annual report and accounts 2008 cyril sweett group plc global knowhow
cyril sweett group plc
registered in the united kingdom
company registered number 03452251
vat number 707 3179 38
registered office
60 gray’s inn road
london wc1x 8aq
wwwcyrilsweettcom
 australia
 france
 india
 singapore
 spain
 uae
 uk  ireland
global 
knowhow
cyril sweett group plc
annual report and accounts 2008 contents
business review
who we are 01
what we do 02
financial highlights 04
business highlights 04
chairman’s statement 05
chief executive’s review 06
people and quality service 12
market outlook 16
project management 20
quantity surveying 22
specialist services and 
management consultancy 24
financial review 26
governance
board of directors 30
report of the directors 32
statement of directors’ responsibilities 35
corporate governance 36
directors’ remuneration report 39
independent auditors’ report 42
financial statements
consolidated income statement 44
statement of recognised income 
and expense 45
consolidated balance sheet 46
company balance sheet 47
cash flow statement 48
notes to the financial statements 49
investor information
investor information 92
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cyril sweett group plc
annual report and accounts 2008
cyril sweett group plc
annual report and accounts 2008 who we are
cyril sweett group plc
annual report and accounts 2008
business review
01
cyril sweett is a leading international construction 
and property consultancy offering expertise in
quantity surveying project management
management consultancy and a comprehensive
range of specialist services
cyril sweett is unique within the industry as the
majority of our staff own shares in the business 
we believe this helps build a sustainable and
profitable business providing careers and personal
development opportunities over the long term
our philosophy is simple – ‘to be the natural 
choice for construction and property consultancy
services by being the best at everything we do’
who we are
01 02 cyril sweett group plc
annual report and accounts 2008
business review
what we do
business activity services
project management
cyril sweett provides experienced project
managers to control the development and
construction process for its clients project
managers typically have overall responsibility 
for the complete management of a project from
inception to occupation of the building but their
role can be for a specific task or activity
specialist services and 
management consultancy
cyril sweett offers a range of services which
complement the core project management and
quantity surveying services these are offered
either as standalone services direct to clients 
or are integrated into core service commissions
in all cases they give clients the ability to deal
with the increasing complexity of projects and
the need to ensure that property assets are
used to maximum efficiency
≤
for more information on project management go to page 20 of this book
or visit wwwcyrilsweettcom
≤
for more information on specialist services and management consultancy
go to page 24 of this book or visit wwwcyrilsweettcom
 development appraisals
 development
management
 move management
 operational
commissioning
 planning and programme
management
 post project evaluation
 ppppfi bid management
 project delivery
 project monitoring
 technical advisory
 best practice advice
 building surveying
 business case
consultancy
 business improvement
advice
 capital allowances
property tax
 dispute resolution
 due diligence
 facilities management
consultancy
 health and safety
consultancy
 project monitoring
 industry research
 legal and contract
support
 ppppfi consultancy
 ppppfi facilitation 
and investment
 project analysis
 portfolio appraisals
 property portfolio advice
 risk advice
 service and space
planning
 strategic procurement
advice
 sustainability advice
 value management
the facts
950 people 
29 locations 
11 countries 
quantity surveying
cyril sweett’s quantity surveyors advise clients
on costing and procurement issues throughout
the duration of a construction project the main
services are cost planning and feasibility studies
procurement cost management and whole 
life costing
≤
for more information on quantity surveying go to page 22 of this book or
visit wwwcyrilsweettcom
 cost benchmarking
 cost management
 cost planning
 engineering advice
 feasibility costings
 insurance valuations
 masterplanning advice
 procurement and 
contract advice
 project audits and
controls
 whole life costing what we do
sectors
global reach
 education
 health
 leisure
 life sciences
 offices
 ppppfi
 residential
 retail  mixed use
 transport 
infrastructure
 waste  energy
uk  ireland
belfast birmingham bristol cambridge cardiff coleraine 
dublin edinburgh exeter glasgow leamington spa leeds
london manchester newcastle norwich plymouth poole
southampton truro
the rest of the world
asia pacific brisbane melbourne singapore sydney 
europe madrid paris india mumbai middle east abu dhabi dubai 
cyril sweett subsidiaries and branches
cyril sweett group plc
annual report and accounts 2008
business review
03 03 04 cyril sweett group plc
annual report and accounts 2008
business review
financial highlights
business highlights
28
group revenue
20
08
07
06
05
08
07
06
05
08
07
06
05
08
07
06
05
08
07
06
05
£627m
£521m
£448m
£364m
operating profit
23
profit before tax
£58m
£47m
£42m
£35m
£59m
£46m
£42m
£35m
net assets
basic earnings per share pence
£266m
£141m
£111m
£89m
83p
74p
65p
58p
12
89
 international revenue 
up by 79 from £53m 
to £94m
 order book at record 
£86m to 2013
 secured major framework
agreements
 penetration of two 
new markets 
waste and nuclear
 international offices
opened in dubai 
abu dhabi and mumbai
 3 new ppp investments
 acquired jones sweett
uae 
 acquired since the year end
nisbet uk burns bridge
australia singapore and
uae and roger richards
wales uk
 headcount now at 
950 people chairman’s statement
cyril sweett group plc
annual report and accounts 2008
business review
05
welcome
the outlook in our chosen markets
remains positive and we see 
plenty of opportunity francis ives
chairman assesses our progress 
and future prospects
i have great pleasure in introducing the first full year preliminary
results since cyril sweett floated on the london stock exchange’s
aim market in october 2007 the flotation has given us the resources
to supplement our strong organic growth with acquisitions
i am pleased to report a very successful year for the group we have
achieved the goals that we set ourselves at the start of last year and
remain on course to deliver the strategic objective of £100m of
revenue in 2010 a target we stated at the time of flotation 
cyril sweett had another outstanding year of growth and development
in 200708 outstripping its past performance in revenue and
profitability and therefore meeting market expectations we began
the year with a strong order book and have built on this by focusing
on a strategy that will secure the longterm success of our business 
our success has been based on strong organic growth and we have
maintained our position as a top ten provider in the uk market 
we have extended our offer in existing and new areas of work
revenue increased by 20 to £627m operating profit increased by
23 to £59m and basic earnings per share increased 12 to 83p
at the same time operating margins increased from 91 to 93
our activities were cash generative and we ended the year with net
cash of £67m the international businesses have made excellent
progress and the total order book has reached record levels
currently standing at around £86m the board has proposed 
a final dividend in respect of the year ended of 16 pence per share
which together with the interim dividend totals 24 pence the final
dividend will be paid to shareholders on the register at 11 july 2008
payable on 18 august 2008 
the dynamics of the environment in which we operate are changing
rapidly through a combination of rationalisation and evolution in the
consultancy markets and new opportunities are opening up
overseas our challenge now is to propel the group into the top five
among our uk competitors operating globally
we have made further significant progress towards our objective of
becoming an international consultancy generating revenues of
£100m completing four earningsenhancing acquisitions by the end
of april 2008 these comprise the uk quantity surveying and project
management consultancy nisbet llp burns bridge which
specialises in project management in australia singapore and the
united arab emirates cyril sweett international formerly a joint
venture with dg jones and partners providing project management
services in the middle east and roger richards partnership
quantity surveyors operating in wales
in order to maintain our performance we have also strengthened
our management with new senior appointments across the group
in the coming year we will continue with our strategy to acquire
small and mediumsized businesses both in the uk and overseas
to add geographic penetration and access to new market sectors 
in addition we aim to consolidate our delivery systems by tightening
further the management of costs to ensure that we operate as
efficiently and effectively as possible this will be particularly
important in the uk where we will respond to changing market
conditions addressing markets that are slowing and developing
those that continue to generate increased opportunities 
the progress we have made this year has continued to raise the
profile of cyril sweett as a group that is recognised as a key player
in the construction and property markets we are very excited by 
our progress and see significant opportunities ahead to build the
business beyond current expectations
we now have 950 people working for cyril sweett and they are
motivated to do their very best to deliver high quality advice and
services to our existing and future clients this is central to our
success and without the diligence and spirit shown by our staff
working as a team we would not have delivered such an excellent
performance on behalf of the board i would like to thank them
sincerely for all their hard work
outlook 
cyril sweett is a diversified business operating in both the public
and private sectors with an order book that has grown significantly 
the international order book is ahead of target and currently
represents 28 of the group order book
we believe that the group is well positioned to continue to develop as
a global service provider accelerating growth overseas whilst at the
same time improving its position in the uk market delivering double
digit growth in revenues in the years ahead our ability to deploy
resources flexibly across new markets and locations together with
our acquisition strategy all underpin our confidence in the future
francis ives chairman
05 introduction
cyril sweett as a top ten international construction and property
consultancy offers expert advice in project management quantity
surveying management consultancy and a comprehensive range 
of specialist services 
the group services a range of construction and property related
projects across public and private sectors including offices retail
and mixed use health education prisons residential life sciences
transport and infrastructure the strength and resilience of cyril
sweett continues to be based on the group’s diverse and balanced
sector penetration combined with wide uk and international
geographical coverage this enables the group to manage the
cycles of both public and private sector investment by being equally
responsive to opportunities and threats in each at the same time
the skills mobility and working practices of our people enable
them to operate flexibly across sectors and project locations 
the group is structured geographically to ensure effective regional
management and local service delivery the group has nineteen
branch offices in the uk three more in europe two in the middle
east one in india three in australia and one in singapore these
are further supported by an alliance network offering services in
over 20 other locations throughout the remainder of europe the
middle east and asia pacific regions 
the group has a number of differentiators a strong position in its
key markets which are well balanced between the public and private
sectors the cyril sweett brand which has a strong reputation and is
recognised as a consultant to large projects and a strong ethos of
employee ownership which sets us apart from our competitors 
we aim to develop each employee to maximise their full potential
employee ownership clearly drives crossselling throughout the
group encourages new people to join and supports retention of 
the best people we benefit from having clear visibility of future
earnings our order book which stands at £86m is the strongest 
it has ever been as a result of our drive to diversify we adopt a
conservative approach to valuing our order book and exclude
anticipated contracts under framework agreements the increasing
rationalisation of supply chains and moves towards framework
06 cyril sweett group plc
annual report and accounts 2008
business review
strategy and
performance
dean webster chief executive officer chief executive’s review
cyril sweett group plc
annual report and accounts 2008
business review
07 07
“cyril sweett is a diversified business
operating in both the public and private
sectors and we are well positioned 
to capitalise on new growth sectors 
in the market both in the uk and
internationally”
agreements combined with our ability to deliver on major long
term projects means we are in a position to accurately predict
future revenues and adapt to changing circumstances 
the flotation raised £84m net of expenses with first mover
advantage by being the only quoted consultancy amongst our
major uk competitors we are in a strong position to be a leading
player in the consolidation of what is currently a highly fragmented
construction consultancy market with cash on the balance sheet
strong banking support and a proven acquisition model we are
able to continue to make further significant acquisitions both in the
uk and overseas
group strategy
we operate in markets where there are two main opportunities for
growth in the uk consolidation of a highly fragmented market has
begun and is expected to accelerate over the short to medium
term internationally the growth in construction activity in
developing markets coupled with high demand for ukstyle
quantity surveying and project management expertise creates a
significant opportunity success in implementing our international
diversification strategy is evidenced by the growth in our overseas
order book
key strengths
market position
we operate across a wide number of areas split almost equally
between the public and private sectors in those in which we are
preeminent such as health public private partnerships ppp 
and retail we offer a much wider service offer than our competitors
with dedicated and experienced teams in all of our sectors together
with an excellent uk network of offices we are well placed to
increase our market share we are rapidly expanding our overseas
coverage and are building a strong order book with both new and
existing clients the cyril sweett brand has a strong reputation 
and we are known for our ability to undertake large projects
people development
our ethos of employee ownership provides a clear differentiator
between us and our competitors we believe that if our people
invest in our company we should invest in our people we aim to
develop each and every member of staff to their full potential and
to do the same for new staff when they join the group the sense 
of ownership that our staff have in the company drives not only 
a commitment to understand and to help our clients but also a
willingness to work collaboratively with colleagues we see that
employee ownership drives crossselling throughout our company
encourages new people to join the business and supports our
desire to improve retention levels 
visibility of earnings
our order book is the strongest it has ever been as a result of our
drive to diversify – offering more services across more markets
both in the uk and overseas the increasing rationalisation 
of supply chains and moves towards framework agreements
combined with our ability to deliver on major long term projects
means we can accurately predict future revenues across our
operation and adapt to changing circumstances 
growth opportunities
our flotation raised £84m of cash with bank support and an
acquisition model based on a mixture of cash and shares we 
are able to make further significant acquisitions both in the uk 
and overseas
with first mover advantage by being the only quoted consultancy
amongst our competitors we are in a strong position to be a
leading player in the consolidation of what is currently a highly
fragmented construction consultancy market
proven track record
year on year the group’s revenues have continued to grow with 
an average increase of over 18 per annum – and profits growing
at a similar rate we are still experiencing strong demand in most
sectors and in fact still find the sourcing of good new people to be
our biggest challenge if therefore there is a softening in the uk
market we see this as an opportunity to source new recruits 
more easily increase market share where we have competitive
advantage source acquisitions at more competitive prices and
switch resources flexibly from location to location  review of operations
cyril sweett has achieved outstanding organic growth since its
management buy out in 1998 a main focus for the group is to
continue on this course through further strengthening its market
share in identified growth sectors education health transport 
and infrastructure industrial prisons retail and pfippp and to
develop services in new growth markets such as waste utilities
and energy in both the uk and overseas
during 200708 we made significant progress towards achieving
this strategic priority organic revenue growth in the uk market
was 14 and overseas revenues grew by 79 we successfully
managed to crosssell specialist and management consultancy
services to existing clients and have seen a 35 uplift over 200607
in this area 19 of uk income was generated through frameworks
and we secured further agreements with several clients including
the office of government commerce home office estate société
générale and network rail we also secured projects in two new
market areas waste where we are part of a consortium to build
and operate one of the most advanced waste treatment projects in
europe and nuclear where we are supporting a client delivering 
a power station project in france 
growth in our established locations and increasing market share
has enabled us to move into larger premises in birmingham
bristol edinburgh and glasgow and we have opened new offices 
in abu dhabi dubai and mumbai we have secured major projects
including yas island and jumeirah village in the uae and have an
enviable pipeline of future work 
cyril sweett has been extremely active in providing a broad range 
of services to the education and health sectors including procure 21
and building schools for the future we have also been selected as
preferred bidder as part of the education for inverclyde consortium
and reached financial close on the dumfries and galloway council
smarter schools ppp project
since the ipo we have made significant progress in our strategy 
of growth through acquisition acquiring the remaining 50 of the
shares of cyril sweett international formerly jones sweett
international in the middle east this business expanded to 35
people during its first year of operations and has established a
healthy order book in the uk we acquired nisbet llp which has
provided new clients in the public sector especially in education
together with further branch offices in the south west of england
in south wales we acquired roger richards and finally we
acquired burns bridge headquartered in australia with branch
offices in three cities together with branches in singapore and 
abu dhabi we expect each acquisition to be earnings enhancing
and to provide a platform for further growth not just locally but
throughout their wider regions i am pleased to be able to report
that integration of these businesses is on plan
our strategy sees us increasing overseas activity fivefold by 2010
by which time we expect to be delivering at least 25 of group
revenues from the middle east india and australasia overseas
revenue by geographical destination during 200708 reached 
£94m and was 79 higher than 200607 and represented 15 
of group revenues
we set up a dedicated office in mumbai in order to capitalise on 
the emerging construction market in india and have aligned our
structure internally and created a separately managed international
business with dedicated resources infrastructure and processes 
in order to support the focus on international growth significant
international projects include masdar and zabeel corporate park
in the middle east raffles hotel in singapore freestyle park in
moscow and hospital san dureta in spain 
during 200708 the board made progress in improving operating
profit margins reducing lockup debtor and work in progress days
and monitoring the pricing and risks associated with all major
projects efficiency initiatives throughout the business have
proportionally reduced indirect costs and a new package of
efficiency measures will not only improve our processes and
delivery systems but also benefit bottom line performance to
address a tightening uk marketplace 
recruiting and retaining the right people is one of the key issues
this business faces we seek to recruit and retain high performing
people to ensure that our reputation for excellence is maintained
during 200708 we appointed a group hr director to drive 
the strategy 
over 58 of our colleagues are shareholders which we believe
aligns the interests of both our internal and external shareholders
strategy and 
performance 
continued
08 cyril sweett group plc
annual report and accounts 2008
business review to deliver a common goal following the flotation 200 new
employees joined the group and the percentage of employee
shareholders is targeted to grow markedly we achieved
recognition when we won the 2007 award for best share
ownership plan in the category of company with fewer than 1500
employees from the european centre for employee ownership
we continue to prioritise the delivery of top quality service to our
clients and have established a dedicated service delivery team to
coordinate service quality levels across the group the service
delivery team is responsible for deploying quality management
systems and project tool kits ensuring that all parts of the
business operate on a common platform continually improve and
innovate and thereby add value to our clients we have introduced 
a new structure for operational delivery each team leader 
has responsibility and authority for project success resource
management and client satisfaction and we are training all key
account management teams to deliver new techniques and
approaches to maximise crossselling client satisfaction and 
client retention 
the future
we are confident that we can achieve our strategic goal of delivering
£100m of revenue by 2010 the year ahead will see us continue to
build a competitive position in growth sectors where we are strong
and extend our public sector exposure adapting our existing
resources to support the new growth areas that our market led
research dictates we will continue with the development of our 
uk regional businesses in order to develop top three status in 
each location maximising cross selling and will apply the same
principles to build our businesses in europe and the middle east
and further develop our presence in the gulf states india
southern asia and australia 
we are evaluating a number of earnings enhancing acquisition
opportunities to accelerate growth in our uk and international
branch network acquisitions will come with rigorous riskbased
due diligence and will be accompanied by robust integration
planning and execution
our strategy of combining acquisition and organic growth to build 
a global business is on track
chief executive’s review
09 cyril sweett group plc
annual report and accounts 2008
business review
09
“our strategy sees us increasing
overseas activity fivefold by 2010 by
which time we expect to be delivering
at least 25 of group revenues from
the middle east india and australasia“ 10 cyril sweett group plc
annual report and accounts 2008
business review
strategy and 
performance 
continued
investment case
1 clear three year plan to deliver shareholder value as part of
longterm growth strategy
the management has a clear business plan for the three years 
to march 2010 which should deliver substantial returns to
shareholders the plan sets a target of doubling revenues to 
in excess of £100m over the three year period in the longer
term management’s ambition is to create a much larger
international consultancy
2 highly fragmented market presenting significant acquisitive
growth opportunities
the quantity surveying and project management supply chain 
is very fragmented with up to 500 practices operating in the uk 
and it is also highly fragmented internationally cyril sweett has
potential acquisition firepower and management is reviewing a
pipeline of acquisition opportunities to be a consolidator in the
market although some of the larger construction consultants 
have made acquisitions this has been relatively limited because
the majority of the larger players and almost all of the larger
independent ones are partnerships with relatively limited access
to capital to fund acquisitive growth cyril sweett was the first
quoted player and will have a significant competitive advantage in
terms of its ability to consolidate the sector 
3 strong management team with an excellent track record
the cyril sweett management team includes a strong group of
experienced leaders with backgrounds in the construction and
property industry many members of the management team have
been working in the company since the mbo in 1998 and have
demonstrated a proven track record of consistently delivering 
growth for the company their depth of overall business experience
provides cyril sweett with a strong and talented senior management
team that has been instrumental in the company’s success 
the management team continues to be led by chairman francis ives
4 strong order book and high levels of repeat business
the order book currently stands at £86m up from £67m at
september 2007 28 of the order book comprises nonuk work
which represented just 15 of fy 08 revenue suggesting that fy09
will see further strong growth in overseas revenues following the
recent jsi middle east and burns bridge australiaasiamiddle
east acquisitions the order book figure excludes potential work
under frameworks which accounted for 18 of fy07 revenue the
order book only includes work already allocated under frameworks
in total the group has around 50 frameworks formal and informal
including royal bank of scotland goldman sachs jp morgan
chase english partnerships defra hm prison service the office
of government commerce and the home office chief executive’s review
11
5 healthy margins
in fy08 cyril sweett generated an operating profit margin of 93
margins have been consistently around this level for the last three
years this is in large part due to cyril sweett’s higher average fees
generated per fee earner which more than offsets the impact 
of higher employee costs 
6 broad sector exposure with healthy spread of work between
private and public sectors
a key focus for management since the mbo has been to create a
more broadly based business in terms of services delivered range
of sectors serviced and number of clients a key feature of cyril
sweett’s business is the combination of staff with strong sector
skills supported by a policy of transferability of key service oriented
staff between different sectors this means that the group should
be able to react to market trends in individual sectors to ensure
that growth targets are achieved the group has shifted its focus
towards the public sector and international activity in 2007 and has
therefore limited exposure to any potential downturn in the uk
private sector following recent turbulence in the financial markets
7 strong balance sheet and significant banking facilities
cyril sweett has a strong balance sheet providing significant scope
to pursue both organic and acquisitive growth opportunities 
dean webster chief executive officer
diversified 
sector portfolio
professional
service white
collar consulting
strategies
strategies
partnership and
joint venture
focus on core 
skill set
aligning the
business to
growth markets
longterm
relationships
framework
agreements
recruit and 
retain high
performing 
people
acquisition
strategy
key account
management
focus
structured
geographic
expansion
programme
project 
management
quantity
surveying
specialist
services
management
consultancy
proven growth business model 
“the management has a clear 
business plan for the three years to
march 2010 which should deliver
substantial returns to shareholders“
cyril sweett group plc
annual report and accounts 2008
business review
11 people and 
quality service
12 cyril sweett group plc
annual report and accounts 2008
business review
“as part of the new hr
strategy we have dedicated
greater resource to help
attract identify and source
high calibre professionals”
08
07
06
709
625
543
13
average number  
of employees 
08
08
08
90
75
70
client  
feedback 
449 05
08 68
meeting expectations
sector knowledge
client focus
professionalism
derek pitcher executive director
staff shareholder ethos
cyril sweett currently has 950 employees and a high proportion of
staff are shareholders in the business employee share ownership
is an important feature of cyril sweetts corporate culture which is
unique within our industry through it we want our people to act
like owners and care as much about the company as their personal
position companies which make a public commitment to employee
ownership often perform better than their peers
our taxefficient share schemes provide additional benefits to
employees buying shares in the company cyril sweett has
operated a share incentive plan sip in the uk since 2001 
is currently seeking irish revenue approval to implement an
approved profit sharing scheme in ireland and has recently 
made a taxfree share award in australia and singapore 
despite less favourable legislation in some markets we are
constantly looking at ways to extend our share ownership schemes
to all employees so that everyone has the chance to own shares 
in the company for which they work 
for three consecutive years from 2005 to 2007 our commitment 
to employee share ownership earned cyril sweett the award 
for best share ownership plan from the european centre for
employee ownership 
in the category of company with fewer than 1500 employees people and quality service
13
global knowhow commitment to delivering service excellence

people development
we have a human resources hr strategy that is capable of
sustaining the growth of the group as it expands both in its
international coverage and in employee numbers the objective 
of the strategy is to have the company recognised as an employer
of choice and capable of attracting and retaining high calibre
talented professionals
the strategy is built on four pillars
 initiatives to improve employee engagement
 leveraging mobility to share best practice between departments
and divisions within the uk and internationally
 nurturing a learning culture and
 growth through centrally coordinated recruitment campaigns
including an international graduate programme
the success of the strategy will – among other performance
indicators – be measured by its effectiveness at reducing staff
attrition increasing fee earner productivity improving the level 
of professional qualifications and further increasing the number 
of employees who are shareholders in the company
improving employee engagement
cyril sweett has a culture in which people are treated as
individuals with respect and dignity teams are kept small and an
informal management style ensures that people at all levels have
access to directors top management are encouraged to be ‘visible’
and a programme aimed at recognising and rewarding special
contributions is being developed 
we are reviewing our staff appraisal process to make it more
focused on objectives and key performance indicators it will also
reflect the competences identified that make us a successful
business all directors and managers are expected to conduct
monthly ‘onetoones’ with their subordinates where an open
objective twoway communication process is encouraged 
sustainability expertise
cyril sweett was the first construction consultancy
company to offer specialist sustainability services
and we continue to lead the market in this area
with an extensive range of services that includes
shaping high level public policy strategy
development and pragmatic project delivery 
our specialist sustainability team trains all 
of our feeearning staff in an understanding 
of the subject raising their awareness of the
challenges their clients face now and in the
future and enabling them to lead the debate on
potential solutions the training initiative covers 
a wide range of areas such as political social 
and regulatory drivers for more sustainable
construction and property management areas
where our staff can influence the sustainability
agenda of their projects breeam code and
energy performance rating systems
new training and development team
in 2007 the company set up a dedicated learning
and development team in order to establish 
a programme of continued professional
development events technical and professional
updates and seminars aimed at improving the
knowhow and wider business skills of our
people we have ensured that our graduate
development programme meets the standards 
of the royal institution of chartered surveyors
the company’s directors have been through a
programme of board level training and a new
accredited management programme has been
established for middle management employees 
employee shareholder roadshow
cyril sweett’s employee shareholder culture is
unique in the industry and we are committed to
ensuring that our staff continue to benefit from
the rewards that ownership brings over recent
months the company secretariat conducted 
a series of roadshows throughout cyril sweett
uk offices to present a newly published ‘uk
employee shareholder guide’ a presentation
was given followed by a qa session and a
significant amount of interest has been received
in the scheme 
cyril sweett group plc
annual report and accounts 2008
business review
13 sharing best practice
we have implemented an international mobility strategy 
whereby staff are encouraged and supported to work overseas 
the programme helps to share best practice helps to develop
executives with a broader outlook and helps to nurture our
international business as part of a cohesive brand
a learning culture
in 2007 we set up a dedicated learning and development team who
coordinate a programme of continued professional development
events technical and professional updates and seminars aimed 
at improving the knowhow and wider business skills of our
professionals the strategy also seeks to help improve employee
retention by offering our workforce the opportunity to develop
themselves in the widest sense we are working on a competency
framework which will help determine promotion through the ranks
associated learning requirements improved clarification of job
roles and be used as a basis for selection in recruitment
centrally coordinated recruitment 
as part of the new hr strategy we have dedicated greater resource
to help attract identify and source high calibre professionals a key
priority is the development of our employer brand which will help
drive greater employee commitment to the cyril sweett brand and
differentiate ourselves from our competitors so that we can
compete more effectively for talent 
the company is a meritocracy and operates a flexible remuneration
policy that enables high achievers to be appropriately rewarded
there is intense competition for good people and skill shortages 
in a number of areas we are making a number of improvements 
to our overall employee benefits package so as to maintain our
competitive position ensuring that remuneration levels reflect
individual performance while not eroding the firm’s margins 
of profitability
people and 
quality service 
continued
delivering quality 
quality is integral to everything that we do and the focus of our
service delivery strategy is to create the systems processes
information and guidance to enable our staff to deliver the best
possible service to our clients this involves us combining centrally
managed development with a culture of continual improvement
and of sharing across the organisation to meet client needs for
local delivery 
we use three management systems to assess the effectiveness of
our service
 the balanced scorecard is a performance management
process enabling progress against the business plan and
strategic targets to be measured across the company 
14 cyril sweett group plc
annual report and accounts 2008
business review
client
client attract grow 
satisfaction new existing
clients clients
client new increased
satisfaction clients business
objective measure
finance
income profit debtors
order income marginnet job lock up
book per fee profit profit
earner ability
objective measure
people
attract retain develop 
staff staff staff
growth satisfaction training
objective measure
service delivery
business 
delivery quality improvement
efficiency service initiatives
performance
objective measure people and quality service 
15
 it is closely linked to our quality management system which
manages individual project service delivery and which is
externally audited every six months
 our environmental management system manages our
environmental impacts this is being implemented to the 
iso 14001 standard
performance is managed through service level agreements and
key performance indicators kpis with the results converted 
into smart specific measurable achievable realistic and time
framed targets 
the kpis for determining client satisfaction measure our services
in terms of
 overall performance
 value for money
 quality of service
 timely delivery
 health and safety 
business success is measured by improved profitability repeat
business and clients’ response to our service delivery initiatives
in september 2007 we established a new highcalibre service
delivery team whose remit is to ensure that the services we
provide to our clients meet agreed objectives and that standards
are consistent across sectors and geographical regions they are
also charged with identifying best practice and free from the
pressures of operational delivery to develop innovative solutions 
to client and business issues in key areas to provide the foundation
for continuous improvement 
along with the implementation of the balanced scorecard 
across the business and the application of our environmental
management system to all offices by the end of 2009 the team’s
initial priorities have included the development of a new intranet
and best practice guidance and economic briefings for all of our
market sectors 
the new intranet which is scheduled for delivery in 200809 will
provide the whole business with real time access worldwide to all
cyril sweett documentation this interactive facility will benefit
clients and improve our own internal communication and efficiency
the information contained on the intranet will be continuously
updated by specialist owners
going forward we plan to establish a managed process of
prioritised change to give clients ever better value while
recognising that this must be achieved within the commercial
constraints of the operational business 
cyril sweett group plc
annual report and accounts 2008
business review
15
for more information on our clients visit wwwcyrilsweettcom
≤ 16 cyril sweett group plc
annual report and accounts 2008
business review
market outlook
market conditions
the more adverse economic climate and credit crunch have had a
notable impact on the uk construction market whilst the market
expanded at a brisk pace during the latter half of 2007 as we had
expected this pace of growth was unlikely to be sustained given the
deterioration in private residential activity and employment levels
between july of last year and april this year construction
employment is estimated to have fallen by around 2 and the
residential downturn has worsened into 2008
the official first quarter 2008 construction output figures published
in early june
3
therefore failed to provide any surprises overall real
term construction output expanded by 05 quarteronquarter as
per the previous national statistics preliminary gdp release as
expected private residential and private industrial recorded notable
falls in output this is consistent with these two market sectors
continuing to be the weakest performers and private commercial
also weakened modestly after the doubledigit pace of growth of
the sector during the past two years we continue to believe that
these three sectors will remain the weakest within the new work
side of the market over the remainder of this year and into next 
in the republic of ireland the residentialled downturn has
worsened with a broaderbased market decline activity is falling 
in offices leisure other commercial and retail whilst residential
remains by far the weakest sector of the market the infrastructure
sector should be supported by transport projects for the metro and
rail both the uk and irish construction markets are set for a
difficult period over at least this year and into next a contraction 
in the irish market is expected for 2008 but now the uk market 
is also likely to fall into recession this year too in contrast the
markets in india and the united arab emirates are seeing buoyant
activity levels and we expect them to record continued strong rates
of growth 
economic outlook 
global economic and financial conditions have seen a further
deterioration since the turn of the year  this has again been seen
most keenly in the united states and europe with economic
indicators turning down – resulting in renewed downgrades to
economic projections
1
 developing economies are generally seeing
continued buoyancy though they too have seen growth projections
reduced as a consequence of weaker conditions in the developed
economies energy and food price inflation has become a growing
difficulty for both the developed and developing economies though
it is the latter which are generally seeing a greater passthrough
effect to official inflation rates on the financial front the
crystallisation of further subprime related losses weaker financial
asset prices and western banks reining in their lending has seen
the credit crunch continue 
the uk economy has continued to slow around the turn of the year
after if grew above its trend rate during 2006 and 2007 having
slowed to around trend in the final quarter of 2007 the economy
decelerated to a subtrend pace in the first quarter of 2008
2
 this
marked the weakest quarter for three years and alongside other
more timely indicators suggests that the economy has entered an
economic downswing over the first half of the year 
1
world economic outlook international monetary fund april 2008
2 
uk quarterly national accounts – q1 2008 national statistics june 2008 
3
output and employment in the construction industry national statistics june 2008
4
preliminary construction forecast for 2008 dkm economic consultants april 2008 market outlook
17
uk market outlook
we have previously warned about difficult market conditions for
both this year and next given weaker economic and financial
conditions
5
 whilst consensus economic projections
6
have fallen for
both 2008 and 2009 with growth averaging around 15 over the
two years the risks of a weaker economic performance and hence
weaker construction output are rising indeed the residential
housing market has weakened further – both activitywise and in
terms of prices – employment in construction is falling and credit
conditions are tightening further  we now expect that overall
construction output contracts modestly not only this year but
during 2009 too as the residentialled downturn becomes more
severe and broadlybased
among independent commentators the consensus opinion has
shifted since the turn of the year from modest market growth to
outright contraction for example the construction products
association cpa recently downgraded their forecasts published
from their january update back then they expected realterm
growth of around 1 for 2008 and 2009 with growth of less than 1
thereafter  in their june forecasts
7
the cpa now predict an outright
contraction of 13 for 2008 16 for 2009 before a modest
recovery of 07 in 2010 these downgraded forecasts are primarily
due to a much deeper contraction in the housing sector – around
20 over the two years 200809 as opposed to around 2
previously over the two years the cpa are also slightly more
pessimistic on the repair and maintenance sector and private
commercial than previously though the latter is expected to
expand during 2008 on the back of existing projects underway 
experian in their april forecast
8
predict a modest contraction in
construction output of 04 this year but a firm recovery to 17
in 2009 and 13 in 2010 their 2008 forecast places the industry in
a mild technical recession – with total new work also contracting by
11 after this april forecast we warned of the downside risks to
this year and did not also expect such a firm recovery in 2009 with
the cpa again at the more pessimistic end of the forecast
spectrum it would not come as a surprise if experian come 
their summer update were to downgrade their forecasts in line 
with the cpa 
in terms of sectors there is likely to be a greater contrast between
public and private construction output trends over the three years
for example public housing is expected to expand over the three
years whilst private house building is set to contract during this
year and next with only a modest recovery in 2010 public non
residential should also be another growth sector with pfi schemes
 particularly in education and to a lesser extent health  as well as
the boost from the 2012 olympics and paralympics in contrast
private industrial is set to contract during 2008 and 2009 with some
stabilisation during 2010 as uk economic conditions improve
private commercial – which encompasses offices retail and leisure
– should be supported by existing schemes for this year but with a
contraction in activity commencing in 2009 and worsening in 2010 
common to both the public and private markets infrastructure is
likely to be the strongest growth sector over this year as well as
next we expect infrastructure output to grow at an accelerating
pace building on the modest growth achieved during 2007 after a
number of years of weakness significant areas of infrastructure
growth include waste water rail airports as well as pfi schemes 
cyril sweett group plc
annual report and accounts 2008
business review
17
london united kingdom
5
see the q1 and q2 2008 editions of the cyril sweett quarterly review 
6
forecasts for the uk economy hm treasury june 2008
7
construction industry forecasts construction products association summer 2008 
8
construction forecasts experian spring 2008 update  18 cyril sweett group plc
annual report and accounts 2008
business review
market outlook 
continued
market conditions – united arab emirates
the market is strong with around £20bn of building projects
currently under way whilst the highest levels of activity are
primarily concentrated in the more mature dubai market 
activity levels in abu dhabi are growing strongly moreover the
forthcoming launch of the abu dhabi comprehensive development
plan will provide a significant boost to the abu dhabi market 
in dubai market activity is still growing at a brisk pace and
expected to remain strong over the next twelve months and beyond
activity has been strong across all sectors though arguably a little
less strong in public projects in the education and health sectors
over the next three months activity in other sectors is generally
expected to remain buoyant though we see a slight cooling in
offices and industrial activity shortages of major contractors
subcontractors and lack of interest from tenderers are getting
worse as are planning delays and delays to project start times
major projects currently underway include the jebel ali airport
dubai mall and dubai land 
the smaller abu dhabi market is similarly buoyant and we expect
firm construction growth for at least the next twelve months
activity across all sectors of the market is growing strongly and 
this broadbased growth is expected to continue over the next 
three months infrastructure activity is especially strong and within
leisure the hotels subsector could see especially strong activity
over the medium term however shortages of contractors
subcontractors and interest from tenderers are all getting worse 
as are project time and cost overruns major projects include yas
island alraha beach and masdar city 
market conditions – republic of ireland
the slowdown in the republic’s construction sector is more
advanced than in northern ireland and the rest of the united
kingdom activity is still decreasing and we expect this to continue
for the rest of this year  looking to 2009 though the consensus
among economists is for economic growth to rebound the balance
of risks point to another year of weak gdp growth and depressed
construction market conditions the residential sector which led
the market downturn remains the weakest part of the market with
prices and activity still falling this has resulted in a knockon
impact on other sectors with contracting activity seen in offices
leisure other commercial and retail 
the broaderbased weakening of the market has released 
further capacity which has increased competition for tenders 
it is more common to find developments faced with tighter funding
conditions or being reevaluated leading to delayed start times 
or outright cancellation whilst public sector works should provide
some support for the infrastructure sector  notably transport
projects for the metro and rail – other public sector works could 
be curtailed due to the deterioration in the public finances 
there is therefore a risk of a trimming in education and health
construction budgets as the public finances are hit by the economic
downturn certainly there are signs that public sector projects are
already being postponed or slowing due to the deterioration in the
public finances
on the cost side materials cost inflation is continuing to fall 
and we still see this trend running for the foreseeable future given
the contraction in market activity however given the underlying
upward pressure on input costs we think that materials cost
inflation will eventually stabilise once the contraction in output
begins to bottom out labour cost inflation also continues to
decrease and we expect this to continue for some time given the
squeeze in contractors’ average margins and mounting
construction redundancies all in all average tender price 
inflation is likely to remain negative this year in contrast to
northern ireland where tender inflation should remain positive
despite its market slowdown market outlook
19
construction cost inflation pressures continue to pose a significant
challenge both markets are seeing strong increases in materials
cost inflation there are shortages of cement and steel with the
latter believed to have increased by around 30 over the past few
months alone labour costs are increasing and have risen slightly
faster than usual over the past few months due to labour strikes
and then as a result of the official increase in the minimum wage in
dubai whilst we are expecting some stabilisation in labour cost
inflation pressures over the next few months continued high rates
of domestic inflation and us dollar weakness could see workers’
real take home pay cut again 
average contractors’ margins are increasing and this is seen
continuing with some potential for stabilisation in around twelve
months’ time tender price inflation remains firm but again is seen
stabilising around the turn of the year 
market conditions – india 
the market is growing rapidly and we expect market activity 
to remain buoyant over the next twelve months activity is firm
across all sectors of the market with notable hot spots in the
infrastructure offices leisure other commercial and retail sectors
this is seen continuing for the foreseeable future with increasing
activity also anticipated in education health and industrial
residential is experiencing broadly steady activity levels the 
rapid growth of the market has created supply bottlenecks with
shortages of contractors and specialist subcontractors getting
worse delays to project start dates project overruns and
cancellations are getting slightly better – consistent with the
buoyant market backdrop 
on the cost side the general inflation environment has become
more challenging with official weekly wholesale price inflation now
running at over 11
9
on the back of rising food and energy prices
materials cost inflation remains a difficulty and is expected to
continue rising during the next twelve months similarly labour
cost inflation is also rising as there is a shortage of higherend
skills and experienced workers more generally relative to demand
these cost pressures coupled with buoyant market conditions are
allowing contractors’ to significantly increase their average
margins especially for larger projects tender price inflation is
rising and expected to remain firm for the foreseeable future 
“the market is growing
rapidly and we expect
market activity to remain
buoyant over the next
twelve months“
cyril sweett group plc
annual report and accounts 2008
business review
19
mumbai india
9
central statistical organisation india june 2008 “project management is 
a growth area for the 
business demonstrated 
by the scale and complexity
of projects that are now
being undertaken”
20 cyril sweett group plc
annual report and accounts 2008
business review
project management
08
07
06
£20576m 
£18182m
£14927m
revenue growth 
13
services provid ed
 development appraisals
 development management
 move management
 operational commissioning
 planning and programme management
 post project evaluation
 ppppfi bid management
 project delivery
 project monitoring
 technical advisory 21

contribution to group strategy
cyril sweett’s project management business has grown rapidly
over the last five years to become one of the most successful
practices in the uk generating significant opportunities for other
skill groups within the business 
our ability to respond to the demands of our clients both in the uk
and internationally demonstrates that we are building a business
that is flexible enough to adapt to the rapidly changing environment
in which projects are being both procured and delivered 
the post period acquisition of burns bridge a project management
business with offices in australia and singapore has provided us
with a platform to support our clients in the asia pacific region
complementing our existing operations in india the middle east
and europe 
in addition our position as market leaders in the delivery of pfi
technical advisory services means that we are well placed to export
our sector skills and expertise into these markets
in the uk we have secured a number of national framework
agreements with clients such as english partnerships and
partnerships for health and these continue to be an important
source of repeat business
in the current economic climate our priority as a project
management business is to build a capability that is flexible and
responsive and enables us to deliver services to where our clients
are doing business 
performance and kpis
trading conditions for project management services both in the uk
and internationally remain favourable with strong sustainable
growth being experienced at the present time in hotels leisure
health education and transport project management grew
organically by 132 in the last financial year by continuing to focus
on our core sectors in the uk and by supporting some of our key
clients overseas 
priorities
we will continue to develop our ability to provide a consistent high
quality service to our clients both in the uk and internationally by
developing our people and investing in the infrastructure needed to
achieve this
key to our growth is our ability to attract and retain talented people
in 2007 we launched our graduate training programme for project
managers aimed at both cognate and noncognate graduates the
twoyear programme provides graduates with a combination of on
thejob experience and external training leading to a recognised
professional qualification in project management 
as part of our commitment to add significant and specific value to
our clients’ projects we launched our ‘project management toolkit’
in 2007 intranet based the ‘toolkit’ provides our project managers
with access to a comprehensive set of processes and standard
documentation which are constantly updated in line with best
practice we plan to roll this out to all of our international offices
over the coming year 
we must also look to new markets our ability to position ourselves
within new markets is demonstrated well by our move into life
sciences where we are now providing project management services
to the medical research council we will continue to examine other
sectors which may provide opportunities for growth in future years
project management
global knowhow commitment to delivering service excellence
cyril sweett group plc
annual report and accounts 2008
business review
21
01 north middlesex university hospital london
cyril sweett was appointed as the trusts lead technical advisor for the redevelopment
of the north middlesex university hospital under the private finance initiative cyril
sweett prepared the full business case which was approved in summer 2007 and
enabled the project to achieve financial close in august 2007
02 fc200 west london
fc200 is the second office development at first central park and provides
160789ft2 of high quality office accommodation cyril sweett developed a model 
for the procurement of the building that enabled the scheme to be developed to
planning and contractprice agreement within the agreed constraints of funding 
and expenditure on fees 
03 yas island abu dhabi
cyril sweett is providing project management and cost consulting services on this
worldclass real estate development in abu dhabi the commission is for the retail
element of the development which comprises over 700 retail units two departments
stores a signature anchor store and parking for over 16000 cars 
01 02 03
client london  regional properties  architect ryderhks quantity surveying
22 cyril sweett group plc
annual report and accounts 2008
business review
08
07
06
£32986m 
£27113m
£23345m
revenue growth 
22
“we draw on the highest
calibre of skills and the
most accurate uptodate
data to ensure that projects
are delivered on time and
within budget“
services provid ed
 cost benchmarking
 cost management
 cost planning
 engineering advice
 feasibility costings
 insurance valuations
 masterplanning advice
 procurement and 
contract advice
 project audits and controls
 whole life costing 
quantity surveying
global knowhow commitment to delivering service excellence
cyril sweett group plc
annual report and accounts 2008
business review
23
contribution to group strategy
the quantity surveying business has experienced strong consistent
organic growth in key markets such as retail commercial and
health in the last three years whilst the company will retain its
competitive advantage in these markets the company aims to grow
other public sector markets such as education transport and
infrastructure cyril sweett is well positioned to grow these
markets due to the acquisition of nisbet llp a business with an
excellent reputation for delivery quantity surveying services to the
public sector  
the company has been developing business with international
clients in line with the group strategy and has won major projects
with blue chip commercial clients such as goldman sachs 
royal bank of scotland and jpmorgan chase the business has
established stronger relationships with signature architects as they
too expand internationally especially in the middle east where we
are involved with projects such as masdar al raha beach and yas
island key framework agreements have been successfully secured
with société générale and network rail
accurate cost modelling lies at the heart of any successful property
venture and we draw on the highest calibre of skills and the most
accurate current data to ensure that projects are delivered within
budget and maximise the value of the investment cyril sweett
continuously seeks to attract high calibre staff and in 2007 we
revamped our graduate training programme which is aimed at
cognate and noncognate graduates 
performance and kpis
the quantity surveying business maintained its strong performance
overall and grew organically by 22 in the last financial year  
priorities
cyril sweett is continuously seeking to attract and develop the 
best talent in the industry in 2007 we revamped our graduate
training programme for cost consultants aimed at cognate and
noncognate graduates building on the success of the previous
apc programme we have recruited learning and development
professionals to further enhance the graduate experience
furthermore our international opportunities have enabled us 
to secure exciting opportunities for our younger members as 
well as our more senior staff to relocate either short or longterm
on worldclass projects 
our priority is to continue to attract significant overseas work
through our reputation in our key international sectors including
retail led mixed use transport and commercial 
in the uk we will redeploy our resources into markets which are
buoyant and we will work closely with our clients to ensure that 
we are continuously delivering above our clients’ expectations
23
01 02 03
01 titanic quarter belfast
this mixed use city quarter will provide major new employment opportunities
residential accommodation learning centres heritage leisure and cultural facilities
cyril sweett was appointed as cost consultant and cdm coordinator for this signature
building the site is centred upon the former shipbuilding lands from which liners
such as titanic olympic and canberra were launched
02 king’s mill hospital england 
cyril sweett was appointed by the sherwood forest nhs trust to provide capital and
whole life technical advisor services for the redevelopment of kings mill hospital and
mansfield community hospital the £320m pfi scheme incorporating the biggest
greenfriendly scheme in europe
03 thameslink london
the thameslink programme comprises the major redevelopment and capacity
upgrade of the north and south route through central london although there are
significant works throughout central london there are three main central london
stations blackfriars farringdon london bridge cyril sweett has undertaken cost
planning of all elements as part of a continuous engagement ongoing since 2003 to
the present day “in all of our services we will
continue to serve markets
that are robustly diversified
across the public and private
sector but all relate back 
to the management and
development of assets and
property”
specialist services and
management consultancy
24 cyril sweett group plc
annual report and accounts 2008
business review
08
07
06
£9143m 
£6766m
£6531m
revenue growth 
35
services provid ed
 best practice advice
 building surveying
 business case consultancy
 business improvement advice
 capital allowancesproperty tax
 dispute resolution
 due diligence
 facilities management consultancy
 health and safety consultancy
 project monitoring
 industry research
 legal and contract support
 ppppfi consultancy
 ppppfi facilitation and investment
 project analysis
 portfolio appraisals
 property portfolio advice
 risk advice
 service and space planning
 strategic procurement advice
 sustainability advice
 value management cyril sweett group plc
annual report and accounts 2008
business review
25

contribution to group strategy
the specialist services and management consultancy group
delivers a broad range of services all focused on enhancing the
performance of our client base this may involve improving the
effectiveness of delivery for complex schemes driving property
related business improvement initiatives or advising on the most
efficient way to manage a client’s asset portfolio 
the group comprises four main service areas and major
contributions to the group strategy include
1 management consultancy – undertaking a quantitative risk
analysis to review financial contingency provisions on the
thameslink 2000 project securing a position on the ogc buying
solutions technical assurance framework researching the cost
implications of seeking higher standards of environmental
performance in housing developments for english partnerships
facilities management advice to southwark council in the 
renegotiation of their leisure fm supply arrangements pfi due
diligence for a number of major asset portfolio acquisitions
advising carbon trust on the effectiveness of tax based related
fiscal incentives to encourage the development of low carbon
homes and expert witness delay analysis for the state of guernsey
2 environmentalsustainability – recent key projects have
included framework advisor to wrap for the development of
waste management software training and advocacy work dtz
kenmore property group – providing sustainability advice to the
uk’s first ‘green property fund’ to forecast future legislative change
across europe evaluate the implications of this on commercial
property types and provide specifications for the sourcing and
acquisition of fund commercial properties and project
sustainability advisors for british land on a range of projects
including ropemaker place in london a new landmark building in
birmingham city centre and meadowhall in sheffield where the
team is determining key sustainability priorities for each scheme
and cost effective delivery solutions
3 building surveying – key projects include condition surveys on
11 stores in the south east for asda condition surveys in wiltshire
for the ministry of defence carrying out separation works and
various refurbishment works of banks across the country for rbs
and party wall agreements in london for network rail
4 safety health and environmental consultancy – recent key
projects have included health and safety management
consultancy to bouygues uk provision of a seconded safety
management team for ubs and tate modern cdm coordinator 
performance and kpis
the business successfully managed to crosssell specialist and
management consultancy services to existing clients and have
seen a 35 uplift over the last year 
priorities
in all of our services we will continue to serve markets that are
robustly diversified across the public and private sector but all
relate back to the management and development of assets and
property this connection is critical in the forward strategy of the
group and in maintaining that symbiotic relationship with the
workload and client base of the core business 
looking forward the group has an exciting agenda aimed at
developing the scope and breadth of services offered as well as
maximising the benefits of the acquisitions being made by the
business to access a wider client base 
global knowhow commitment to delivering service excellence
specialist services and 
management consultancy
25
01 department of communities and local government regulatory
impact assessment england 
cyril sweett was commissioned by the department of communities and local
government dclg to undertake a regulatory impact assessment evaluating the
costs and benefits of the government’s proposals to reduce the carbon footprint of
newhousing development including analysis of variant options for the proposed move
to zero carbon housing in 2016 
02 transforming tate modern london
cyril sweett has been appointed to act as the cdm coordinator for a major project to
transform the tate modern into the world’s first museum celebrating the breadth of
21st century contemporary art the landmark 11storey development will feature ten
new art galleries innovative performance spaces inside disused oil tanks 360 degree
landscaped gardens retail outlets cafes bars and restaurants 
03 transport for scotland scotland
cyril sweett is working on a commission providing programme management services
to deliver a portfolio of rail tram and station projects across central scotland
programme management services comprising project management support
planning cost management risk and value services stakeholder management
project controls and reporting services on a portfolio of nine major transport projects
all at different stages schemes include a tram scheme two major station
redevelopments and six rail projects
01 02 03
day south view © herzog  de meuron record year
the year to 31 march 2008 was another record year for cyril sweett
group revenue increased by 20 to £627m which represented
entirely organic growth growth in uk project revenues was 14
and growth in overseas project revenues was 79 profit before 
tax increased by 28 to £59m and net assets increased by 89
to £266m
cash flow from operations increased by 65 to £40m 
£45m when adjusted for contributions to fund the pension
scheme deficit the group’s improved cash position reflects not
only the funds raised on flotation but also a significant improvement
in the management of working capital throughout the year 
at the time of writing the group order book including newly
acquired businesses stood at approximately £86m compared with
£61m at the same time in 2007 approximately onethird of this
order book is represented by overseas projects
key events
 on 31 october 2007 we successfully floated on aim placing
23911545 ordinary 10p shares at 110p per share and raising
funds of £84m net of expenses for the group providing the
capital base with which to commence our acquisition strategy
 with effect from 31 december 2007 we gained full control of 
the remaining 50 of our former joint venture cyril sweett
international limited formerly jones sweett international
limited which operates primarily in the united arab emirates
underlying profit margins
the gross profit margin was maintained at 36 the operating profit
margin increased from 91 to 93 and the profit before tax
margin increased from 88 to 93
tax
the effective tax rate was 309 we are recognising for the first
time a deferred tax asset in relation to the potential corporation tax
relief that may arise on the future exercise of existing share options
at the year end based on the share price at the year end this
amounted to £06m
financial review
26 cyril sweett group plc
annual report and accounts 2008
business review
“cyril sweett has continued
its successful financial
progress during the year 
to 31 march 2008”
mike kemsley chief financial officer
profit before tax 28
dividend paid 11
contracted order book till 2013 41
08
07
06
05
£59m
£42m
£46m
£35m
08
07
06
05
£139m
£103m
£125m
£074m
08
07
£860m
£610m 27
earnings per share
basic earnings per share increased by 12 to 83p 2007 74p and
fully diluted earnings per share increased by 8 to 78p 2007
72p earnings per share are calculated by adding back shares
held by employee trusts to the weighted average number of shares
balance sheet
the group ended the year with
 cash and cash equivalents less financial liabilities net funds
of £58m which compared with net debt of £32m as at 31
march 2007 and
 net assets of £266m which compared with net assets 
of £141m as at 31 march 2007
we continue to invest in fixed assets 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
costs directly relating to the issue of new shares on admission
to aim have been offset against the share premium reserve
other related costs have been charged to the income statement
banking facilities
the group funds its activities through cash generated from
operations and supplemented where necessary and appropriate
with bank borrowings and finance leases
following the flotation the group markettested its banking
facilities changed provider from the royal bank of scotland plc 
to bank of scotland plc and repaid existing debt with the former
leading to a lapse of the related security bank of scotland plc
provides cyril sweett with overdraft and revolving credit facilities
asset finance and insurance premium funding as well as a letter 
of credit facility in relation to the ongoing equity obligations of the
group’s ppp investment projects
at 31 march 2008 the amount undrawn under the group’s credit
and guarantee lines was £146m 2007 £09m
international financial reporting standards
the annual report for the year to 31 march 2008 are the 
group’s first audited financial statements to be published under
international financial reporting standards as adopted by the 
eu ifrs and the comparative figures for the year to 31 march
2007 have been restated under ifrs
note 34 to the financial statements provides a more detailed
explanation of the transition to ifrs but a summary of the key
elements of the restatement is setout below our reporting 
is fully ifrs compliant no further impact is expected from the
transition and all our policies are consistent with those presented
in the aim admission document
2007
profit on ordinary activities before tax £’000
previously reported under uk gaap 4500
adjustment – employee benefits 23
adjustment – share of joint venture profits 84
restated under ifrs 4561
dividends
an interim dividend for the year to 31 march 2008 of 08p per share
was paid on 7 january 2008 to all shareholders on the register 
as at 7 december 2007 the directors are recommending a final
dividend of 16p per share which if approved by the shareholders 
at the agm will be paid on 18 august 2008 to all shareholders on
the register as at 11 july 2008 the final dividend will be accounted
for when approved
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 periodically payments are
made by cyril sweett to the ebt to reimburse the ebt for awarding
shares or transferring shares to employees at less than cost on
the exercise of options
financial review
cyril sweett group plc
annual report and accounts 2008
business review
27 28 cyril sweett group plc
annual report and accounts 2008
business review
financial review 
continued
share incentive plan
the share incentive plan originally launched in february 2001
enables uk resident employees to acquire shares in the group out
of untaxed income and provides a taxefficient means of awarding
shares to employees dividends received by the plan in cash are
used to purchase additional shares on behalf of employees 
free shares may be awarded to qualifying employees based 
on remuneration 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
risk management
risk management involves identifying the principal risks relating 
to the group and its business establishing appropriate controls 
to manage those risks and ensuring that appropriate monitoring
and reporting systems are in place the group’s risk management
process balances cost against risk and is consistent with the
prudent management of a diverse professional organisation
the group is exposed to a wide range of risks inherent in most
parts of our business 
reputational risks
our reputation for being able to deliver large projects relies heavily
on the perception of our clients and how this is portrayed in the
public arena the risk of failure due to poor quality cost advice 
or project management could adversely affect our ability to win
future work we mitigate this risk by ensuring we have robust cost
and project management systems linked to our internal quality
processes which are regularly audited by independent consultants
against industry standards
the board considers reputational risk to be one of the most
significant risks in a professional service organisation awareness
of the importance of the group’s reputation and individual integrity
underpins our business ethics and culture this risk could arise as
a result of other failures in other operational or financial controls
changes in government policy and spending
some of the market sectors in which the group operates are
funded and regulated by government bodies these sectors may 
be affected by changes in uk and overseas governments
government policy spending regulation or procurement practices
there is a risk that a reduction in public sector funding will impact
our operations the group seeks to mitigate this risk by working in
a diverse number of sectors and markets and regularly monitors
public sector spending patterns
retention of key employees
skilled people are our key resource and the recruitment
development and retention of top quality staff are crucial to our
future success failure to do so would constrain the growth of 
the business and prevent the group from achieving its maximum
potential the skills needed are in short supply both in the uk 
and overseas and the group has to compete with a number of 
other organisations to secure the best people
the group has strengthened management effort and resource 
in this area and a summary of our approach during 20072008 
is set out below
 appointed a group human resources director and a new 
head of resourcing to drive forward a more businessfocused
strategy to attract talented professionals improve productivity
through training and development and further align reward 
and recognition with business performance
 developed a competency framework that defines our unique
peopleorientated performance culture against which we can
recruit develop appraise and promote our best people
 established a companywide graduate recruitment and
development scheme to ensure internal succession and 
meet growth targets
 established a masterclass development programme for 
board directors and an accredited management skills 
training programme for middle management
 introduced an internal job opportunities framework aimed 
at developing increased mobility
health safety and the environment
the group’s business is concerned with the built environment 
and this entails significant health safety and environmental risks
should the group’s policy or practice in this area prove inadequate
there is a consequent risk to employees clients contractors and
third parties 29
financial review
the group takes health safety and environmental issues very
seriously and ensures that all employees are appropriately trained
and that procedures are continuously reviewed and improved our
aim is to go further than base legal requirements and proactively
manage issues and identify solutions before problems arise
in all cases of managing the health and safety risks cyril sweett
ensures at all times that its duties are compliant with the
construction design  management regulations 2007 cdm
2007 the group employs a team of fulltime health and safety
consultants with experience of working across various business
sectors whose role it is to act as cdm coordinators and health
and safety consultants on construction projects we also recognise
that our cost consultants and project managers need to fully
understand the requirements of cdm in order to provide a
comprehensive professional service to our clients 
foreign currency risk
the group through its ownership of branches and subsidiaries
based outside the uk has foreign currencydenominated assets
to mitigate the effect of currency exposure arising from net
investments overseas it is the group’s policy to consider hedging
those exposures where material using borrowings denominated 
in foreign currency at 31 march 2008 and 2007 the group had 
no loans denominated in foreign currency 
the group also has transactional currency exposure these
exposures arise from revenues or costs incurred in currencies
other than its branch or subsidiaries’ functional currencies it is the
group’s policy to consider hedging such risk where material using
forward currency contracts at 31 march 2008 and 2007 the group
had no outstanding forward foreign exchange contracts
professional negligence
the group’s business may be subject to claims for professional
negligence the professional services provided by the group involve
risk of contractual and professional errors and omissions and
other liability claims as well as the risk of adverse publicity that
may impact the financial performance and condition this risk
applies to the work carried out by cyril sweett’s own employees
and by the other professional firms and individuals cyril sweett
regularly employs in a subconsultant capacity and for whose work
cyril sweett is contractually liable
in common with other professional advisory businesses the group
has professional liability insurance policies in place however it is
exposed to residual levels of risk on an ongoing basis the board
considers that these insurance policies together with internal
quality management systems and accreditation processes are
adequate to minimise the risk to the group 
business continuity
the group has undertaken a business continuity review and
established disaster recovery procedures however residual risk
exists should the group lose one of its major regional offices due to
fire flood etc such a loss of one of the major offices would cause
significant operational disruption and would have a negative impact
on regional performance
closed defined benefit pension scheme
the defined benefit pension scheme was closed to new members
with effect from 1 january 1999 and the group ceased making
contributions in respect of members’ future service with effect
from 30 june 2003
the group made contributions to its defined benefit pension
scheme during the year totalling £05m 2007 £05m after
charging £01m to the current year income statement and crediting
£06m to reserves in respect of actuarial gains the balance sheet
records neither an asset nor a liability in respect of the scheme at
the year end 2007 £12m liability
the directors recognise that the underlying longevity and
investment risks remain a potential risk to the financial
performance of the group
summary
cyril sweett has continued its successful financial progress during
the year to 31 march 2008 the group’s balance sheet is very strong
and when combined with the skills professionalism and dynamism
of its employees provides an excellent platform for the anticipated
development and transformation of cyril sweett to become a global
service provider of the highest quality
mike kemsley chief financial officer
17 july 2008
cyril sweett group plc
annual report and accounts 2008
business review
29 30 cyril sweett group plc
annual report and accounts 2008
governance
01 francis ives 02 dean webster
06 roger mabey 07 nick woollacott
03 mike kemsley 04 derek pitcher 05 michael henderson
board of directors governance
01 francis ives frics dipprojman
chairman
francis has considerable experience in the
construction industry shortly after joining
the company in 1970 he qualified as a
quantity surveyor in 1972 and as a fellow of
the rics francis has in the past been a
president of the british council of shopping
centres and the vice chairman of the joint
contracts tribunal currently he is a board
member of the british council for offices
francis also chairs the rics contracts
panel and represents the rics on the jct
he has chaired the group for the past 
17 years aged 60
02 dean webster mba bsc mrics mapm 
chief executive officer
in 1980 dean joined the company from
taylor woodrow construction and qualified
as a member of the rics in 1986 before
becoming a member of the association of
project managers between 1995 and 2004
dean was responsible for steering the
company’s project management business
from a team of 35 to 120 people and setting
strategy for the future appointed chief
executive in 2005 dean now drives the
group’s overall strategy and is responsible
for the delivery of mergers and acquisitions
and performance of business operations 
aged 47
03 michael kemsley fca mcmi 
mbifm frsa 
chief financial officer
mike trained with edward moore  sons
and qualified as a chartered accountant in
1980 prior to joining cyril sweett in 1993
he spent ten years in commercial banking
with the first national bank of boston 
and lloyds tsb and three years with 
the chartered surveying practice 
dron  wright 
for over five years he was finance director 
of lloyds tsb commercial finance ltd
formerly boston financial company ltd
today the uk market leader in assetbased
lending mike helped start this business 
in 1983 and sold it to tsb group in 1987 
he was also chief financial officer of 
tsb commercial holdings plc which held
the group’s nonbanking subsidiaries
including noble lowndes swan national
group and wallem group 
as cyril sweett’s chief financial officer
mike is responsible at board level for
investment strategy management and
support services and employee share
schemes aged 53
04 derek pitcher bsc frics dipprojman
executive director
derek joined cyril sweett in 1978 became 
a partner at the age of 30 and managing
director of the quantity surveying division 
in 1996 as executive director he is
responsible for the london and south east
business unit supervising the delivery of 
the business plan for the region and the
performance of the sectors and balanced
scorecard functions
as well as the national operations delivery
process and best practice programme
derek oversees the group’s corporate
social responsibility environmental and
health and safety policies derek is the
honorary treasurer of the bcsc and an
active member of bco design and build
foundation and also the rics procurement
panel aged 48
05 michael henderson fca frsa khs 
nonexecutive director
michael enjoys a long standing reputation
for his expertise and network in industrial
and financial management he was
managing director and chief executive of
cookson group plc a 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 crossthwaite ltd at present
he is also vice chairman of the advisory
board of quexco inc the largest lead
producer in the world michael was
appointed nonexecutive director in 1998
aged 69
06 roger mabey cmg fciob frsa 
nonexecutive director
roger has a wealth of knowledge of
operating in international and uk
construction markets he has 40 years’
experience in the construction and property
industry previously as managing director at
bovis international ltd and as director at
bovis lendlease ltd he is currently vice
chairman for housing solutions ltd a
fellow of the chartered institute of building
and a fellow of the royal society of arts 
roger was appointed nonexecutive
director in 2003 aged 63
07 paul nicholas woollacott bsc hons
physics
nonexecutive director
nicholas is an experienced director of both
listed and unlisted companies as a group
managing director of lattice plc he was
previously a ftse 100 main board director
and as the former senior independent
director and acting chairman of enterprise
plc and now a director of goldshield plc 
he also has extensive experience of working
with aim and smaller companies
following a degree in physics nicholas’s
career has ranged from oil trading 
with shell through leading the first
comprehensive assessment of renewable
energy in britain to developing financing
and running major power and gas
infrastructure projects both in the uk 
and overseas nicholas was appointed
nonexecutive director in 2007 aged 60
31 cyril sweett group plc
annual report and accounts 2008
governance
31 report of the directors
the directors have pleasure in presenting their report and the audited annual financial statements for the year ended 31 march 2008
principal activities
the principal activities of the group 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 18 whollyowned offices in the uk france india ireland spain 
and the uae
business review
details of the group’s performance and activities during the year are contained in the business review section on pages 1 to 29
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
branches outside the uk
the results of the company’s overseas branch in france are included in these financial statements
future developments
an indication of future developments is contained in the business review section on pages 1 to 29
dividends
the directors recommend the payment of a final dividend of 16 pence per share making with the interim dividend of 08 pence per
share a total dividend of 24 pence per share the final dividend of 16 pence per share has not been accounted for in these financial
statements
post balance sheet events
following the year end we reorganised our corporate structure and made three acquisitions all of which are detailed at note 33 to the
annual financial statements the approval of the final recommended dividend of 16 pence per share will be proposed at the forthcoming
annual general meeting
directors and their interests in the shares of the company
the directors who held office during the year were as follows
francis ives andrew hemsley
dean webster michael henderson nonexecutive
michael kemsley roger mabey nonexecutive
derek pitcher nicholas woollacott nonexecutive
jimmi bradbury
jimmi bradbury and andrew hemsley resigned on 30 august 2007 and nicholas woollacott was appointed on 21 november 2007 
details of the directors’ interests in shares in the company appear in the directors’ remuneration report on pages 39 to 41
substantial interests in shares
as at 1 july 2008 the following interests in 3 or more of the company’s ordinary share capital had been notified to the company
number of shares percentage held
cyril sweett trustee company limited 9039483 157
artemis investment management 5355361 93
brewin dolphin limited 2710127 47
invesco 2590910 45
treasury shares
treasury shares included in the annual financial statements comprise cyril sweett group plc ordinary shares held by the cyril 
sweett employee benefit trust and the cyril sweett share incentive plan details of which are included at note 23 to the annual 
financial statements
key performance indicators
details of the group’s key performance indicators can be found in the business review section on pages 1 to 29
32 cyril sweett group plc
annual report and accounts 2008
governance governance
employment policy
as a consultancy business cyril sweett recognises that its employees are its most important assets employees are kept informed of
developments within the group through newsletters and electronic communications regular staff meetings enable their views to be
taken into consideration
the group is an equal opportunity employer and its policy is to ensure that all employees and job applicants will be given equal
opportunity irrespective of their sex race ethnic origin ability 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
environmental 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 our environmental impact fulfils opportunities to enhance the environment
prevents pollution minimises waste controls noise uses materials and resources efficiently and protects wildlife 
the group complies with environmental legislation and environmental codes of practice applicable to the construction industry
corporate social responsibility
at cyril sweett we believe that corporate social responsibility csr is a driver that influences and encompasses all of our business
activities we recognise that csr has a major influence on our economic social and environmental impact we have been working hard
to devise an effective and coherent strategy one that reflects our ambitions of growth and corresponds with the demands of modern
business our csr strategy encompasses four main areas
1 people – looking after and listening to our staff facilitating improvements and encouraging everyone to ‘get involved’ in ensuring that
cyril sweett is an enjoyable and dynamic place to work we adopt the approach of ‘leadership from the top development from the
bottom’ and our senior staff members are proud to recognise and commend employees that have gone beyond their normal job
requirements in order to contribute to wider csr goals
2 environment – analysing our effect on the environment both internally and externally and identifying how to reduce detrimental 
and promote beneficial activities harnessing our expertise with regard to sustainable development and demonstrating to our clients 
its importance and role in their business objectives
3 community – recognising the importance of working with local communities and identifying ways that our skills and knowledge can
be useful to those organisations that do not have the same pool of resources our longterm aim is to develop strong relationships with
individuals and groups from a wide range of backgrounds to assist and learn wherever possible
4 charity – supporting numerous worthwhile causes be it on a local or national scale through fundraising activities knowledge
transfer and education often the venture will be on a groupwide basis yet in addition we also support our individual staff through
matched funding and other forms of sponsorship in situations where they have assigned themselves the task of raising fundsawareness
for a specific charity
health and safety policy
it is group 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 order to achieve the standards required line management will provide suitable and sufficient
resources and properly trained supervision to ensure all work places can carry out their activities in a safe manner 
it is the responsibility of the group’s management at all levels to be conversant with the contents of the policy and to plan work such that
foreseeable risks are identified and reduced to an acceptable level through the implementation of risk assessments
all employees must take care of the health and safety of themselves and actively participate and cooperate with the group to enable the
group 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 as at 31 march 2008
the group had 16 2007 16 days of purchases in trade payables and the company had 18 2007 14 days
risks and uncertainties
details of the risks and uncertainties faced by the group can be found in the financial review on pages 26 to 29
cyril sweett group plc
annual report and accounts 2008
governance
33 treasury
the main risks arising from the group’s financial instruments are foreign currency risk credit risk and liquidity risk our policy is 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 shares borrowings and receivables and payables
arising from normal trading activities banking facilities are negotiated to provide working capital and acquisition finance to meet
current and future requirements
it is the group’s policy that no speculative trading in financial instruments shall be undertaken the board reviews and agrees policies
for managing each of these risks and they are summarised below
foreign currency risk
most of our 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 this risk having regard to all the 
relevant circumstances
credit risk
the group has no significant concentration of credit risk this risk is managed by implementing appropriate credit control procedures
in the conduct of its business
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 periodic invoicing on longterm contracts and existing banking facilities
interest risk
the group has no material exposure to interest rate risk as it has no borrowings other than finance lease commitments and shortterm
bank loans at fixed interest rates
capital risk
the group’s objectives when managing capital are to safeguard the group’s 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 longterm cost
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
corporate governance
a report on the group’s corporate governance compliance is set in the corporate governance section of this annual report
donations
during the year the group made no political contributions 2007 £nil but made various charitable contributions totalling £11402
2007 £11177 details of which are as follows
2008 2007
£ £
children’s charities 1000 544
charities aid foundation 7000 9000
other nonregistered charities 2555 950
donations of £100 or less 19 2007 17 847 683
11402 11177
disclosure of information to auditors
in the case of each of the persons who are directors at the time when the report is approved the following applies

so far as the directors are aware there is no relevant audit information of which the companys auditors are unaware and 
 they have taken all the steps that he ought to have been taken as directors in order to make themselves aware of any relevant audit
information and to establish that the companys auditors are aware of that information
auditors
pricewaterhousecoopers llp were appointed as auditors during the year and have indicated their willingness to continue in office and
a resolution that they be reappointed will be proposed at the annual general meeting
by order of the board
james murray company secretary
17 july 2008
report of the directors
continued
34 cyril sweett group plc
annual report and accounts 2008
governance statement of directors’ responsibilities in respect of the
annual report and the financial statements
governance
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 elected 
to prepare the group and parent company financial statements in accordance with international financial reporting standards 
ifrss as adopted by the european union and as regards the group financial statements article 4 of the ias regulations the financial
statements are required by law to give a true and fair view of the state of affairs of the company and the group and of the profit or loss 
of the group for that period
in preparing those financial statements the directors are required to
 select suitable accounting policies and then apply them consistently

make judgements and estimates that are reasonable and prudent
 state that the financial statements comply with ifrss as adopted by the european union
 prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue 
in business in which case there should be supporting assumptions or qualifications as necessary 
the directors confirm that they have complied with the above requirements in preparing the financial statements
the directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial
position of the company and the group and to enable them to ensure that the financial statements comply with the companies act 1985
and as regards the group financial statements article 4 of the ias regulation 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 and legislation in the united kingdom
governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions 
by order of the board
james murray company secretary
17 july 2008 
cyril sweett group plc
annual report and accounts 2008
governance
35 whilst the group is not required to comply under combined code 2006 the group 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 the policy of the board is to manage the affairs of the group in accordance with the principles of corporate governance contained
in the combined code of corporate governance in so far as is practicable for a company of its size
the board of directors
the board comprises four executive directors and three nonexecutive directors its 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 groups 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 mix of skills and business experience of the nonexecutive directors is a major contribution to the proper functioning of the board
ensuring matters are debated and that no individual or group dominates the board decisionmaking process 
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 organisation structure or management structure and 
 dividend policy
the board is assisted by certain committees and a description of the specific responsibilities which have been delegated to them is set
out below
audit committee
the company has established an audit committee comprised of the nonexecutive directors the audit committee meets not less than
three times per year and is responsible for making recommendations to the board on the appointment of the auditors and the audit fee
reviewing the conduct and control of the annual audit and reviewing the operation of the internal financial control environment it also
has responsibility for the reporting of the financial performance of the group and for reviewing financial statements prior to publication
remuneration committee
the company has established a remuneration committee currently comprised of the nonexecutive directors 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 remuneration committee also determines the allocation of share options to
employees it is a rule of the remuneration committee that a director shall not participate in discussions or decisions concerning
hisher own remuneration
the group has adopted the model code for directors’ dealings as set out in the listing rules of the uk listing authority and as
applicable to aim companies and will take all reasonable steps to ensure compliance by directors and relevant employees
nominations committee
the company has established a nominations committee comprising one executive director the nonexecutive directors and the
chairman of the company the nominations committee will meet at least twice a year and is responsible for reviewing the board
structure size and composition making recommendations to the board with regard to any adjustments that are deemed necessary 
and identifying candidates for the approval of the board to fill board places as and when they arise
corporate governance
36 cyril sweett group plc
annual report and accounts 2008
governance approval and allotment committee
the company has established an approval and allotment committee comprising the executive directors and the company secretary 
the approval and allotment committee will meet as and when required and will be responsible for approving matters relating to the
interim and final accounts process the entry into contracts acquisitions and disposals the entry into parent company guarantees and
treasury related contracts and the allotment of shares pursuant to the company’s employee share schemes 
board processes
the company secretary supports the chairman in ensuring new directors receive appropriate training upon flotation of the company on
aim the board had already been in place for a number of years following the flotation the board together with directors of subsidiary
companies received formal training provided by the institute of chartered secretaries and administrators the board is developing a
formal programme which will ensure new directors as well as existing directors receive appropriate training particularly in the areas 
of legal regulatory and accounting developments this will include an induction pack which incorporates background information 
about cyril sweett and its directors and details of board procedures directors responsibilities and various governancerelated issues
further training is provided as and when necessary and may be identified as part of the annual evaluation process
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 ensuring that
board procedures and applicable rules and regulations are followed the company secretary in consultation with the chairman
ensures that the information presented to the board is not only timely but of sufficient quality to enable members to make an 
informed decision
there were eight full board and six other board meetings during the financial year  the table below details the attendance by directors 
at board meetings during the year
attendance
executive
francis ives 11
dean webster 13
michael kemsley 14
derek pitcher 13
jimmi bradbury resigned on 30 august 2007 3
andrew hemsley resigned on 30 august 2007 3
nonexecutive
michael henderson 7
roger mabey 8
nicholas woollacott appointed on 21 november 2007 2
in addition there were two meetings of the audit committee with full attendance
following the admission to aim all directors are submitted for reelection at regular intervals of not more than three years at the annual
general meeting subject to continued satisfactory performance the nonexecutive directors will be submitted for reelection at the
forthcoming agm
board performance and evaluation
the board is committed to evaluating its own performance the board is currently finalising a formal annual evaluation programme 
for its own performance and that of its committees and individual directors the evaluation process will be used constructively as a
mechanism to improve board effectiveness maximise strengths and tackle weaknesses
internal audit
the audit committee has approved the development of an internal audit function and proposals are currently being considered for the
development of an implementation plan
nonexecutive directors
the nonexecutive directors are appointed by the board on the recommendation of the nomination committee for specified terms 
they are subject to periodic reappointment by shareholders and statutory provisions regarding removal
governance
cyril sweett group plc
annual report and accounts 2008
governance
37 all three nonexecutive directors have significant external commercial experience and bring expert advice and strong judgement to the
board the board believes that the nonexecutive directors are independent of management and have no business or other relationships
which could materially interfere with the exercise of their independent judgement the board believes that the relatively low value of
shares held by nonexecutive directors does not impair their independence
the roles of the chairman and chief executive are separate and clearly defined
the remuneration of the nonexecutive directors is detailed in the directors’ remuneration report
internal control and risk management
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 the framework of risk management and internal control
operating within the group has been in place throughout the year and is designed to safeguard shareholders’ investments and the
group’s assets whilst ensuring that proper accounting records are maintained this framework is reviewed annually
it is the responsibility of 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 eliminate it and that any system of internal control can only
provide reasonable not absolute assurance against material misstatement or loss
the risk management of joint ventures and strategic partnerships is agreed between the parties and periodic reviews carried out where
appropriate
the group annually reviews the effectiveness of the risk management system and its internal controls
relations with shareholders
the board is committed to a continuing dialogue with its shareholders following the announcement and presentation of the interim and
year end results there is a series of formal meetings with institutional shareholders 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 group’s investor relations section on its website contains information on the group’s financial results and its stock exchange
announcements additionally the agm provides a useful interface with shareholders all shareholders are invited to attend the agm 
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
corporate governance
continued
38 cyril sweett group plc
annual report and accounts 2008
governance the group is not required to prepare a full remuneration report
remuneration committee
the remuneration committee comprises the nonexecutive directors of the company and is chaired by michael henderson
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
the group currently operates a discretionary noncontractual profit sharing scheme in which the executive directors participate a more
formal bonus scheme is being developed under which bonuses earned will be linked to agreed key performance indicators
the cyril sweett 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
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 board and the level of remuneration reflects the time commitment
and responsibilities of their roles
service contracts
details of the directors’ service agreement are set out below
notice period notice period
directors date of agreement by company by director
executives
francis ives 31 october 2007 12 months 12 months
dean webster 31 october 2007 12 months 12 months
michael kemsley 31 october 2007 12 months 12 months
derek pitcher 31 october 2007 12 months 12 months
nonexecutives
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
governance
directors’ remuneration report
unaudited information
cyril sweett group plc
annual report and accounts 2008
governance
39 directors’ emoluments
gain on 
exercise
bonus pension other of share total total
salaryfees scheme contributions benefits options 2008 2007
directors £’000 £’000 £’000 £’000 £’000 £’000 £’000
executives
francis ives 158 25 12 27 52 274 240
dean webster 149 25 6 10 – 190 188
michael kemsley 100 20 10 10 – 140 140
derek pitcher 136 25 10 16 – 187 189
jimmi bradbury 
resigned on 30 august 2007 41–24– 47 132
andrew hemsley 
resigned on 30 august 2007 48–25 76 131 156
nonexecutives
michael henderson 29–––– 29 27
roger mabey 33–––– 33 32
nicholas woollacott 
appointed on 21 november 2007 13–––– 13 –
 emoluments in respect of the period during which they served as directors
directors’ share options
exercise number of number of
earliest price shares at shares at
date of exercise expiry pence 31 march granted exercised lapsed 31 march
director grant date date per share 2007 in the year in the year in the year 2008
francis ives 20112000 20112003 20112010 136 100000––– 100000
06102003 06102006 06102013 208 216346 – 216346 – –
28112005 28112008 28112015 335 59701––– 59701
dean webster 28112005 28112008 28112015 335 59701––– 59701
31102007 31102010 31102017 1100 – 100000 – – 100000
mike kemsley 28112005 28112008 28112015 335 59701––– 59701
31102007 31102010 31102017 1100 – 75000 – – 75000
derek pitcher 20112000 20112003 20112010 136 75000––– 75000
06102003 06102006 06102013 208 216346––– 216346
28112005 28112008 28112015 335 59701––– 59701
31102007 31102010 31102017 1100 – 75000 – – 75000
andrew hemsley 20112000 20112003 20112010 136 75000 – 75000 – –
06102003 06102006 06102013 208 216346 – 216346 – –
28112005 28112008 28112015 335 59701 – – 59701 –
jimmi bradbury 21092001 21092004 21092011 159 157233––– 157233
06102003 06102006 06102013 208 48077––– 48077
28112005 28112008 28112015 335 59701––– 59701
31102007 31102010 31102017 1100 – 50000 – – 50000
 or date of resignation if earlier 
none of the terms and conditions of the share options were varied during the year  all options were granted in respect of 
qualifying services
the market price of the companys shares at the end of the financial year was 955p and the range of market prices during the year 
was between 427p and 1235p
the market price when mr f r ives exercised his share options was 45p
directors’ remuneration report
continued
40 cyril sweett group plc
annual report and accounts 2008
governance directors’ interest in shares
the interests of the directors including their spouses’ interests in the shares of the company at 31 march 2008 were as follows
at 31 march 2008 at 31 march 2007
directors ordinary shares ‘a’ shares ‘b’ shares
francis ives 2659534 2205890 1372000
dean webster 851858 1296559 –
michael kemsley 1012218 1489437 –
derek pitcher 1435030 1995832 –
michael henderson 210350 291115 –
roger mabey 209872 294644 –
andrew hemsley – 1440984 –
jimmi bradbury – 1152508 –
 on 18 june 2007 pursuant to resolutions passed by the shareholders of the company all of the issued and unissued ‘a’ ordinary shares
of 10p each and ‘b’ ordinary shares of 10p each in the capital of the company were redesignated as ordinary shares of 10p each
further information on the capital reorganisation is given in note 21 of the annual financial statements
pensions
f r ives is a deferred member of the final salary pension scheme and as such no benefits accrue to him other than the annual cost of
living increase none of the other directors are members of the scheme
this report has been approved by the board and has been signed on behalf of the board by
michael henderson chairman of the remuneration committee
17 july 2008 
governance
cyril sweett group plc
annual report and accounts 2008
governance
41 independent auditors’ report to the members 
of cyril sweett group plc 
we have audited the group and parent company financial statements the ‘financial statements’ of cyril sweett group plc for the
year ended 31 march 2008 which comprise the consolidated income statement the consolidated and company balance sheets the
consolidated and company cash flow statement the consolidated and company statement of recognised income and expense and
the related notes these financial statements have been prepared under the accounting policies set out therein
respective responsibilities of directors and auditors
the directors’ responsibilities for preparing the annual report and the financial statements in accordance with applicable law and
international financial reporting standards ifrss as adopted by the european union are set out in the statement of directors’
responsibilities
our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and international
standards on auditing uk and ireland this report including the opinion has been prepared for and only for the company’s members
as a body in accordance with section 235 of the companies act 1985 and for no other purpose we do not in giving this opinion 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
we report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in
accordance with the companies act 1985 we also report to you whether in our opinion the information given in the report of the
directors is consistent with the financial statements the information given in the report of the directors includes that specific
information presented in the business review section
in addition we report to you if in our opinion the company has not kept proper accounting records if we have not received all the
information and explanations we require for our audit or if information specified by law regarding directors’ remuneration and other
transactions is not disclosed
we read other information contained in the annual report and consider whether it is consistent with the audited financial statements
the other information comprises only the report of the directors the business review the board of directors statement of directors’
responsibilities directors’ remuneration report and the corporate governance statement we consider the implications for our report if
we become aware of any apparent misstatements or material inconsistencies with the financial statements our responsibilities do not
extend to any other information
42 cyril sweett group plc
annual report and accounts 2008
governance basis of audit opinion
we conducted our audit in accordance with international standards on auditing uk and ireland issued by the auditing practices board
an audit includes examination on a test basis of evidence relevant to the amounts and disclosures in the financial statements it also
includes an assessment of the significant estimates and judgements made by the directors in the preparation of the financial
statements and of whether the accounting policies are appropriate to the group’s and company’s circumstances consistently applied
and adequately disclosed
we planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to
provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement
whether caused by fraud or other irregularity or error  in forming our opinion we also evaluated the overall adequacy of the presentation
of information in the financial statements
opinion
in our opinion
 the group financial statements give a true and fair view in accordance with ifrss as adopted by the european union of the state of the
group’s affairs as at 31 march 2008 and of its profit and cash flows for the year then ended

the parent company financial statements give a true and fair view in accordance with ifrss as adopted by the european union as
applied in accordance with the provisions of the companies act 1985 of the state of the parent company’s affairs as at 31 march 2008
and cash flows for the year then ended

the financial statements have been properly prepared in accordance with the companies act 1985 and

the information given in the report of the directors is consistent with the financial statements
pricewaterhousecoopers llp
chartered accountants and registered auditors
london
17 july 2008 
governance
cyril sweett group plc
annual report and accounts 2008
governance
43 2008 2007
notes £’000 £’000
revenue 3 62705 52061
cost of sales 40394 33287
gross profit 22311 18774
administrative expenses 16501 14038 
operating profit 5810 4736
finance income 4 222 58
finance expense 4 173 322
net finance incomeexpense 49 264
share of profit of joint venture – 4
profit on sale of investment in associate – 85 
profit before taxation 5 5859 4561
taxation 7 1809 1370
profit for the year 4050 3191
profit attributable to
equity shareholders of the parent 4050 3191
basic earnings per share pence 9 83 74
diluted earnings per share pence 9 78 72
the notes on pages 49 to 91 are an integral part of these financial statements
the company has elected to take the exemption under section 230 of the companies act 1985 to not present the company’s 
income statement
the profit of the company for the year was £3663995 2007 £2394684 
consolidated income statement 
for the year ended 31 march
44 cyril sweett group plc
annual report and accounts 2008
financial statements 2008 2007
group company group company
notes £’000 £’000 £’000 £’000
foreign exchange translation difference 25 280 2 5–
availableforsale investments
valuation gains taken to equity 25 –– 600 –
deferred tax on valuation gain 25 –– 180 –
adjustment to change in tax rates 25 12 – ––
actuarial gainloss on pension scheme 25 651 651 60 60
deferred tax on actuarial gainloss 25 182 182 18 18
net incomeexpense recognised directly in equity 761 467 383 42
profit for the year 4050 3664 3191 2395
total recognised income for the year 4811 4131 3574 2353
attributable to
equity shareholders 4811 4131 3574 2353
cumulative actuarial gainslosses for the group and the company recognised through the statement of recognised income and expense
are £582000 gain 2007 £69000 loss
financial statements
statement of recognised income and expense
for the year ended 31 march 
cyril sweett group plc
annual report and accounts 2008
financial statements
45 2008 2007
notes £’000 £’000
noncurrent assets
intangible assets 10 3674 3258
property plant and equipment 11 1279 1241
financial assets 12 941 904
investment accounted for using the equity method 13 – 220
deferred income tax asset 15 769 435
total noncurrent assets 6663 6058
current assets
trade and other receivables 16 24438 21731
cash and cash equivalents 17 6730 1221
total current assets 31168 22952
current liabilities 
financial liabilities 18 793 3960
trade and other payables 19 9368 8819
current income tax liabilities 805 460
total current liabilities 10966 13239
net current assets 20202 9713
total assets less current liabilities 26865 15771
noncurrent liabilities
financial liabilities 18 96 481
deferred income tax liability 15 168 –
retirement benefit obligations 20 – 1211
total noncurrent liabilities 264 1692
net assets 26601 14079
equity
share capital 21 5534 4451
share premium 22 9987 1923
treasury shares 23 341 354
share option reserve 24 615 154
retained earnings 25 10806 7905
total equity shareholders’ funds 25 26601 14079
the notes on pages 49 to 91 are an integral part of these financial statements
the financial statements were authorised for issue by the board of directors on 17 july 2008 and were signed on its behalf by 
d l webster m kemsley 
consolidated balance sheet
as at 31 march
46 cyril sweett group plc
annual report and accounts 2008
financial statements 2008 2007
notes £’000 £’000
noncurrent assets
intangible assets 10 3055 2965
property plant and equipment 11 1145 1175
financial assets 12 1402 1298
deferred income tax asset 15 769 615
total noncurrent assets 6371 6053
current assets
trade and other receivables 16 23131 19774
cash and cash equivalents 17 5101 256
total current assets 28232 20030
current liabilities 
financial liabilities 18 788 3907
trade and other payables 19 8818 7661
current income tax liabilities 509 263
total current liabilities 10115 11831
net current assets 18117 8199
total assets less current liabilities 24488 14252
noncurrent liabilities
financial liabilities 18 86 481
retirement benefit obligations 20 – 1211
total noncurrent liabilities 86 1692
net assets 24402 12560
equity
share capital 21 5534 4451
share premium 22 9987 1923
treasury shares 23 341 354
share option reserve 24 615 154
retained earnings 25 8607 6386
total equity shareholders’ funds 25 24402 12560
the notes on pages 49 to 91 are an integral part of these financial statements
the financial statements were authorised for issue by the board of directors on 17 july 2008 and were signed on its behalf by 
d l webster m kemsley 
financial statements
company balance sheet
as at 31 march
cyril sweett group plc
annual report and accounts 2008
financial statements
47 2008 2007
group company group company
notes £’000 £’000 £’000 £’000
cash flows from operating activities
cash flows from operations 27 3993 3412 2415 2319
interest paid 178 177 322 321
income taxes paid 1341 1345 1544 1521
net cash generated from operating activities 2474 1890 549 477
cash flows from investing activities
interest received 210 144 58 9
proceeds on disposal of investment in associate –– 125 125
proceeds on disposal of property plant and equipment 33 88
purchase of property plant and equipment 628 550 230 197
purchase of computer software 203 203 98 98
increase in financial assets 12 37 – 68 –
decrease in treasury shares 13 13 141 141
acquisition of subsidiary net of cash acquired 26 68 104 173 115
net cash used in investing activities 574 697 237 127
cash flows from financing activities
dividends paid 8 1390 1390 1253 1253
repayments of borrowings 1772 1772 2026 2026
repayments of obligations under finance leases 262 262 406 406
proceeds on issue of ordinary shares 25 10715 10715 229 229
issue costs 25 1568 1568 ––
purchase of own shares in satisfaction of share options 25 595 595 ––
new bank loans raised 786 786 1423 1423
net cash generated fromused in financing activities 5914 5914 2033 2033
net increasedecrease in cash and cash equivalents 7814 7107 1719 1683
cash and cash equivalents at beginning of year 1084 2006 635 323
cash and cash equivalents at end of year 17 6730 5101 1084 2006
cash flow statement
for the year ended 31 march
48 cyril sweett group plc
annual report and accounts 2008
financial statements 1 general information
cyril sweett group plc formerly cyril sweett limited is a company incorporated and domiciled in the united kingdom under the
companies act 1985 the address of the registered office is 60 grays inn road london wc1x 8aq the principal activities of the group
and the company include the provision of construction cost consultancy project management and other specialised consultancy
services including building surveying 
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 all years presented unless otherwise stated
basis of preparation – group
in connection with the companys application for aim admission the company has prepared and presented in its admission document
the last three years consolidated historical financial information in a form consistent with the accounting policies to be adopted in the
groups 2008 consolidated financial statements accordingly the directors of the company prepared information for the group at the
transition date of 1 april 2004 and for each of the years ended 31 march 2005 2006 and 2007 on the basis expected to be applicable 
in so far as was then currently known for the financial statements to be prepared for the year ended 31 march 2008 except where
otherwise required or permitted by ifrs 1 firsttime adoption of international financial reporting standards
cyril sweett group plc now prepares its consolidated and company financial statements in accordance with international financial
reporting standards as adopted for use in the european union ‘eu’ ifrs the group and company financial statements have been
prepared in accordance with those parts of the companies act 1985 that are applicable to companies adopting ifrs and comply with
article 4 of the eu ias legislation
transition to ifrs – company
the company’s transition date is 1 april 2005 the company prepared its opening ifrs balance sheet at that date and the company’s
ifrs adoption date was 1 april 2006 the company applied ifrs 1 in preparing the financial statements and full details of the application
of ifrs can be found at note 34
the preparation of financial statements in conformity with ifrs requires the use of judgements estimates and assumptions that affect
the reported amounts of assets liabilities income and expenses the estimates and associated assumptions are based on historical
experience and various other factors that are believed to be reasonable under the circumstances the results of which form the basis of
making judgements about carrying values of assets and liabilities that are not readily apparent from other sources actual results may
differ from these estimates the estimates and underlying assumptions are reviewed on an ongoing basis and revisions are recognised
in the period in which the estimate or assumption is revised the key areas where estimates have been used and assumptions applied
are in impairment testing of goodwill deferred taxation assessing the outcome of projects and recoverability of work in progress and 
in assessing the defined benefit pension scheme liabilities see notes 10 15 16 and 20 respectively the financial statements are
presented in sterling to the nearest thousand £’000
consolidation
the consolidated financial statements incorporate the results of cyril sweett group plc and all of its subsidiary undertakings made up 
to 31 march 2008 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 which are included from the date of acquisition which is
defined as the date when control passes
financial statements
notes to the financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
49 2 significant accounting policies continued
basis of consolidation
acquisition of subsidiaries and businesses are accounted for under the purchase method on acquisition the identifiable assets
including intangible assets liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of
acquisition 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 the interest of minority shareholders is stated at the
minority’s proportion of the fair values of the assets and liabilities recognised
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
associates
an associate is an entity over which the group is in a position to exercise significant influence but not control or jointly control through
participation in the financial and operating policy decisions of that entity investments in associates are accounted for using the equity
method of accounting investments in associates are initially recognised at cost the group’s investment in associates includes goodwill
identified at acquisition net of any accumulated impairment loss under this method the company’s share of the postacquisition profits
or losses of associates is recognised in the income statement and its share of post acquisition movements in reserves is recognised in
reserves the cumulative postacquisition movements are adjusted against the cost of the investment
in the company associates are accounted for at cost less any provision for impairment
joint venture
a joint venture is an entity in which the group holds a longterm investment which is jointly controlled by the group and one or more
other ventures under a contractual arrangement the results of joint ventures are consolidated using the equity accounting method
segmental reporting
a segment is a distinguishable component of the group that is engaged in providing services and has a different risk and reward profile
as the risks and rates of return are unaffected by differences in respect of these services the primary format for reporting segment
information is based on geographical location
foreign currency translation
transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing on the dates of the transactions
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 translation differences on nonmonetary items carried at fair value are reported as part of the fair
value gain or loss gains and losses arising on retranslation are included in the income statement
the consolidated financial information is presented in 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 exchange differences arising
thereon are taken to shareholders’ equity
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 on the date of acquisition exchange differences are taken to reserves
notes to the financial statements
continued
50 cyril sweett group plc
annual report and accounts 2008
financial statements 2 significant accounting policies continued
revenue recognition
revenue is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods and
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
where the outcome of a contract can be estimated reliably revenue and costs are recognised by reference to the stage of completion 
of the contract activity at the balance sheet date this is normally measured by surveys of work performed to date variations in contract
work claims and incentive payments are included to the extent that it is probable that they will result in revenue and they are capable of
being reliably measured where any longterm project is substantially incomplete it is normal in terms of the relevant accounting
standards and prudence in general to restrict any profit recognition by valuing the related work in progress at the lower of cost and net
realisable value recognising the low risks attaching to cyril sweett’s feebased business but with due regard to market conditions 
and outturns on recentlycompleted contracts all substantially incomplete contracts and all contracts in excess of that figure at each
valuation date showing thin margins on projected outturns will be critically reviewed and the profit restricted to the lower of cost and
net realisable value if considered necessary any forecast loss will in any event be recognised immediately
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 this is generally presumed to be when preferred bidder status is awarded until this
status is reached all such costs are expensed to the income statement in the period in which they are incurred 
timebased contracts
revenue on timebased products is recognised in line with labour hours delivered
interest
interest income is recognised on a timeproportion basis using the effective interest method
dividend
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 or associate at the date of acquisition each acquisition is treated as a separate 
cashgenerating unit
goodwill is subject to an annual impairment review any impairment is recognised immediately in the income statement and is not
subsequently reversed on disposal of a subsidiary or associate the attributable amount of goodwill is included in the determination of
the profit or loss on disposal 
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 three years
costs associated with developing or maintaining computer software programmes are recognised as an expense as incurred costs that
are directly associated with identifiable and unique software products controlled by the group and which are expected to generate
economic benefits exceeding costs beyond one year are recognised as intangible assets and amortised over their estimated useful lives
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
51 2 significant accounting policies continued
property plant and equipment
property plant and equipment 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 the cost of assets less residual value on a straightline basis over their expected useful lives
the rates of depreciation used for the assets are as follows
fixtures and fittings 20 – straight line
computer hardware 333–50 – straight line
assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or where shorter
over the term of the relevant lease
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 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 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 for the purposes of assessing impairment assets are grouped at the
lowest levels for which there are separately identifiable cash flows cashgenerating units
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
financial assets
financial assets are classified as ‘availableforsale’ financial assets and ‘loans and receivables’ availableforsale financial assets are
recorded at fair value less transaction costs gains and losses arising from changes in fair value are recognised directly in equity 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 availableforsale 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 the income statement
notes to the financial statements
continued
52 cyril sweett group plc
annual report and accounts 2008
financial statements 2 significant accounting policies continued
cash and cash equivalents
cash and cash equivalents include cash in hand deposits held with banks and other shortterm highly liquid investments with original
maturities of three months or less bank overdrafts are shown within borrowings in current financial liabilities on the balance sheet
for the purposes of the cash flow statement cash and cash equivalents are net of bank overdrafts
impairment of financial assets
the group assesses at each balance sheet date whether there is objective evidence that a financial asset has been impaired
impairment losses are recognised in the income statement 
financial liabilities
financial liabilities are classified as either financial liabilities as ‘at fair value through profit or loss’ or other financial liabilities 
financial liabilities are classified as ‘at fair value through profit or loss’ where the financial liability is either held for trading or it is
specifically designated as such
other financial liabilities including borrowings are initially measured at fair value net of transaction costs and subsequently 
at amortised cost
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 to 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 using the effective interest method
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 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 substantially 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 and associates 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
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
53 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 trustee
administered 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 and are presented in the statement of recognised income and expense as permitted under ifrs 1 all actuarial gains
and losses as at 1 april 2004 the date of transition to ifrs were recognised for each plan
pastservice costs are recognised immediately in the consolidated income statement unless the changes to the scheme are conditional
upon employees remaining in service for a specified period in which case the pastservice costs are amortised on a straightline basis
over this period
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 fall due
sharebased payments
the group operates executive and employee share schemes for all grants of share options and awards the fair value as at the date of
grant is calculated using an appropriate 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
the grant by the company of share 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 investing 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 shareholders’ funds
sources of estimation uncertainty
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
significant judgements
the group believes that the most significant critical judgement area in the application of its accounting policies is revenue recognition
and the assessment of the value of workinprogress the other principal areas where judgements have been made are defined benefit
pension assumptions and impairment of goodwill
notes to the financial statements
continued
54 cyril sweett group plc
annual report and accounts 2008
financial statements 2 significant accounting policies continued
recent accounting developments
the following standards amendments and interpretations have been issued but are not yet mandatory
ifrs 8 ‘operating segments’ effective for annual periods beginning on or after 1 january 2009 introduces disclosures to enable the
user to evaluate the nature and financial effect of the business activities in which it engages and the economic environment in which it
operates this standard is not expected to have a material impact on the group’s consolidated financial statements
ifrs 3 revised ‘business combinations – comprehensive revision on applying the acquisition method’ effective from 1 july 2009
which will impact the way future acquisitions are reported this standard will not have a material impact on the acquisition made during
the year 
ias 23 revised ‘borrowing costs’ applies to borrowing costs relating to qualifying assets for which the commencement date for
capitalisation is on or after 1 january 2009 this standard is not expected to have a material impact on the group’s consolidated
financial statements
ias 27 revised ‘consolidated and separate financial statements – consequential amendment arising from amendments to ifrs 3’
effective for annual periods beginning on or after 1 january 2008 the group will apply ias 27 from 1 april 2008 but it is not expected 
to have a material impact on the group’s consolidated financial statements
ias 28 revised ‘investments in associates – consequential amendment arising from amendments to ifrs 3’ the group will apply 
ias 28 from 1 april 2008 but it is not expected to have a material impact on the group’s consolidated financial statements
ias 31 revised ‘investments in joint ventures – consequential amendment arising from amendments to ifrs 3’ the group will apply
ias 31 from 1 april 2008 but it is not expected to have a material impact on the group’s consolidated financial statements
ias 1 revised ‘presentation of financial statements – comprehensive revision including a statement of comprehensive income’
effective from 1 january 2009 impacting the presentational disclosure of the financial statements but will have no impact on the
carrying values of items it is not expected to have a material impact on the group’s consolidated financial statements
ifric 12 ‘service concession arrangements’ effective for annual periods beginning on or after 1 january 2008 the group will apply
ifric 12 from 1 april 2008 but it is not expected to have a material impact on the group’s consolidated financial statements
ifric 13 ‘customer loyalty programmes’ effective for annual periods beginning on or after 1 july 2007 the group will apply ifric 13
from 1 april 2008 but it is not expected to have a material impact on the group’s consolidated financial statements
ifric 14 ‘ias 19 – the limit on defined benefit asset minimum funding requirements and their interaction’ effective for annual periods
beginning on or after 1 january 2008 the group will apply ifric 14 from 1 april 2008 but it is not expected to have a material impact on
the group’s consolidated financial statements
ifric 13 and ifric 14 have not been endorsed by the european union
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
55 3 segmental analysis
for management purposes the company manages its operations through three geographical regions which are viewed as the primary
segments allocations have been made on the basis of the location of assets with the exception of certain corporate costs which have
remained unallocated
primary segments
2008 2007
other other
uk ireland overseas total uk ireland overseas total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
revenue by geographical regions by origin
external sales 56564 3245 2896 62705 48397 2851 813 52061
gross profit 20347 1158 806 22311 17012 1542 220 18774
administrative expenses 13956 616 912 15484 12366 695 128 13189
share of operating results of joint ventures – ––– 4––4
segment results 6391 542 106 6827 4650 847 92 5589
unallocated corporate costs 1017 849
finance income 222 58
finance costs 173 322
profit on sale of investment in associate – 85
profit before tax 5859 4561
taxation 1809 1370
profit for the year 4050 3191
 unallocated corporate costs comprise directors remuneration advertising public relations corporate financing costs and legal and
professional fees
other information
2008 2007
other other
uk ireland overseas total uk ireland overseas total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
capital additions 884 41 74 999 632 29 12 673
depreciation and amortisation 804 31 13 848 818 29 4 851
impairment of intangible assets –––– 295–– 295
capital additions comprise the acquisition of property plant and equipment and computer software
balance sheet
2008 2007
other other
uk ireland overseas total uk ireland overseas total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
assets 
segmental assets 32106 2652 2304 37062 26081 2175 319 28575
unallocated corporate assets 769 435
consolidated total assets 37831 29010
liabilities 
segmental liabilities 8847 403 286 9536 9246 618 166 10030
unallocated corporate liabilities 1694 4901
consolidated total liabilities 11230 14931
notes to the financial statements
continued
56 cyril sweett group plc
annual report and accounts 2008
financial statements 3 segmental analysis continued
the assets of the segments include intangible assets property plant and equipment assets from finance leases financial assets
investments accounted for using the equity method trade receivables and other receivable and cash and cash equivalents the liabilities
comprise trade and other payables and retirement benefit obligations unallocated corporate assets comprise deferred tax assets and
unallocated corporate liabilities comprise financial liabilities and current income tax liabilities
segment assets and liabilities are reconciled to entity assets and liabilities as follows
2008 2007
assets liabilities assets liabilities
£’000 £’000 £’000 £’000
segment assetsliabilities 37062 9536 28575 10030
unallocated
deferred tax 769 – 435 –
current tax – 805 – 460
current borrowings – 674 – 368
noncurrent borrowings –86 – 1378
bank overdrafts –– – 2305
current obligations under finance leases – 119 – 277
noncurrent obligations under finance leases –10 – 113
total 37831 11230 29010 14931
the group’s three business segments operate in three main geographical regions even though they are managed on a worldwide basis
secondary formats
2008 2007
£’000 £’000
revenue by business activity
quality surveying 32986 27113 
project management 20576 18182 
specialist servicesmanagement consultancy 9143 6766 
62705 52061 
additional information
revenue by geographical destination
united kingdom 53265 46783 
republic of ireland 3243 3368 
other overseas 6197 1910
62705 52061 
the group manages its business through segments based on geographical region business activities are not controlled independently
and separate information for segmental assets and capital expenditure is not available all revenue is generated from the rendering 
of services
4 net finance incomeexpense
2008 2007
£’000 £’000
finance income
interest receivable on bank deposits 222 58
finance expense
interest payable on bank and other borrowings 147 275
finance leases 26 47
173 322
net finance incomeexpense 49 264
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
57 5 profit before taxation is stated after chargingcrediting
profit before taxation is stated after chargingcrediting
2008 2007
£’000 £’000
employee benefit expense note 6 39132 33212
depreciation of property plant and equipment
owned assets 515 383
under finance leases 110 275
amortisation of intangible assets included in administrative expenses
owned assets 171 132
under finance leases 52 61
impairment of goodwill included in administrative expenses – 295
impairment loss recognised on trade receivables 307 383 
loss on disposal of property plant and equipment 28 –
operating lease rentals
plant and equipment 593 571
property 1523 1304
fees payable to company’s auditor for the audit of the parent company and consolidated financial statements 85 75
fees payable to company’s auditor for other services
– the audit of company’s subsidiaries pursuant to legislation 6 16
– taxation services 36 10
– other services 537 8
exchange gainloss 28 4
included in the fees payable to the company’s auditor for other services pursuant to legislation are fees amounting to £332000 
2007 £nil in respect of due diligence reviews which have been capitalised 
6 directors and employees
2008 2007
group company group company
£’000 £’000 £’000 £’000
staff costs including directors were as follows
wages and salaries 34345 32042 29134 27857
social security costs 3589 3462 3051 2946
sharebased payments 77 77 68 68
post employment benefit
defined contribution plan 910 826 779 727
defined benefit plan 211 211 180 180
total employee benefit expense 39132 36618 33212 31778
the average number of employees during the year
fee earners 580 542 510 492
administration 129 120 115 112
total staff 709 662 625 604
notes to the financial statements
continued
58 cyril sweett group plc
annual report and accounts 2008
financial statements 6 directors and employees continued
directors’ emoluments
2008 2007
£’000 £’000
group and company
aggregate emoluments 874 1054
aggregate gains made on exercise of share options 128 105
company contributions to money purchase scheme 42 49
1044 1208
2008 2007
£’000 £’000
highest paid director
aggregate emoluments 210 228
aggregate gains made on exercise of share options 52 –
company contributions to money purchase scheme 12 12
274 240
the highest paid director exercised options over 216346 shares during the year 2007 nil
2008 2007
number number
number of directors earning pension entitlement through company pension contributions 6 6
directors exercising share options
number of directors exercising share options 2 2
refer to the directors’ remuneration report for further details of remuneration of the directors employed by the company
key management compensation
group and company
key management of the company are considered to be the directors
2008 2007
£’000 £’000
aggregate emoluments 874 1054
sharebased payments 11 19
company contributions to money purchase scheme 42 49
927 1122
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
59 7 taxation
analysis of change in the year
2008 2007
£’000 £’000
current tax
uk corporation tax 1577 1179 
overseas tax 106 127 
double tax relief 41 – 
adjustments in respect of previous years 44 150
1686 1156 
deferred taxation
origination and reversal of timing differences – note 15 123 214 
taxation charge 1809 1370 
factors affecting the tax charge for the year
the total tax charge is higher 2007 higher than the standard rate of corporation tax in the uk 30 
the differences are explained as follows
2008 2007
£’000 £’000
profit before tax 5859 4561
profit before tax multiplied by standard rate of corporation tax in the uk of 30 1758 1368
effects of
expenses not deductible for tax purposes 430 296
income not subject to taxation – 33
tax relief in respect of share options 384 –
different tax rates on overseas earnings 133 163
adjustments to tax charge in respect of previous periods 45 150
remeasurement of deferred tax arising on the change in future tax rate 10 –
other timing differences 83 52
total taxation charge 1809 1370
during the year as a result of the change in uk corporation tax rates which will be effective from 1 april 2008 deferred tax balances
have been remeasured deferred tax relating to temporary differences expected to reverse after 1 april 2008 are measured at the tax rate
of 28 as this is the tax rate that will apply on reversal 
8 dividends
2008 2007
£’000 £’000
interim dividend paid of 08p per share in respect of the year ended 31 march 2008 443 426 
final dividend paid of 215p per share in respect of the year ended 31 march 2007 947 827 
1390 1253 
dividend per share in respect of the financial year
interim dividend per share paid during the year 080p 097p
final dividend per share declared for the year 160p 215p
the board has declared a final dividend in respect of the year ended 31 march 2008 of 160p per share amounting to £920637 
2007 215p per share amounting to £957026 included in the amount of £957026 is £10124 paid to the employee benefit trust 
these financial statements do not reflect the final dividend for 2008
notes to the financial statements
continued
60 cyril sweett group plc
annual report and accounts 2008
financial statements 9 earnings per share
2008 2007
£’000 £’000
profit for the financial year attributable to equity shareholders 4050 3191
number number
weighted average number of shares in issue 49098651 42813568
basic earnings per share pence 83 74
weighted average number of shares in issue 49098651 42813568
diluted effect of share options 2877532 1830139
51976183 44643707
diluted earnings per share pence 78 72
basic
basic earnings per share is calculated by dividing the profit attributable to equity shareholders 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 23
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 done 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
10 intangible assets
computer
goodwill software total
group £’000 £’000 £’000
cost
at 1 april 2006 2996 786 3782 
additions 295 98 393 
disposals – 106 106
at 31 march 2007 3291 778 4069 
additions 324 315 639 
disposals – 171 171
at 31 march 2008 3615 922 4537 
accumulated impairmentamortisation
at 1 april 2006 – 429 429 
impairment 295 – 295
charge for the year – 193 193
disposals – 106 106
at 31 march 2007 295 516 811 
charge for year – 223 223 
disposals – 171 171
at 31 march 2008 295 568 863 
net book amount
at 31 march 2008 3320 354 3674 
at 31 march 2007 2996 262 3258 
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
61 10 intangible assets continued
as at 1 april 2006 the balance represented goodwill acquired on the acquisition of the trade and assets of cyril sweett group in 
1998 £2703000 together with that arising on the acquisition of boydcreedsweett limited £293000 which became a subsidiary on 
30 september 2005 during 2007 the company acquired the entire share capital of altonwood project services limited resulting in an
addition to goodwill amounting to £295000
during the year the company completed the acquisition of the remaining 50 of the share capital of jones sweett international limited
for a cash payment of £104000 and a mutual return of shares the acquisition took effect from 31 december 2007 and jones sweett
international limited subsequently changed its name to cyril sweett international limited goodwill arising on acquisition amounted 
to £324000 further details of which can be found at note 26
the net book amount of computer software above includes assets held on finance lease with a net book amount of £48000 
2007 £115000 amortisation of £52000 2007 £61000 is included in administration expenses
computer 
goodwill software total
company £’000 £’000 £’000
cost
at 1 april 2006 2940 786 3726 
additions – 98 98 
disposals – 106 106
at 31 march 2007 2940 778 3718 
additions – 313 313 
disposals – 171 171
at 31 march 2008 2940 920 3860 
accumulated impairmentamortisation
at 1 april 2006 237 429 666 
charge for year – 193 193 
disposals – 106 106
at 31 march 2007 237 516 753 
charge for year – 223 223 
disposals – 171 171
at 31 march 2008 237 568 805 
net book amount
at 31 march 2008 2703 352 3055 
at 31 march 2007 2703 262 2965 
the net book amount of computer software above includes assets held on finance lease with a net book amount of £48000 
2007 £115000 amortisation of £52000 2007 £61000 is included in administration expenses
the key assumptions used in the value in use calculations for the evaluation of the carrying value of goodwill relating to the acquisition
of the cyril sweett group in 1998 and boydcreedsweett in 2006 were

revenue and profit before tax to grow in line with the rate of inflation estimated at 3
 a pretax discount rate of 10
the directors consider the assumptions used to be prudent in the light of the historical performance of each cashgenerating unit and
economic and industry measures and forecasts 
62 cyril sweett group plc
annual report and accounts 2008
financial statements
notes to the financial statements
continued 11 property plant and equipment
fixtures computer
and fittings hardware total
group £’000 £’000 £’000
cost
at 1 april 2006 1566 939 2505 
foreign exchange 2 1 3
additions 246 329 575 
disposals 72 104 176
at 31 march 2007 1738 1163 2901 
foreign exchange 26 13 39 
additions 490 172 662 
on acquisition of subsidiary undertaking note 26 9 13 22
disposals 478 334 812
at 31 march 2008 1785 1027 2812 
accumulated depreciation
at 1 april 2006 657 514 1171 
foreign exchange 1 1 2
charge for the year 317 341 658 
disposals 71 96 167
at 31 march 2007 902 758 1660 
foreign exchange 18 11 29 
charge for the year 359 266 625 
disposals 448 333 781
at 31 march 2008 831 702 1533 
net book amount
at 31 march 2008 954 325 1279 
at 31 march 2007 836 405 1241 
the net book amount of property plant and equipment above includes assets held on finance lease with a net book amount of £145000
2007 £449000
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
63 11 property plant and equipment continued
fixtures computer
and fittings hardware total
company £’000 £’000 £’000
cost
at 1 april 2006 1506 914 2420 
foreign exchange 1 – 1
additions 240 301 541 
disposals 72 103 175
at 31 march 2007 1673 1112 2785 
foreign exchange 6 – 6 
additions 458 127 585 
disposals 478 334 812
at 31 march 2008 1659 905 2564 
accumulated depreciation
at 1 april 2006 645 504 1149 
charge for the year 305 324 629 
disposals 72 96 168
at 31 march 2007 878 732 1610 
foreign exchange 3 – 3 
charge for the year 341 247 588 
disposals 448 334 782
at 31 march 2008 774 645 1419 
net book amount
at 31 march 2008 885 260 1145 
at 31 march 2007 795 380 1175 
the net book amount of property plant and equipment above includes assets held on finance lease with a net book amount of £135000
2007 £445000
12 financial assets
availablefor loans and 
sale assets receivables total
group £’000 £’000 £’000
fair valuecost
at 1 april 2006 – 236 236 
additions 4 64 68 
fair value adjustment 600 – 600 
at 31 march 2007 604 300 904 
additions 8 29 37 
at 31 march 2008 612 329 941 
financial assets available for sale primarily relate to the capital cost of 19 of the issued share capital of lift investments limited 
a company incorporated in england and wales 5 of the issued share capital of education 4 ayrshire holdings limited a company
incorporated in scotland and 15 of education 4 dumfries  galloway limited a company incorporated in scotland fair values 
are based upon the prevailing secondary market discount rate for such assets together with prices obtained on the sale of similar
investments the financial assets available for sale are in the uk
loans and receivables are subordinated loans to lift investments limited together with accrued interest note 29
there were no disposals or impairment provisions on availableforsale assets during 2008 or 2007
notes to the financial statements
continued
64 cyril sweett group plc
annual report and accounts 2008
financial statements 12 financial assets continued
shares in 
shares in subsidiary
joint venture undertakings total
company £’000 £’000 £’000
fair valuecost
at 1 april 2006 216 1079 1295
additions – 368 368
at 31 march 2007 216 1447 1663
additions note 26 – 104 104 
transfer from investment in joint venture 216 216 – 
at 31 march 2008 – 1767 1767 
provisions for impairment
at 1 april 2006 –––
additions – 365 365
at 31 march 2007 and at 31 march 2008 – 365 365
net book amount
at 31 march 2008 – 1402 1402 
at 31 march 2007 216 1082 1298 
13 investments accounted for using equity method
associated
joint ventures undertakings total
group £’000 £’000 £’000
at 1 april 2006 216 40 256 
share of retained earnings 4 – 4 
disposals – 40 40
at 31 march 2007 220 – 220 
transfer to shares in group undertakings 220 – 220
at 31 march 2008 – – – 
during the year cyril sweett group plc acquired the remaining 50 of jones sweett international limited following which the name 
of the now wholly owned subsidiary was changed to cyril sweett international limited note 26
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
65 14 subsidiary undertakings
group’s class of country of principal
interest shares held registration activities
cyril sweett investments limited 100 ordinary england intermediate group 
formerly cyril sweett holdings limited holding company
cyril sweett international holdings limited 100 ordinary england intermediate group
holding company
cyril sweett limited 100 ordinary england nontrading
cyril sweett  partners limited 100 ordinary england dormant
c e ball  partners limited  100 ordinary england dormant
cyril sweett trustee company limited 100 ordinary england corporate trustee
lift partnerships limited 100 ordinary england construction consultancy
altonwood project services limited 100 ordinary england nontrading
csbc healthcare limited 100 ordinary ireland construction consultancy
boydcreedsweett limited 100 ordinary ireland construction consultancy
cyril sweett españa sl 100 ordinary spain construction consultancy
cyril sweett international limited 100 ordinary cyprus intermediate group
holding company
cyril sweett cyprus limited 100 ordinary cyprus intermediate group
holding company
cyril sweett india private limited 100 ordinary india construction consultancy
cyril sweett australia pty limited 100 ordinary australia intermediate group
holding company
all 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
15 deferred taxation
2008 2007
group company group company
£’000 £’000 £’000 £’000
deferred tax
at 1 april 435 615 811 811
charged to the income statement 123 123 214 214
creditedcharged directly to reserves 289 277 162 18
at 31 march 601 769 435 615
disclosed as
deferred tax asset 769 769 435 615
deferred tax liability 168 – ––
deferred taxation provided in the accounts is as follows
capital allowances in advance of depreciation 101 101 102 102
outstanding share options 615 615 ––
other timing differences 115 53 30 150
retirement benefit obligations note 20 –– 363 363
at 31 march 601 769 435 615
deferred tax estimated to be recoverable within one year is £162000 2007 £137000 there are no material unrecognised deferred 
tax assets
other timing differences represent net of deferred tax asset on provisions of £53000 2007 £150000 and deferred tax liability on
valuation gain of £168000 2007 £180000
notes to the financial statements
continued
66 cyril sweett group plc
annual report and accounts 2008
financial statements 16 trade and other receivables
2008 2007
group company group company
current receivables £’000 £’000 £’000 £’000
gross amount due from customers for contract work 60593 56210 57355 56111
less progress payments received 54932 51247 51980 51326
5661 4963 5375 4785
trade receivables 17442 14905 15533 13806
less provision for impairment 947 902 640 638
16495 14003 14893 13168
amounts owed by group undertakings – 2572 – 676
other receivables 811 193 424 135
prepayments and accrued income 1471 1400 1039 1010
24438 23131 21731 19774
as at 31 march 2008 trade receivables of £2246000 2007 £1384000 were impaired by either a bad debt or credit note provision 
the amount of the debt provision was £947000 2007 £640000 the individually impaired receivables mainly relate to ongoing minor
disputes with customers it was assessed that a portion of the receivables is expected to be recovered the ageing of these receivables
from the date of invoice is as follows
2008 2007
group company group company
£’000 £’000 £’000 £’000
less than 90 days 436 430 461 461 
over 90 days 1810 1765 923 921 
2246 2195 1384 1382 
as of 31 march 2008 trade receivables of £7826000 2007 £4472000 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 from the date 
of invoice is as follows
2008 2007
group company group company
£’000 £’000 £’000 £’000
less than 90 days 5601 4653 2577 2112
over 90 days 2225 1069 1895 1265
7826 5722 4472 3377
the carrying amounts of receivables are denominated in the following currencies
2008 2007
group company group company
£’000 £’000 £’000 £’000
pounds 13773 13768 13026 13012 
euros 2331 235 1867 156 
dirhams 356 – – – 
rupees 35 – – – 
16495 14003 14893 13168 
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
67 16 trade and other receivables continued
movements in the provision for impairment of trade receivables are as follows
2008 2007
group company group company
£’000 £’000 £’000 £’000
at 1 april 640 638 257 257 
provision for receivables impairment 550 507 532 530 
unused amounts reversed or written off 243 243 149 149
at 31 march 947 902 640 638 
the creation and release of provisions for impaired receivables has been included in ‘administrative expenses’ in respect of the bad debt
provision and as a reduction in revenue in respect of credit note provision in the income statement
the maximum exposure to credit risk at the reporting date is the carrying value of the receivable balances mentioned above the group
does not provide any collateral as security
17 cash and cash equivalents 
2008 2007
group company group company
£’000 £’000 £’000 £’000
cash at bank and in hand 6730 5101 1221 256 
for the purposes of the cash flow statement cash and cash equivalents are included net of overdrafts repayable on demand 
these overdrafts are excluded from the definition of cash and cash equivalents disclosed on the balance sheet
2008 2007
group company group company
£’000 £’000 £’000 £’000
cash and cash equivalents as above 6730 5101 1221 256 
overdraft note 18 – – 2305 2262
6730 5101 1084 2006
the effective interest rate on cash balances was 56 2007 48
notes to the financial statements
continued
68 cyril sweett group plc
annual report and accounts 2008
financial statements 18 financial liabilities
2008 2007
group company group company
current £’000 £’000 £’000 £’000
bank overdrafts – – 2305 2262 
bank loans 674 674 1378 1378 
obligations under finance leases 119 114 277 267 
793 788 3960 3907 
2008 2007
noncurrent £’000 £’000 £’000 £’000
bank loans 86 86 368 368 
obligations under finance leases 10 – 113 113 
96 86 481 481 
2008 2007
bank loans £’000 £’000 £’000 £’000
analysis of maturity of debt
within one year or on demand 674 674 1378 1378 
between one and two years 86 86 279 279 
between two and five years – – 89 89 
760 760 1746 1746 
in december 2002 the group took a five year term loan from the royal bank of scotland plc of £21m this was repayable in quarterly
instalments commencing february 2003 and was secured by an all asset debenture and letters of non reactivation for cyril sweett
holdings limited cyril sweett  partners limited c e ball  partners limited the rate of interest is libor plus 175 capped 
at 6 on 1 february 2006 the company took a further two year term loan from the royal bank of scotland plc of £09m which was
secured on the same basis as the existing term loan and was repayable in to equal annual instalments commencing on 1 february 2007
the rate of interest was libor plus 125 
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
69 18 financial liabilities continued
during the year the company changed its principal banker from the royal bank of scotland plc to bank of scotland plc and repaid
existing debt with the former leading to a lapse of the related security as part of the new banking arrangements bank of scotland plc
has provided a multicurrency revolving credit facility of up to £5m for the financing of acquisitions this facility is secured by a first 
and only debenture and a crossguarantee of the company cyril sweett limited cyril sweett international holdings limited and 
cyril sweett investments limited the rate of interest is 11 over libor or euribor and drawdowns are repayable in 2013 with
prepayment in whole or in part permitted the facility was unused at the balance sheet date further bank loans of £760000 
2007 £928000 are unsecured
the present value of finance leases liabilities fall due as follows
2008 2007
group company group company
£’000 £’000 £’000 £’000
within one year or on demand 123 118 294 282 
between one and two years 11 – 118 118 
134 118 412 400 
future finance charges on finance leases 5 4 22 20
present value of finance lease liabilities 129 114 390 380 
2008 2007
group company group company
£’000 £’000 £’000 £’000
analysis of maturity of debt
within one year or on demand 119 114 277 267 
between one and two years 10 – 113 113 
129 114 390 380 
19 trade and other payables
2008 2007
group company group company
£’000 £’000 £’000 £’000
amounts due to customers on longterm contracts 1495 969 1247 736
trade payables 993 981 683 681
amounts owed to group undertakings – 651 –68
other taxes and social security costs 2890 2691 2810 2589
other payables 579 528 431 410
accruals and deferred income 3411 2998 3648 3177
9368 8818 8819 7661
notes to the financial statements
continued
70 cyril sweett group plc
annual report and accounts 2008
financial statements 20 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 cyril sweett group personal pension scheme
full actuarial valuations are prepared every three years with the next valuation due at 30 june 2008 at the last valuation the following
growth rate assumptions were used
investment return 60–70
salary increases 28
pension increases 28
at the latest actuarial valuation completed as at 30 june 2005 the market value of the assets was £7179000 which represented 
72 of the benefits accrued to members on an ongoing basis the resulting deficit being £2827000
during the year the company contributed at the rate of £40000 per month and the current schedule of contributions requires ongoing
contributions of this amount
the most recent and full actuarial valuation was carried out at 30 june 2005 by an independent actuary and has been updated to 
31 march 2008 for the purposes of inclusion of information about the pension scheme in these accounts the main assumptions used 
by management were
 per annum  per annum  per annum  per annum
31 march 31 march 31 march 31 march
2008 2007 2006 2005
rate of increase of salaries na na na na
rate of increase of indexlinked pensions in payment 36 33 31 31
discount rate 68 54 50 54
inflation assumption 36 33 31 31
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 average life expectancy in years of a pensioner retiring at the age of 65 on the balance sheet date is as follows
2008 2007
male 19 19
female 22 22
the average life expectancy in years of a pensioner retiring at the age of 65 20 years after the balance sheet date is as follows 
2008 2007
male 199 199
female 228 228
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
71 20 retirement benefit obligations continued
defined benefit pension schemes continued
group and company continued
the amounts recognised in the balance sheet are determined as follows
2008 2007 2006
£’000 £’000 £’000
present value of plan assets 9199 9140 8609
present value of funded obligation 9199 10351 10347
assetliability in the balance sheet – 1211 1738
related deferred tax asset – 363 521
net pension assetliability – 848 1217
the amounts recognised in the income statement are as follows
2008 2007 2006
£’000 £’000 £’000
current service costs 211 180 142
expected return on plan assets 630 587 485
interest cost 551 509 467
total included in administrative expenses 132 102 124
movement in the present value of the defined benefit obligation during the year is as follows
2008 2007 2006
£’000 £’000 £’000
opening retirement benefit obligation 1211 1738 1945
movement in the year
current service cost 211 180 142
employer contributions 692 689 361
expected return on plan assets 630 587 485
interest on plan liabilities 551 509 467
actuarial gainslosses 651 60 30
closing retirement benefit obligation – 1211 1738
analysis of amount recognised in the statement of recognised income and expense
2008 2007 2006
£’000 £’000 £’000
actual return less expected return 744 230 1327
experience gains and losses 36 132 35
changes in assumptions 1359 302 1322
recognised actuarial gainslosses 651 60 30
notes to the financial statements
continued
72 cyril sweett group plc
annual report and accounts 2008
financial statements 20 retirement benefit obligations continued
defined benefit pension schemes continued
the major categories of plan assets and the expected rate of return at the balance sheet date for each category is as follows
longterm longterm longterm
rate of rate of rate of
return return return
expected at fair value at expected at fair value at expected at fair value at
31 march 31 march 31 march 31 march 31 march 31 march
2008 2008 2007 2007 2006 2006
pa £’000 pa £’000 pa £’000
equities and property 750 4744 780 5913 740 6564
fixed interest 500 1993 530 1557 490 1023
index linked gilts 450 2397 480 1603 440 1022
cash and other 525 65 525 67 450 –
9199 9140 8609
in 2008 there was a negative return on plan assets of £114000 2007 positive return of £357000
the contribution expected to be paid during the financial year to 31 march 2009 amounts to £480000 for the funded final salary scheme
and £212000 for the group life scheme
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
are thus inherently uncertain
movement in the present value of plan assets were as follows
2008 2007 2006
£’000 £’000 £’000
opening fair value of plan assets 9140 8609 6811
expected return on plan assets 630 587 485
benefits paid 519 515 375
actual return less expected return 744 230 1327
contribution from the employer 692 689 361
closing fair value of plan assets 9199 9140 8609
movement in the present value of defined obligations were as follows
2008 2007 2006
£’000 £’000 £’000
opening fair value of obligations 10351 10347 8756
interest on plan liabilities 551 509 467
benefits paid 519 515 375
changes in assumptions 1359 302 1322
current service costs 211 180 142
experience gains and losses 36 132 35
closing fair value of obligations 9199 10351 10347
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
73 20 retirement benefit obligations continued
defined benefit pension schemes continued
the history of experience adjustments is as follows
2008 2007 2006
£’000 £’000 £’000
difference between actuarial and expected return on plan assets
amount 744 230 1327
 of plan assets 8 3 15
experience gains and losses on plan liabilities
amount 36 132 35
 of plan liabilities 0 1 0
total amount recognised in statement of recognised income and expense
amount 651 60 30
 of plan liabilities 7 1 0
money purchase pension schemes
the company’s contribution to the cyril sweett group plc group personal pension gpp scheme for the period 1 april 2007 to 31 march
2008 was £878000 2007 £777000
the company also contributes to employees’ personal pension schemes and the charge for the year was £120000 2007 £144000
at the year end the accounts included an accrual for pension contributions of £135000 2007 £103000
21 share capital
group and company
2008 2007
£’000 £’000
authorised
75000000 2007 50000000 ordinary shares of 10p each 7500 5000
2008 2007
£’000 £’000
called up and fully paid
‘a’ ordinary shares of 10p each – 4314
‘b’ ordinary shares of 10p each – 137
ordinary shares of 10p each 5534 –
5534 4451
2008 2007
000’s 000’s
number of shares
‘a’ ordinary shares of 10p each – 43141
‘b’ ordinary shares of 10p each – 1372
ordinary shares of 10p each 55336 –
55336 44513
notes to the financial statements
continued
74 cyril sweett group plc
annual report and accounts 2008
financial statements 21 share capital continued
movement in share capital
2008 2007
£’000 £’000
at 1 april 4451 4283
shares issued note 22 1083 168
at 31 march 5534 4451
on 18 june 2007 pursuant to resolutions passed by the shareholders of the company all of the issued and unissued a ordinary shares
of 10p each and b ordinary shares of 10p each in the capital of the company were redesignated as ordinary shares of 10p each and the
authorised share capital of the company was increased from £5000000 to £7500000 by the creation of 25000000 new ordinary shares
of 10p each the a ordinary shares and b ordinary shares carried the same rights and privileges and ranked pari passu in all respects
for participation in the profits and assets of the company and in all other respects except that the b ordinary shares did not entitle the
holders thereof to receive notice of or to attend or vote at any general meeting
22 share premium account
group and company
2008 2007
£’000 £’000
at 1 april 1923 1613
shares issued 9632 310
issue costs 1568 –
at 31 march 9987 1923
on 15 june 2007 the company issued 216346 b ordinary shares at a premium of 108p per share 216346 a ordinary shares at a
premium of 108p per share and 75000 a ordinary shares at a premium of 36p per share in satisfaction of the exercise of share options
on 19 july 2007 the company issued 560000 ordinary shares to the cyril sweett employee benefit trust at a premium of 35p per share
on 22 august 2007 the company issued 48077 ordinary shares at a premium of 108p per share in satisfaction of the exercise of share
options on 7 september the company issued 216346 ordinary shares at a premium of 108p per share in satisfaction of the exercise 
of share options and on 1 october 2007 the company issued 350000 ordinary shares to the cyril sweett employee benefit trust 
at a premium of 76p per share
on 31 october 2007 the company issued 9090910 ordinary shares at a premium of £1 per share these shares were admitted to trading 
on the alternative investment market of the london stock exchange plc the costs incurred in connection with placing these shares
amounting to £16m have been deducted from the share premium account
on 6 december 2007 the company issued 50000 ordinary shares at a premium of 36p per share in satisfaction of the exercise of 
share options
23 treasury shares
group and company
2008 2007
£’000 £’000
at 1 april 354 495 
disposals 13 141
at 31 march 341 354
as at 31 march 2008 the treasury shares represent 354006 ordinary shares 2007 785478 ‘a’ ordinary shares of the company held by
the company’s employee benefit trust and share incentive plan set out below with a value of £341000 2007 £354000 these shares
represented 06 2007 176 of the company’s issued shares 
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
75 23 treasury shares continued
cyril sweett 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
2008 the employee benefit trust held 209081 shares 2007 416864 shares which were valued at £212000 2007 £188000
cyril 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
as of 31 march 2008 the plan held 144295 shares 2007 368614 shares with a value of £129000 2007 £166000 which had not been
allocated to individual employees
24 equity settled sharebased 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 these options have a contractual life of ten 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 the unexercised options at the end of the year are 
stated below
option 2008 2007
exercise price shares shares
date of grant of option per share 000’s 000’s
unapproved options
20 november 2000 136p 175 175
31 october 2007 1100p 186 –
361 175
csop
20 november 2000 136p 65 190
21 september 2001 159p 157 157
29 january 2007 427p 100 100
31 march 2007 450p 44 44
31 march 2008 945p 30 –
396 491
emi
6 october 2003 208p 559 1953
28 november 2005 335p 1223 1350
16 october 2006 427p 1490 1565
31 october 2007 1100p 734 –
14 january 2008 1100p 30 –
4036 4868
the estimated fair value of these share options range between 5p per share and 14p per share this was calculated by applying a
binomial option pricing model the model inputs were the share price at grant date the appropriate exercise price expected volatility of
30 expected dividend yield of 25 2007 86 contractual life of ten years and a riskfree interest rate of 55 2007 55 it was
assumed that employees would exercise their options during the first year after the option vesting date the volatility of 30 2007 30
represents the average of the volatility of a range of listed companies which operate in the same or similar sector as this company
notes to the financial statements
continued
76 cyril sweett group plc
annual report and accounts 2008
financial statements 24 equity settledshare based payments continued
further details of the three share option plans are as follows
2008 2007
2008 weighted 2007 weighted 
number of average number of average
options exercise options exercise
000’s price 000’s price
outstanding at the start of the period 5534 305p 5014 242p
granted 980 1100p 1846 423p
forfeited 202 369p 226 353p
exercised 1519 202p 1100 208p
outstanding at the end of the period 4793 497p 5534 305p
exercisable at the end of the period 956 497p 2475 305p
options exercised during 2008 resulted in 697115 shares being issued at 208p each and 125000 shares being issued at 136p each
2007 1099999 shares issued at 208p each the related weighted average share price at the time of exercises was 305p 2007 242p
per share
share options outstanding at the end of the year have the following expiry dates and exercise prices
shares
exercise 
price 
expiry date of option per share 2008 2007
20 november 2010 136p 240000 365000
21 september 2011 159p 157233 157233
6 october 2013 208p 558654 1952884
28 november 2015 335p 1222636 1349501
16 october 2016 427p 1490000 1565000
29 january 2017 427p 100257 100257
1 march 2017 450p 44444 44444
31 october 2017 1100p 920000 –
14 january 2018 1100p 30000 –
31 march 2018 945p 30000 –
4793224 5534319
share option reserve
group and company
2008 2007
£’000 £’000
at 1 april 154 145
value of employee services provided 77 68
deferred tax on unexercised options 459 –
transfer to retained earnings on exercise 75 59
at 31 march 615 154
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
77 25 statement of changes in shareholders’ equity 
share
share share treasury retained option total 
capital premium shares earnings reserves equity
group £’000 £’000 £’000 £’000 £’000 £’000
at 31 march 2006 4283 1613 495 5525 145 11071
exchange differences –––5–5
profit for the year – – – 3191 – 3191
dividends – – – 1253 – 1253
actuarial loss – – – 60 – 60
deferred tax on actuarial loss – – – 18 – 18
availableforsale investments – – – 600 – 600
deferred tax on availablefor
sale investments – – – 180 – 180
employee share option scheme
– value of services provided –––– 68 68
– exercise of awards – – – 59 59 
disposal of shares during the year – – 141 – – 141
new shares issued on acquisition 168 310  – – 478
at 31 march 2007 4451 1923 354 7905 154 14079
exchange differences – – – 280 – 280
profit for the year – – – 4050 – 4050
dividends – – – 1390 – 1390
actuarial gain – – – 651 – 651
deferred tax on actuarial gain – – – 182 – 182
deferred tax on availablefor
sale investments – – – 12 – 12
employee share option scheme
– value of services provided –––– 77 77
– exercise of awards – – – 75 75 –
– deferred tax on unexercised options –––– 459 459
purchase of shares by the ebt 
less exercise price of options 
exercised over these shares – – – 595 – 595
disposal of shares during the year – – 13 – – 13
new shares issued during the year 1083 9632––– 10715
issue costs – 1568 – – – 1568
at 31 march 2008 5534 9987 341 10806 615 26601
cumulative exchange gains recorded through the statement of changes in shareholders’ equity amounted to £296000 2007 £16000
included in retained earnings is an amount of £408000 2007 £420000 which is not available for distribution
notes to the financial statements
continued
78 cyril sweett group plc
annual report and accounts 2008
financial statements 25 statement of changes in shareholders’ equity continued
share
share share treasury retained option total 
capital premium shares earnings reserves equity
company £’000 £’000 £’000 £’000 £’000 £’000
at 31 march 2006 4283 1613 495 5227 145 10773
profit for the year – – – 2395 – 2395
dividends – – – 1253 – 1253
actuarial loss – – – 60 – 60
deferred tax on actuarial loss – – – 18 – 18
employee share option scheme
– value of services provided –––– 68 68
– exercise of awards – – – 59 59 –
disposals during the year – – 141 – – 141
new shares issued on acquisition 168 310––– 478
at 31 march 2007 4451 1923 354 6386 154 12560
exchange differences – – – 2 – 2
profit for the year – – – 3664 – 3664
dividends – – – 1390 – 1390
actuarial gain – – – 651 – 651
deferred tax on actuarial gain – – – 182 – 182
employee share option scheme
– value of services provided –––– 77 77
– exercise of awards – – – 75 75 –
– deferred tax on unexercised options –––– 459 459
purchase of shares by the ebt less 
exercise price of options exercised 
over these shares – – – 595 – 595
disposals during the year – – 13 – – 13
new shares issued during the year 1083 9632––– 10715
issue costs – 1568 – – – 1568
at 31 march 2008 5534 9987 341 8607 615 24402
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
79 26 acquisitions
on 22 february 2008 the company completed the acquisition of the remaining 50 of the share capital of jones sweett international
limited for a cash payment of £103518 and a mutual return of shares the acquisition took effect from 31 december 2007 and jones
sweett international limited subsequently changed its name to cyril sweett international limited
group
provisional fair value and book value of the assets and liabilities of jones sweett international limited are
2008
£’000
plant and equipment 22
receivables 628
payables 822
cash and cash equivalents 172
net assets acquired –
goodwill 324
consideration 324
consideration satisfied by 
transfer from shares in joint venture 220
cash costs paid 104
324
the acquired business contributed revenues of £370000 and a net loss of £39000 to the group for the period from 1 january 2008 to 
31 march 2008 if the acquisition had occurred on 1 april 2007 group revenue would have been £636m and profit before taxation would
have been £57m
27 cash flows from operations
2008 2007
group company group company
£’000 £’000 £’000 £’000
operating profit 5810 5394 4736 3921
adjustment for
depreciation of property plant and equipment 625 588 658 629
amortisation of intangible assets 223 223 193 193
impairment of goodwill –– 295 –
impairment of financial assets –– – 365
loss on disposal of plant and equipment 28 28 ––
sharebased payments 77 77 68 68
operating cash flows before movements in working capital 6763 6310 5950 5176
increase in receivables 2434 3524 3249 2433
decreaseincrease in payables 390 623 292 424
foreign exchange 54 3 6–
3993 3412 2415 2319
notes to the financial statements
continued
80 cyril sweett group plc
annual report and accounts 2008
financial statements 28 major noncash transactions
group and company
2008 2007
£’000 £’000
capital value of new finance lease arrangements – 345
29 financial risk management
the main risks arising from the groups financial instruments are foreign currency risk credit 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 shares borrowings and debtors and creditors arising
from normal trading activities banking facilities are negotiated to provide working capital and acquisition finance to meet current and 
future requirements
foreign currency risk
most of the groups 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
the group has certain investments in foreign operations whose net assets are exposed to foreign currency translation risk currency
exposure arising from the net assets of the group’s foreign currency operations is managed primarily through borrowings denominated
in the relevant foreign currencies 
liquidity and interest rate risk
the groups objective is to ensure that sufficient cash reserves are available to fund ongoing activities and future development plans
this risk is managed through a combination of short and longterm loan funding the purchase of assets through finance lease
arrangements and overdraft facilities in addition the risk is mitigated by the policy of periodic invoicing on longterm contracts
the maturity of financial liabilities is as follows
2008 2007
group company group company
£’000 £’000 £’000 £’000
within one year 793 788 3960 3907
between one and two years 96 86 393 392
between two and five years –– 88 89
889 874 4441 4388
the group changed its principal banker from the royal bank of scotland plc to bank of scotland during the year  the principal cash
facilities now available comprise a committed overdraft facility of £4m and a fiveyear committed revolving credit facility of £5m to be 
used for acquisition finance neither of these facilities nor an overdraft facility of a subsidiary company of £175000 was utilised at 
31 march 2008
in addition to these facilities the principal banker has made available other cash facilities totalling £35m for asset and insurance
premium financing none of which was drawn at 31 march 2008 this facility is subject to the following covenants
 net worth including goodwill shall not at any time be less than £13m

the ratio of earnings before interest tax depreciation and amortisation to total interest for each quarterly test date shall not be less
than 41
the group has £6730000 2007 £1221000 of cash and cash equivalents at the year end held in bank accounts which is immediately
available for use cash surplus to shortterm requirements is usually invested overnight on the money market to earn interest at rates
close to the prevailing local base rates the effective interest rate on cash held was 56 2007 48
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
81 29 financial risk management continued
fair values
the fair value of the groups financial assets and liabilities are equal to their carrying value
credit risk
the group has no significant concentration of credit risk this risk is managed by implementing appropriate credit control procedures 
in the conduct of its business
capital risk
the groups objectives when managing capital are to safeguard the groups 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 longterm cost
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
30 related party transactions 
group and company
mr m kemsley is a shareholder of fieldwick kemsley and partners limited which provided accountancy and company secretarial
services to the company during the year at a cost of £6510 2007 £7141 at the year end no monies were owed to this company 
2007 £nil
during the year the company entered into transactions totalling £14541 2007 £20038 with the british council of offices of which
francis ives is a director  at the year end £858 was owed to this company 2007 £nil
additionally the company entered into transactions totalling £26194 2007 £36054 with the british council of shopping centres 
of which derek pitcher is a director  at the year end £464 was owed to this company 2007 £nil
the directors are of the opinion that the above transactions were on normal commercial terms
cyril sweett investments limited formerly cyril sweett holdings limited holds 19 of the issued share capital of lift investments
limited to which it has advanced subordinated debt funding and on which it earns interest at the rate of 125 the subordinated debt
repayable at 31 march 2008 was £329959 2007 £300075 and interest earned during the year was £42112 2007 £33050
other receivables of the group include the following amounts receivable from directors in respect of season ticket loans all advances
are interest free and repayable by monthly instalments
31 march 31 march
2008 2007
director £’000 £’000
a r hemsley – 1
f r ives – 2
m kemsley 2 2
d r pitcher – 2
j bradbury – 2
d l webster 3 –
notes to the financial statements
continued
82 cyril sweett group plc
annual report and accounts 2008
financial statements 30 related party transactions continued
group and company
maximum loan maximum loan
outstanding outstanding
during the during the
year to year to
31 march 31 march
2008 2007
director £’000 £’000
a r hemsley – 5
f r ives – 5
m kemsley 2 2
d r pitcher 2 3
j bradbury – 2
d l webster 5 –
company  
sales of goods and services
2008 2007
£000 £000
sales of services to related parties 
fellow group undertakings 1118 923
purchases of services from related parties 
fellow group undertakings 17 46
sales and purchases to and from fellow group undertakings were carried out on commercial terms and at market prices
year end balances arising from sales and purchases of services are as follows 
2008 2007
£000 £000
receivable from related parties 
fellow group undertakings 2572 676
payables to related parties 
fellow group undertakings 651 68
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
83 31 operating lease commitments – minimum lease payments
future commitments under noncancellable operating leases
2008 2007
£’000 £’000
land and buildings
within one year 1885 1207
within two to five years 3195 3257
after five years – 392
5080 4856
plant and machinery
within one year 576 335
within two to five years 909 456
1485 791
the group leases land and buildings plant and machinery under noncancellable operating lease arrangements which have various
terms and renewal rights
32 capital and other financial commitments
at 31 march 2008 the group had no significant capital expenditure commitments 2007 £nil
33 post balance sheet events
on 1 april 2008 the company reorganised its corporate structure transferring its main uk trading activity to cyril sweett limited and
transferring its nonuk subsidiaries to cyril sweett international holdings limited both of which are wholly owned subsidiary
undertakings
on 1 april 2008 cyril sweett australia pty limited the company’s wholly owned subsidiary undertaking in australia completed the
acquisition of the entire share capital of burns bridge holdings pty limited and its subsidiary companies burns bridge is an australian
based project management business with operations in australia singapore and abu dhabi the initial consideration was satisfied by a
cash payment of aud 225m and the balance by the transfer of 493534 ordinary shares of 10p each in cyril sweett group plc deferred
consideration will be payable contingent upon the financial performance of burns bridge during the 12 months to 30 june 2008 and 
the 12 months to 30 june 2009 and in any event will not exceed aud 118m the total consideration in any event will not exceed 
aud 150m
on 3 april 2008 cyril sweett limited the company’s wholly owned subsidiary completed the acquisition of the trade certain assets 
and goodwill of nisbet llp together with the entire share capital of nisbet project safety limited for a total consideration of £59m 
the initial consideration payable on completion was £18m payable in cash and the allotment of 2203928 cyril sweett group plc
ordinary shares of 10p each deferred consideration of £648000 is payable in cash during the six months following completion 
and £13m will be paid over the next two years
on 4 april 2008 cyril sweett limited the company’s wholly owned subsidiary completed the acquisition of the trade certain assets and
goodwill of roger richards partnership for a total consideration of £250000
the approval of the final recommended dividend of 16p per share will be proposed at the forthcoming annual general meeting
notes to the financial statements
continued
84 cyril sweett group plc
annual report and accounts 2008
financial statements 34 reconciliation of net assets and profit under uk gaap to ifrs
cyril sweett group plc reported under uk gaap in its previously published financial statements the analysis below shows a
reconciliation of net assets as reported under uk gaap as at 31 march 2006 and 2007 and income statements for the years ended 
31 march 2006 and 2007 to the revised net assets and profits under ifrs as reported in these financial statements there has been 
no material adjustment to the cash flows in previous years
reconciliation of equity at 31 march 2006
elimination of
employee negative restated in
reformatted benefits goodwill other accordance
uk gaap ias 19 ifrs 3 reclassifications with ifrs
group £’000 £’000 £’000 £’000 £’000
noncurrent assets
intangible assets 2965 – 30 358 3353
plant equipment fixtures and fittings 1692 – – 358 1334
financial assets available for sale – – – 236 236
investments accounted for 
using equity method 148 – – 108 256
deferred taxation asset 178 633 – – 811
trade and other receivables 236 – – 236 –
total noncurrent assets 5219 633 30 108 5990
current assets
trade and other receivables 18254––– 18254
cash and cash equivalents 1069––– 1069
total current assets 19323––– 19323
current liabilities
financial liabilities 2042 – – – 2042
trade and other payables 8048 373 – – 8421
current income tax liabilities 848 – – – 848
total current liabilities 10938 373 – – 11311
net current assets 8385 373 – – 8012
total assets less current liabilities 13604 260 30 108 14002
noncurrent liabilities 
financial liabilities 1193 – – – 1193
retirement benefit obligations 1217 521 – – 1738
total noncurrent liabilities 2410 521 – – 2931
net assets 11194 261 30 108 11071
capital and reserves
share capital 4283––– 4283
share premium 1613––– 1613
treasury shares 603 – – 108 495
share option reserve 145––– 145
pension reserve 1217 1217–––
retained earnings 6973 1478 30 – 5525
total equity shareholders’ funds 11194 261 30 108 11071
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
85 34 reconciliation of net assets and profit under uk gaap to ifrs continued
reconciliation of equity at 31 march 2006
elimination of
employee negative restated in
reformatted benefits goodwill other accordance
uk gaap ias 19 ifrs 3 reclassifications with ifrs
company £’000 £’000 £’000 £’000 £’000
noncurrent assets 
intangible assets 2673 – 30 358 3061
plant equipment fixtures and fittings 1629 – – 358 1271
financial assets available for sale 1079––– 1079
investments accounted for 
using equity method 122 – – 108 230
deferred taxation asset 178 633 – – 811
total noncurrent assets 5681 633 30 108 6452
current assets
trade and other receivables 17366––– 17366
cash and cash equivalents 111––– 111
total current assets 17477––– 17477
current liabilities
financial liabilities 2031 – – – 2031
trade and other payables 7033 373 – – 7406
current income tax liabilities 792 – – – 792
total current liabilities 9856 373 – – 10229
net current assets 7621 373 – – 7248
total assets less current liabilities 13302 260 30 108 13700
noncurrent liabilities
financial liabilities 1189 – – – 1189
retirement benefit obligations 1217 521 – – 1738
total noncurrent liabilities 2406 521 – – 2927
net assets 10896 261 30 108 10773
capital and reserves
share capital 4283––– 4283
share premium 1613––– 1613
treasury shares 603 – – 108 495
share option reserve 145––– 145
pension reserve 1217 1217–––
retained earnings 6675 1478 30 – 5227
total equity shareholders’ funds 10896 261 30 108 10773 
notes to the financial statements
continued
86 cyril sweett group plc
annual report and accounts 2008
financial statements 34 reconciliation of net assets and profit under uk gaap to ifrs continued
reconciliation of equity at 31 march 2007
fair value elimination of
employee investment negative restated in
reformatted benefits adjustment goodwill other accordance
uk gaap ias 19 ias 39 ifrs 3 reclassifications with ifrs
group £’000 £’000 £’000 £’000 £’000 £’000
noncurrent assets
intangible assets 2966 – – 30 262 3258
plant equipment 
fixtures and fittings 1503––– 262 1241
financial assets 
available for sale 4 – 600 – 300 904
investments accounted for 
using equity method 28––– 192 220
deferred taxation 133 482 180 – – 435
trade and other receivables 300––– 300 –
total noncurrent assets 4934 482 420 30 192 6058
current assets –
trade and other receivables 21731 – – – 21731
cash and cash equivalents 1221–––– 1221
total current assets 22952–––– 22952 
current liabilities
financial liabilities 3960 – – – 3960
trade and other payables 8423 396 – – – 8819
current income tax liabilities 460 –––– 460
total current liabilities 12843 396 – – – 13239
net current assets 10109 396 – – – 9713
total assets less 
current liabilities 15043 86 420 30 192 15771
noncurrent liabilities 
financial liabilities 481 –––– 481
retirement benefit obligations 848 363 – – – 1211
total noncurrent liabilities 1329 363 – – – 1692
net assets 13714 277 420 30 192 14079
capital and reserves
share capital 4451–––– 4451
share premium 1923–––– 1923
treasury shares 462 – – – 108 354
share option reserve 154–––– 154
pension reserve 848 848––––
retained earnings 8496 1125 420 30 84 7905
total equity shareholders’ funds 13714 277 420 30 192 14079 
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
87 34 reconciliation of net assets and profit under uk gaap to ifrs continued
reconciliation of equity at 31 march 2007
elimination of
employee negative restated in
reformatted benefits goodwill other accordance
uk gaap ias 19 ifrs 3 reclassifications with ifrs
company £’000 £’000 £’000 £’000 £’000
noncurrent assets
intangible assets 2673 – 30 262 2965
plant equipment fixtures and fittings 1437 – – 262 1175
financial assets available for sale 1082 – – 216 1298
investments accounted for 
using equity method 108 – – 108 –
deferred taxation 133 482 – – 615
total noncurrent assets 5433 482 30 108 6053
current assets
trade and other receivables 19774––– 19774
cash and cash equivalents 256––– 256
total current assets 20030––– 20030 
current liabilities
financial liabilities 3907 – – – 3907
trade and other payables 7265 396 – – 7661
current income tax liabilities 263 – – – 263
total current liabilities 11435 396 – – 11831
net current assets 8595 396 – – 8199
total assets less current liabilities 14028 86 30 108 14252
noncurrent liabilities 
financial liabilities 481 – – – 481
retirement benefit obligations 848 363 – – 1211
total noncurrent liabilities 1329 363 – – 1692
net assets 12699 277 30 108 12560
capital and reserves
share capital 4451––– 4451
share premium 1923––– 1923
treasury shares 462 – – 108 354
share option reserve 154––– 154
pension reserve 848 848–––
retained earnings 7481 1125 30 – 6386
total equity shareholders’ funds 12699 277 30 108 12560 
notes to the financial statements
continued
88 cyril sweett group plc
annual report and accounts 2008
financial statements 34 reconciliation of net assets and profit under uk gaap to ifrs continued
reconciliation of net income for the year ended 31 march 2006
restated in
reformatted holiday pay other accordance
uk gaap ias 19 reclassifications with ifrs
group £’000 £’000 £’000 £’000
turnover 44803 – – 44803
cost of sales 28998 – – 28998
gross profit 15805 – – 15805
indirect costsadministrative expenses 11523 35 – 11558
operating profit 4282 35 – 4247
finance income 54 – – 54
finance costs 171 – – 171
share of profits of associates 51 – 3 48
profit on sale of investment in associate ––––
profit before taxation 4216 35 3 4178
taxation 1498 11 3 1484
profit for the year 2718 24 – 2694 
restated in
reformatted holiday pay accordance
uk gaap ias 19 with ifrs
company £’000 £’000 £’000
turnover 43770 – 43770
cost of sales 28998 – 28998
gross profit 14772 – 14772
indirect costsadministrative expenses 10777 35 10812
operating profit 3995 35 3960
finance income 78 78
finance costs 171 – 171
profit before taxation 3902 35 3867
taxation 1457 11 1446
profit for the year 2445 24 2421 
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
89 34 reconciliation of net assets and profit under uk gaap to ifrs continued
reconciliation of net income for the year ended 31 march 2007
pensions
and post
retirement restated in
reformatted holiday pay benefits other accordance
uk gaap ias 19 ias 19 reclassifications with ifrs
group £’000 £’000 £’000 £’000 £’000
turnover 52061––– 52061
cost of sales 33287 – – – 33287
gross profit 18774––– 18774
indirect costsadministrative expenses 14092 23 77 – 14038
operating profit 4682 23 77 – 4736
finance income 135 77 – 58
finance costs 322 – – – 322
share of profitloss of joint venture 80 – – 84 4
profit on sale of investment in associate 85––– 85
profit before taxation 4500 23 – 84 4561
taxation 1377 7 – – 1370
profit for the year 3123 16 – 84 3191 
pensions
and post
retirement restated in
reformatted holiday pay benefits accordance
uk gaap ias 19 ias 19 with ifrs
company £’000 £’000 £’000 £’000
turnover 49256 – – 49256
cost of sales 32116 – – 32116
gross profit 17140 – – 17140
indirect costsadministrative expenses 13384 23 77 13330
operating profit 3756 23 77 3810
finance income 86 77 9
finance costs 321 – – 321
profit on sale of investment in associate 110 – – 110
profit before taxation 3631 23 – 3608
taxation 1220 7 – 1213
profit for the year 2411 16 – 2395
notes to the financial statements
continued
90 cyril sweett group plc
annual report and accounts 2008
financial statements 34 reconciliation of net assets and profit under uk gaap to ifrs continued
explanation of reconciling items between uk gaap and ifrs
ias 19 revised – employee benefits
retirement benefit obligations deferred tax previously netted off the group’s pension scheme liability arising on the difference between
the fair value of the groups pension scheme assets and liabilities in the balance sheet has been recognised separately as an asset 
at 1 april 2004 the pension scheme deficit amounted to £2208000 and the related deferred tax asset was £662000 this adjustment 
had already been recognised under uk gaap in years subsequent to 2004 following the adoption of frs 17
holiday pay an accrual as at 31 march 2004 of £284000 and the related deferred tax asset of £85000 has been recorded to recognise
annual leave entitlement movements representing the increase in annual leave entitlement in subsequent periods have been recorded
in income statements and balance sheets 
ifrs 3 – business combinations
previously recognised negative goodwill of £30000 as at 1 april 2004 has been credited to retained earnings
ias 10 – events after the balance sheet date
dividends that are declared after the balance sheet date are not recognised as a liability at the balance sheet date as at 1 april 2004 
an adjustment of £420000 was made to remove the proposed dividend from current liabilities with a corresponding increase in retained
reserves this adjustment had already been recognised under uk gaap in years subsequent to 2004 following the adoption of frs 20
ias 39 – financial instruments recognition and measurement
investments held at cost under uk gaap have been recorded at fair value
loans and receivable recorded as debtors amounts due after more than one year under uk gaap have been recorded as 
financial assets
ias 38 – intangible assets
computer software classified as tangible fixed assets under uk gaap are deemed to be intangible assets under ifrs
ifrs 2 – sharebased payments
frs 20 – sharebased payments was adopted under uk gaap for the year ended 31 march 2007 adjustments have been recorded 
to recognise the share option reserve as at 31 march 2004 of £27000 and a charge for share–based payments of £55000 in the year 
to 31 march 2005
ias 32 – financial instruments disclosure and presentation
the joint venture jones sweett international limited holds shares in cyril sweett group plc on adoption of international accounting
standards this investment previously deemed to represent treasury stock and a reduction from equity shareholders’ funds has been
reclassified as part of ‘investments accounted for using the equity method’ dividends received by the joint venture from cyril sweett
group plc previously deemed to be cancelled have been recognised as income of the joint venture
financial statements
cyril sweett group plc
annual report and accounts 2008
financial statements
91 company registration number 03452251
directors f r ives frics dipprojman chairman
d l webster mba bsc mrics mapm chief executive officer
m kemsley fca mcmi mbifm frsa chief financial officer
d r pitcher bsc frics dipprojman chief operating officer
m j g henderson fca frsa khs nonexecutive
r s mabey cmg fciob frsa nonexecutive
p n woollacott bsc hons physics nonexecutive
secretary j p murray fcca
registered office 60 gray’s inn road
london
wc1x 8aq
nominated advisor and broker brewin dolphin securities limited
12 smithfield street
london
e1a 9bd
auditors pricewaterhousecoopers llp
1 embankment place
london
wc2n 6rh
bankers bank of scotland plc
the mound
edinburgh
eh1 1yz
registrars capita registrars
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
wwwcyrilsweettcom 
investor information
92 cyril sweett group plc
annual report and accounts 2008
investor information contents
business review
who we are 01
what we do 02
financial highlights 04
business highlights 04
chairman’s statement 05
chief executive’s review 06
people and quality service 12
market outlook 16
project management 20
quantity surveying 22
specialist services and 
management consultancy 24
financial review 26
governance
board of directors 30
report of the directors 32
statement of directors’ responsibilities 35
corporate governance 36
directors’ remuneration report 39
independent auditors’ report 42
financial statements
consolidated income statement 44
statement of recognised income 
and expense 45
consolidated balance sheet 46
company balance sheet 47
cash flow statement 48
notes to the financial statements 49
investor information
investor information 92
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cyril sweett group plc
annual report and accounts 2008
cyril sweett group plc
annual report and accounts 2008 annual report and accounts 2008 cyril sweett group plc global knowhow
cyril sweett group plc
registered in the united kingdom
company registered number 03452251
vat number 707 3179 38
registered office
60 gray’s inn road
london wc1x 8aq
wwwcyrilsweettcom
 australia
 france
 india
 singapore
 spain
 uae
 uk  ireland
global 
knowhow
cyril sweett group plc
annual report and accounts 2008


Summary:
 introduction
cyril sweett as a top ten international construction and property
consultancy offers expert advice in project management quantity
surveying management consultancy and a comprehensive range 
of specialist services 
the group services a range of construction and property related
projects across public and private sectors including offices retail
and mixed use health education prisons residential life sciences
transport and infrastructure the strength and resilience of cyril
sweett continues to be based on the group’s diverse and balanced
sector penetration combined with wide uk and international
geographical coverage this enables the group to manage the
cycles of both public and private sector investment by being equally
responsive to opportunities and threats in each at the same time
the skills mobility and working practices of our people enable
them to operate flexibly across sectors and project locations 
the group is structured geographically to ensure effective regional
management and local service delivery the group has nineteen
branch offices in the uk three more in europe two in the middle
east one in india three in australia and one in singapore these
are further supported by an alliance network offering services in
over 20 other locations throughout the remainder of europe the
middle east and asia pacific regions 
the group has a number of differentiators a strong position in its
key markets which are well balanced between the public and private
sectors the cyril sweett brand which has a strong reputation and is
recognised as a consultant to large projects and a strong ethos of
employee ownership which sets us apart from our competitors 
we aim to develop each employee to maximise their full potential
employee ownership clearly drives crossselling throughout the
group encourages new people to join and supports retention of 
the best people we benefit from having clear visibility of future
earnings our order book which stands at £86m is the strongest 
it has ever been as a result of our drive to diversify we adopt a
conservative approach to valuing our order book and exclude
anticipated contracts under framework agreements the increasing
rationalisation of supply chains and moves towards framework
06 cyril sweett group plc
annual report and accounts 2008
business review
strategy and
performance
dean webster chief executive officer chief executive’s review
cyril sweett group plc
annual report and accounts 2008
business review
07 07
“cyril sweett is a diversified business
operating in both the public and private
sectors and we are well positioned 
to capitalise on new growth sectors 
in the market both in the uk and
internationally”
agreements combined with our ability to deliver on major long
term projects means we are in a position to accurately predict
future revenues and adapt to changing circumstances 
the flotation raised £84m net of expenses with first mover
advantage by being the only quoted consultancy amongst our
major uk competitors we are in a strong position to be a leading
player in the consolidation of what is currently a highly fragmented
construction consultancy market with cash on the balance sheet
strong banking support and a proven acquisition model we are
able to continue to make further significant acquisitions both in the
uk and overseas
group strategy
we operate in markets where there are two main opportunities for
growth in the uk consolidation of a highly fragmented market has
begun and is expected to accelerate over the short to medium
term internationally the growth in construction activity in
developing markets coupled with high demand for ukstyle
quantity surveying and project management expertise creates a
significant opportunity success in implementing our international
diversification strategy is evidenced by the growth in our overseas
order book
key strengths
market position
we operate across a wide number of areas split almost equally
between the public and private sectors in those in which we are
preeminent such as health public private partnerships ppp 
and retail we offer a much wider service offer than our competitors
with dedicated and experienced teams in all of our sectors together
with an excellent uk network of offices we are well placed to
increase our market share we are rapidly expanding our overseas
coverage and are building a strong order book with both new and
existing clients the cyril sweett brand has a strong reputation 
and we are known for our ability to undertake large projects
people development
our ethos of employee ownership provides a clear differentiator
between us and our competitors we believe that if our people
invest in our company we should invest in our people we aim to
develop each and every member of staff to their full potential and
to do the same for new staff when they join the group the sense 
of ownership that our staff have in the company drives not only 
a commitment to understand and to help our clients but also a
willingness to work collaboratively with colleagues we see that
employee ownership drives crossselling throughout our company
encourages new people to join the business and supports our
desire to improve retention levels 
visibility of earnings
our order book is the strongest it has ever been as a result of our
drive to diversify – offering more services across more markets
both in the uk and overseas the increasing rationalisation 
of supply chains and moves towards framework agreements
combined with our ability to deliver on major long term projects
means we can accurately predict future revenues across our
operation and adapt to changing circumstances 
growth opportunities
our flotation raised £84m of cash with bank support and an
acquisition model based on a mixture of cash and shares we 
are able to make further significant acquisitions both in the uk 
and overseas
with first mover advantage by being the only quoted consultancy
amongst our competitors we are in a strong position to be a
leading player in the consolidation of what is currently a highly
fragmented construction consultancy market
proven track record
year on year the group’s revenues have continued to grow with 
an average increase of over 18 per annum – and profits growing
at a similar rate we are still experiencing strong demand in most
sectors and in fact still find the sourcing of good new people to be
our biggest challenge if therefore there is a softening in the uk
market we see this as an opportunity to source new recruits 
more easily increase market share where we have competitive
advantage source acquisitions at more competitive prices and
switch resources flexibly from location to location  review of operations
cyril sweett has achieved outstanding organic growth since its
management buy out in 1998 a main focus for the group is to
continue on this course through further strengthening its market
share in identified growth sectors education health transport 
and infrastructure industrial prisons retail and pfippp and to
develop services in new growth markets such as waste utilities
and energy in both the uk and overseas
during 200708 we made significant progress towards achieving
this strategic priority organic revenue growth in the uk market
was 14 and overseas revenues grew by 79 we successfully
managed to crosssell specialist and management consultancy
services to existing clients and have seen a 35 uplift over 200607
in this area 19 of uk income was generated through frameworks
and we secured further agreements with several clients including
the office of government commerce home office estate société
générale and network rail we also secured projects in two new
market areas waste where we are part of a consortium to build
and operate one of the most advanced waste treatment projects in
europe and nuclear where we are supporting a client delivering 
a power station project in france 
growth in our established locations and increasing market share
has enabled us to move into larger premises in birmingham
bristol edinburgh and glasgow and we have opened new offices 
in abu dhabi dubai and mumbai we have secured major projects
including yas island and jumeirah village in the uae and have an
enviable pipeline of future work 
cyril sweett has been extremely active in providing a broad range 
of services to the education and health sectors including procure 21
and building schools for the future we have also been selected as
preferred bidder as part of the education for inverclyde consortium
and reached financial close on the dumfries and galloway council
smarter schools ppp project
since the ipo we have made significant progress in our strategy 
of growth through acquisition acquiring the remaining 50 of the
shares of cyril sweett international formerly jones sweett
international in the middle east this business expanded to 35
people during its first year of operations and has established a
healthy order book in the uk we acquired nisbet llp which has
provided new clients in the public sector especially in education
together with further branch offices in the south west of england
in south wales we acquired roger richards and finally we
acquired burns bridge headquartered in australia with branch
offices in three cities together with branches in singapore and 
abu dhabi we expect each acquisition to be earnings enhancing
and to provide a platform for further growth not just locally but
throughout their wider regions i am pleased to be able to report
that integration of these businesses is on plan
our strategy sees us increasing overseas activity fivefold by 2010
by which time we expect to be delivering at least 25 of group
revenues from the middle east india and australasia overseas
revenue by geographical destination during 200708 reached 
£94m and was 79 higher than 200607 and represented 15 
of group revenues
we set up a dedicated office in mumbai in order to capitalise on 
the emerging construction market in india and have aligned our
structure internally and created a separately managed international
business with dedicated resources infrastructure and processes 
in order to support the focus on international growth significant
international projects include masdar and zabeel corporate park
in the middle east raffles hotel in singapore freestyle park in
moscow and hospital san dureta in spain 
during 200708 the board made progress in improving operating
profit margins reducing lockup debtor and work in progress days
and monitoring the pricing and risks associated with all major
projects efficiency initiatives throughout the business have
proportionally reduced indirect costs and a new package of
efficiency measures will not only improve our processes and
delivery systems but also benefit bottom line performance to
address a tightening uk marketplace 
recruiting and retaining the right people is one of the key issues
this business faces we seek to recruit and retain high performing
people to ensure that our reputation for excellence is maintained
during 200708 we appointed a group hr director to drive 
the strategy 
over 58 of our colleagues are shareholders which we believe
aligns the interests of both our internal and external shareholders
strategy and 
performance 
continued
08 cyril sweett group plc
annual report and accounts 2008
business review to deliver a common goal following the flotation 200 new
employees joined the group and the percentage of employee
shareholders is targeted to grow markedly we achieved
recognition when we won the 2007 award for best share
ownership plan in the category of company with fewer than 1500
employees from the european centre for employee ownership
we continue to prioritise the delivery of top quality service to our
clients and have established a dedicated service delivery team to
coordinate service quality levels across the group the service
delivery team is responsible for deploying quality management
systems and project tool kits ensuring that all parts of the
business operate on a common platform continually improve and
innovate and thereby add value to our clients we have introduced 
a new structure for operational delivery each team leader 
has responsibility and authority for project success resource
management and client satisfaction and we are training all key
account management teams to deliver new techniques and
approaches to maximise crossselling client satisfaction and 
client retention 
the future
we are confident that we can achieve our strategic goal of delivering
£100m of revenue by 2010 the year ahead will see us continue to
build a competitive position in growth sectors where we are strong
and extend our public sector exposure adapting our existing
resources to support the new growth areas that our market led
research dictates we will continue with the development of our 
uk regional businesses in order to develop top three status in 
each location maximising cross selling and will apply the same
principles to build our businesses in europe and the middle east
and further develop our presence in the gulf states india
southern asia and australia 
we are evaluating a number of earnings enhancing acquisition
opportunities to accelerate growth in our uk and international
branch network acquisitions will come with rigorous riskbased
due diligence and will be accompanied by robust integration
planning and execution
our strategy of combining acquisition and organic growth to build 
a global business is on track
chief executive’s review
09 cyril sweett group plc
annual report and accounts 2008
business review
09
“our strategy sees us increasing
overseas activity fivefold by 2010 by
which time we expect to be delivering
at least 25 of group revenues from
the middle east india and australasia“ 10 cyril sweett group plc
annual report and accounts 2008
business review
strategy and 
performance 
continued
investment case
1 clear three year plan to deliver shareholder value as part of
longterm growth strategy
the management has a clear business plan for the three years 
to march 2010 which should deliver substantial returns to
shareholders the plan sets a target of doubling revenues to 
in excess of £100m over the three year period in the longer
term management’s ambition is to create a much larger
international consultancy
2 highly fragmented market presenting significant acquisitive
growth opportunities
the quantity surveying and project management supply chain 
is very fragmented with up to 500 practices operating in the uk 
and it is also highly fragmented internationally cyril sweett has
potential acquisition firepower and management is reviewing a
pipeline of acquisition opportunities to be a consolidator in the
market although some of the larger construction consultants 
have made acquisitions this has been relatively limited because
the majority of the larger players and almost all of the larger
independent ones are partnerships with relatively limited access
to capital to fund acquisitive growth cyril sweett was the first
quoted player and will have a significant competitive advantage in
terms of its ability to consolidate the sector 
3 strong management team with an excellent track record
the cyril sweett management team includes a strong group of
experienced leaders with backgrounds in the construction and
property industry many members of the management team have
been working in the company since the mbo in 1998 and have
demonstrated a proven track record of consistently delivering 
growth for the company their depth of overall business experience
provides cyril sweett with a strong and talented senior management
team that has been instrumental in the company’s success 
the management team continues to be led by chairman francis ives
4 strong order book and high levels of repeat business
the order book currently stands at £86m up from £67m at
september 2007 28 of the order book comprises nonuk work
which represented just 15 of fy 08 revenue suggesting that fy09
will see further strong growth in overseas revenues following the
recent jsi middle east and burns bridge australiaasiamiddle
east acquisitions the order book figure excludes potential work
under frameworks which accounted for 18 of fy07 revenue the
order book only includes work already allocated under frameworks
in total the group has around 50 frameworks formal and informal
including royal bank of scotland goldman sachs jp morgan
chase english partnerships defra hm prison service the office
of government commerce and the home office chief executive’s review
11
5 healthy margins
in fy08 cyril sweett generated an operating profit margin of 93
margins have been consistently around this level for the last three
years this is in large part due to cyril sweett’s higher average fees
generated per fee earner which more than offsets the impact 
of higher employee costs 
6 broad sector exposure with healthy spread of work between
private and public sectors
a key focus for management since the mbo has been to create a
more broadly based business in terms of services delivered range
of sectors serviced and number of clients a key feature of cyril
sweett’s business is the combination of staff with strong sector
skills supported by a policy of transferability of key service oriented
staff between different sectors this means that the group should
be able to react to market trends in individual sectors to ensure
that growth targets are achieved the group has shifted its focus
towards the public sector and international activity in 2007 and has
therefore limited exposure to any potential downturn in the uk
private sector following recent turbulence in the financial markets
7 strong balance sheet and significant banking facilities
cyril sweett has a strong balance sheet providing significant scope
to pursue both organic and acquisitive growth opportunities 
dean webster chief executive officer
diversified 
sector portfolio
professional
service white
collar consulting
strategies
strategies
partnership and
joint venture
focus on core 
skill set
aligning the
business to
growth markets
longterm
relationships
framework
agreements
recruit and 
retain high
performing 
people
acquisition
strategy
key account
management
focus
structured
geographic
expansion
programme
project 
management
quantity
surveying
specialist
services
management
consultancy
proven growth business model 
“the management has a clear 
business plan for the three years to
march 2010 which should deliver
substantial returns to shareholders“
cyril sweett group plc
annual report and accounts 2008
business review
11