BQS Baqus Group

 

TIDMBQS 
 
RNS Number : 7174H 
Baqus Group PLC 
26 February 2010 
 

For Release 
07.00 
26 February 2010 
 
                                BAQUS GROUP PLC 
                            ("Baqus" or "the Group") 
 
                                 Trading Update 
 
 
Baqus Group plc, one of the leading building consultancy and quantity surveying 
groups, announces the following trading update in advance of its interim results 
for the six months to 31 December 2009. 
 
As previously indicated in the Group's final results which were announced in 
October 2009, trading in the construction industry has continued at a subdued 
level. Projects in both the public and private sectors have been subject to 
delay and in some cases cancellation largely due to Government cut-backs and a 
lack of bank lending for many construction schemes.  Added to this, increased 
competition and reduced overall levels of activity have led to a general 
reduction in margins. 
 
As a result of these tough trading conditions, the Group's results for the year 
ending 30 June 2010 are now expected to be below current market expectation. 
This is in part due to deferred or cancelled projects in the public sector and 
private sector schemes held up by the reluctance of funders to commit. The 
delayed projects are still expected to come to fruition, albeit not in the 
Group's current financial year.  In addition, exceptional costs associated with 
a reduction in the Group's cost base will impact the results. 
 
A combination of the Group's positive cash position, GBP0.5 million in 
operational savings made in the last 12 months and focus on retaining the core 
of its skilled workforce mean the Group is well positioned to weather the 
current trading environment and benefit from any improvement in the sector. 
 
In addition, Baqus continues to secure appointments on long-term framework 
contracts, Private Finance Initiatives (PFI) and is also working on a number of 
hotel projects with leading operators and specialist developers. 
 
At this stage, the Group does not intend to recommend a dividend payment. 
 
Baqus will announce its interim results for the six months ended 31 December 
2009 on 24 March 2010. 
Commenting on the trading update, Clive Sayer, Chief Executive of Baqus Group, 
said: "It is thanks to the Board's experience of previous downturns that we have 
acted quickly to manage our cost base, which we have successfully reduced by 
GBP500,000 per annum whilst remaining appropriately staffed given the current 
economic climate." 
"The Group is now positioned in such a way that it can react effectively to any 
improvement in the wider construction industry when it occurs.  I remain 
confident in Baqus' future prospects." 
Contact: 
 
Baqus Group plc 
Clive Sayer (Chief Executive) 
07967 132 221 
Patrick Lineen (Finance Director) 
07818 034 452 
 
Seymour Pierce (Nominated Adviser and Broker) 
Mark Percy / David Foreman                                                  020 
7107 8000 
 
Cubitt Consulting (Financial Public Relations Advisers) 
Chris Lane / James Verstringhe                                              020 
7367 5100 
 
Background Note: 
 
Baqus was admitted to trading on AIM on the 14 December 2007, having raised 
GBP1.75 million through a placing of 17,500,000 Ordinary Shares. 
 
Baqus is a national building consultancy and quantity surveying group offering 
construction cost consultancy, project management and building surveying 
services to clients in the UK. The Group works across a number of business 
sectors including: health, education, leisure, hospitality, affordable housing, 
residential, commercial and conservation. Clients include local authorities, 
central government, NHS, residential Housing Associations, commercial companies 
and developers. 
 
The Quantity Surveying Market in the UK, estimated to be worth in excess of GBP1 
billion, is highly fragmented and dominated by a small number of major players, 
which the Baqus Group Directors believe make it ripe for consolidation. Since 
the Group's admission to AIM, they have been pursuing a strategy of acquiring 
small to medium sized Quantity Surveying practices across the country, the most 
recent of which is Nigel Rose Group. Previous activity includes the acquisition 
of Sworn King and Partners in 2008. Once acquired, the practices are 
incorporated into the wider Group with a particular emphasis on exploiting 
opportunities for operational synergies with existing business units. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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