REG - Aukett Swanke Group - Commercial Update

Aukett SwankeAnnouncement

02/02/2024 07:00

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RNS Number : 7819B  Aukett Swanke Group PLC  02 February 2024

 

 

2 February 2024

 

Aukett Swanke Group Plc

("Aukett Swanke", the "Company," "ASG", or, together with its subsidiaries,
the "Group")

Commercial Update

 

Aukett Swanke (AIM: AUK), the group providing Smart Buildings, Architectural
and Design Services, is pleased to provide the following pre-close update
ahead of its audited results for the year to 30 September 2023 ("FY 2023"),
expected to be announced in March 2024.

Trading Update

Unaudited management accounts indicate that in the year to 30 September 2023
the Group made a small pre-tax profit, before acquisition-related exceptional
items, on revenue of approximately £14 million (FY 2022: £7.1 million). For
the current year (FY 2024) we expect the Group's performance to remain second
half weighted.

Bank Finance and Property Update

The Company is also pleased to report a new 12-month funding facility for its
subsidiary Torpedo Factory Group Limited ("TFG"). This is secured on The Old
Torpedo Factory (the "Property") in west London, which is currently listed for
sale.

The new facility comprises a £1.40 million loan, of which £1.36 million is
interest only and £0.04 million is repayable on a monthly basis. This
refinances and replaces an existing mortgage on the Property which was due to
expire on 7 February 2024.

Offers have been received for the Property but no sale has yet been agreed.
The new facility will allow the Group to continue to progress these and other
discussions to sell the Property in an orderly manner. The Property was
independently valued at £3.08 million in July 2023, but in line with current
market conditions the directors anticipate the sale price will be below this
level. The Company will further update on progress in due course.

TFG also has approximately £0.9 million of CBILS-backed loan finance
outstanding, which is repayable monthly over the period to July 2026. This is
unaffected by the new facility.

The Group's only other bank borrowings are a separate CBILS-backed loan of
approximately £0.1 million, which is due to be fully repaid by May 2024, and
an overdraft facility of £250,000.

Disposal of Turkish Operations

The Group also reports that on 27 December 2023 it completed the disposal of
its loss-making Turkish subsidiary, Aukett Swanke Mimarlik ("ASM", previously
Swanke Hayden Connell Mimarlik) to ASM's management, for a nominal sum. ASM
has entered into a Name Licence Agreement, which provides for licence fees to
be paid based on revenue generated. Revenues, trading losses, and assets
subject to the disposal are not material given the Group's size. The Group
will record a loss on disposal which will be less than £0.1 million.

The Group currently retains its two German architecture investments, which
remain profitable and from which the Group receives management fees and
dividends.

Nick Clark, Chief Executive, commented:

"We are pleased to have returned the Group to full year operational
profitability after several years of losses. Looking ahead to the current
financial year, we expect the enlarged Group to report record revenues, with
the second half performance as usual stronger than the first half. The
successful sale of our freehold property would eliminate our net debt,
enabling us to accelerate our smart buildings strategy."

 

Contacts

Aukett Swanke Group Plc
 
       +44 (0) 20 7843 3000

Clive Carver,
Chairman

Nick Clark, Chief
Executive
 

 

Strand Hanson Limited, Financial and Nominated Adviser
                    +44 (0) 20 7409 3494

Richard Johnson, James
Bellman

 

Zeus Capital Limited, Broker
 
   +44 (0) 20 3829 5000

Simon Johnson, Louisa Waddell

 

Investor/Media
 
                 + 44 (0) 7979 604 687

Chris Steele

 

About Aukett Swanke Group plc

Aukett Swanke Group has a strong foundation in architectural services and is
on a transformative journey to become a London-listed provider of Smart
Buildings and related services. ASG are uniquely positioned to ensure the
technical systems that run modern premises are designed as an integral part of
the structure, from the outset.

For more information go to https://www.aukettswankeplc.com
(https://www.aukettswankeplc.com)

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No. 596/2014 as it forms part of United Kingdom domestic law by virtue of
the European Union (Withdrawal) Act 2018, as amended by virtue of the Market
Abuse (Amendment) (EU Exit) Regulations 2019.

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