Cyril Sweett, an international construction and property consultancy, is pleased to announce that Cyril Sweett Australia Pty Limited, its wholly owned subsidiary, has agreed to acquire the entire share capital of Burns Bridge Holdings Pty Limited and its subsidiary companies (“Burns Bridge”), an Australian based project management business. Burns Bridge operates in Australia, Singapore and Abu Dhabi.  The completion date for the acquisition is currently scheduled for 1 April 2008 and the directors of Cyril Sweett anticipate that the acquisition will be earnings enhancing in the financial year ending 31 March 2009.

The initial consideration is to be satisfied by a cash payment of AUD 2.25 million (£1.03 million) and the balance by the transfer of 493,534 ordinary shares of 10 pence each in Cyril Sweett (“Ordinary Shares”).  Based on Cyril Sweett’s closing share price on 25 March 2008 of 89.5 pence per Ordinary Share, the total initial consideration will be AUD 3.21 million (£1.47 million) which represents a multiple of 2.6 times normalised Earnings before Interest and Tax (EBIT) for the twelve months to 30 June 2007.  Deferred consideration will be payable contingent upon the financial performance of Burns Bridge in the 12 months to 30 June 2008 and the 12 months to 30 June 2009. The directors of Cyril Sweett anticipate, based on current forecasts, that the deferred consideration will be approximately AUD 7.80 million (£3.58 million) and that, in any event, it will not exceed AUD 11.79 million (£5.41 million).

The total consideration is therefore expected to be approximately AUD 11.01 million (£5.05 million) and in any event, will not exceed AUD 15.0 million (£6.88 million).

The audited financial statements of Burns Bridge for the financial year ended 30 June 2007 recorded turnover of AUD 15.4 million (£7.0 million), a profit on ordinary activities before tax of AUD 1.5 million (£0.7 million) and net assets of AUD 0.8 million (£0.4 million).

Burns Bridge was established in 1986 and is headquartered in Melbourne, Australia. Its current board comprises four directors; Wes Gault, Ray Bongiorno and the two founders Phil Burns and Tony Bridge.  They will all continue with Burns Bridge post-completion and will help implement the detailed integration plan.  Burns Bridge has a total of 65 employees based in Melbourne, Sydney, Brisbane, Singapore and Abu Dhabi.

Burns Bridge’s operations complement those of Cyril Sweett’s in providing project management advice in particular to the health and retail market.  The Private Finance Initiative (PFI) is in its infancy in the Australian market and Cyril Sweett, having significant market expertise in delivering PFI technical advisory services, is well placed to export its sector skills and expertise to this market.

The Singapore office will provide Cyril Sweett with a strategic base to grow its Asia-Pacific business. The combination of both businesses experience in the Middle East market will create critical mass in order to compete more effectively in that market.

Burns Bridge has a strong track record of project wins and repeat work specialising in the provision of project management services to the health, hospitality, industrial, local Government and retail sectors.

Burns Bridge has an impressive client list including Amity Group, Barclays Capital, Coca-Cola Amatil, Coles Myer, Energy Australia, GPT Group, New South Wales Health and Raffles Hotel.

In line with Cyril Sweett’s stated strategy to be a major international consultancy, as outlined at the time of its flotation on AIM in October 2007, the acquisition will be a strong platform to assist with the growth of Cyril Sweett’s international business.  The company will trade as Burns Bridge Sweett.

Dean Webster, Chief Executive Officer, Cyril Sweett Group plc said:

“We are successfully developing an extensive capability in the Middle East, India and Australia and are delighted to announce the acquisition of Burns Bridge, which will significantly expand our international operations.  We believe the deal will create significant value for shareholders as the two businesses are highly complementary – both being project management specialists in the health and retail sectors. We anticipate the acquisition will be earnings enhancing in the first full year.

We remain confident of the Group delivering £100m of turnover by 2010.”

Philip Burns, Chairman of Burns Bridge said:

“We are thrilled to be joining the Cyril Sweett Group.  Importantly the businesses have similar values and internal structures and I speak for my entire team when I say that we are very much looking forward to the next chapter of growth for our business.”