benefit from this improving 
trend in the form of increased profitability 
driven by mainly organic growth
the uk market specifically has improved 
with the economy now growing at nearly 
3 a year which is encouraging for  
sweett group as our uk business remains 
our largest and most established entity 
accounting for over 50 of group turnover 
in the year ended 31 march 2014 i am 
pleased to report that the uk business  
is gaining market share as in particular  
our investment in the infrastructure and 
energy sectors has paid off in addition 
great progress has been made with larger 
international clients many of which are  
now using sweett group across several 
regions which is a gratifying trend and 
which is taking us into new markets
we are two years into our three year strategic 
plan which i am pleased to report has been 
extended by a further year to account for the 
considerable progress made to date and the 
improving markets particularly in our more 
established geographies such as the uk 
as one of the few remaining players who can 
offer a truly independent service with global 
capability we are in a solid position to benefit 
from the improvements which we see and 
we are well placed to build on the strong 
foundations for the next phase of our growth 
with a wellestablished uk and european 
business and a scale position in apac  
a segment which has almost doubled in size 
over the last three years and is approaching 
critical mass the ceo’s review which follows 
this statement goes into more detail around 
the group’s strategy to 2016
financial performance
revenue for the year was up 109  
to £894m 2013 £806m and profit  
before tax was up 59 to £28m 2013 
£18m after exceptionals amortisation of  
acquired intangibles and net finance costs 
stripping out the one off benefit of £10m 
from the unwinding of the australian hedge 
contract the £12m financial close of leeds 
social housing and the sale of hub north 
underlying profits were £32m up 23 
2013 £26m whilst operating margins 
were down slightly year on year at 26 
2013 29 basic earnings per share  
was up 47 to 28p 2013 19p
net debt at the yearend was further reduced 
to £63m 2013 £7  1m and well below the 
peak of £11m in 2012 much focus has  
been put on improving our working capital 
management with a priority being placed 
specifically on our needs in apac 
sweett group plc annual report and accounts 2014 06 nonexecutive directors
executive directors
chairman
4
1
3
0 – 2 years
3 – 10 years
10 years
25
25
50
construction
finance
other
50
375
125
governance
board composition
board of directors
michael henderson 
chairman
dean webster 
chief executive officer
patrick sinclair 
chief financial officer
derek pitcher 
managing director
kim berry 
managing director
nicholas woollacott 
nonexecutive director
roger mabey 
nonexecutive director
david wilton 
nonexecutive director
for more information
p32
the directors have recommended a final 
dividend of 08p per share 2013 07p 
which will make a total dividend of 13p for 
the year an increase of 30 2013 10p 
illustrating the board’s confidence in the 
future of the group
wall street journal allegations
the company has made announcements 
regarding allegations made in the wall street 
journal in june 2013 of improper business 
conduct by a former employee of the group 
operating in the middle east discussions are 
ongoing with the serious fraud office sfo 
in the uk and with the department of justice 
doj in the us the group is cooperating 
with both these organisations and no 
proceedings have been issued by either  
of them the group has commissioned  
a further independent investigation into  
the allegations by mayer brown llp 
in response to the allegations made in  
the wall street journal the company  
has identified the need to further improve  
our internal controls and risk procedures 
particularly in locations where we have fewer 
numbers of staff a separate governance 
function has been created which will work 
closely with our finance function the audit 
committee and our internal auditors kpmg 
most importantly all our clients and staff 
remain loyal and the underlying business  
is not affected
people
in january 2014 we welcomed patrick 
sinclair to the board as chief financial 
officer patrick has already made a positive 
contribution to the business in addition  
a number of senior level appointments  
were made during the year including philip 
watt joining as company secretary in 
september 2013 
we continue to grow our team and evolve 
employment practices and policies to 
ensure we are able to attract and retain  
the best talent and i was delighted that 
sweett group received “investors in people” 
accreditation in the uk during the year 
we have an exceptional team of people and 
our success is due to their professionalism 
creativity and commitment i would like to 
thank the sweett group team in particular 
for their hard work and commitment
tenure
experience
i would also like to thank my board and senior 
colleagues for their help and support during 
my four years as chairman we experienced 
extreme recessionary conditions in our 
traditional markets and various setbacks in 
the first three years but with a clear strategy 
combined with the professionalism of my 
executive colleagues around the world  
we have seen the group through this difficult 
period i therefore leave at the forthcoming 
annual general meeting with a certain 
amount of pride in what has been achieved 
by them also leaving with me at the annual 
general meeting will be nick woollacott  
a nonexecutive director who has served  
on the board with great distinction for  
the last seven years and latterly as the 
senior independent director nick has  
led the nominations committee in 
choosing my successor as chairman  
and an announcement on this appointment 
will be made shortly
outlook
the group is trading well as we continue to 
gain market share and leverage the benefits 
of our global network while benefiting from 
the improving economic environment in 
some of our key markets as we move 
forwards with an order book of £109m  
an improving margin trend and a tighter 
focus on working capital the board looks 
to the future with increased confidence
michael henderson
chairman
30 june 2014
strategic report
sweett group plc annual report and accounts 2014 07
governance financial statements