SWP slips into loss but puts 'transitional' year behind it

10th Dec 2013 12:42

Spain-focused construction engineer SWP Group put a year of transition behind it, reducing borrowings by a quarter and increasing profit margins. The AIM-listed company produced a £0.36m loss before discontinued items on sales down 32% to £14.3m. The continuing economic straits in Spain forced management to close the Madrid business of its Fullflow rain-management arm.Executive Chairman Alan Walker said the closure allows the Fullflow to embrace improving market conditions in other areas where it believes have potential for growth. He said: "With this year of transition now consigned to history, group management is implementing key initiatives and development plans designed to promote our brands in the home market and internationally."Ulva, SWP's oil and gas focused segment, was "solid" but lower than expected due to a major contract slippage. Walker pointed to a £1.6m capital expenditure project to install a state of the art production line at its Telford plant to significantly improve manufacturing efficiencies.Overall he said the stronger economic outlook has allowed order books in the group's various businesses to recover and provides the stimulus for improved levels of profitability in future.SWP shares were up 7.3% to 7.38p as close neared on Tuesday.OH