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Sweco experienced a slowdown in the U.K. during the fourth quarter, but the Swedish engineering consultancy nonetheless managed to close out the last three months of 2023 with a 15% sales uplift.

Sweco’s fourth quarter EBITA of 654 million kronor was down 4% from a year earlier. The main reasons: writedowns on the value of engineering projects in the U.K., plus the impact of a local organizational restructuring initiative. The firm says that the effort, which has seen it cut its headcount and office footprint, is designed to “position our UK business toward existing and new growth segments.”

The consultancy’s other regional business units fared considerably better. Sweco says its teams in Belgium, the Netherlands, Denmark and its home country of Sweden delivered strong EBITA performance.

Sweco’s revenue story was also rosy in the fourth quarter. The firm’s net sales ticked up 15% on a year-over-year basis to 7.717 billion kronor, fueled by strong demand across multiple segments. Sweco boss Åsa Bergman said in prepared remarks that the firm experienced momentum in the energy, water, environmental services and transport infrastructure markets.

Sweco’s acquisition strategy was also a driving factor behind its sales growth. The firm made no fewer than 10 acquisitions last year that added 1.8 billion kroner to its top line and over 1,200 professionals to its payroll.

M&A will continue to play a big role in Sweco’s growth plans during the current quarter and beyond. “In January 2024, we announced the acquisition of Econsultancy, one of the leading environmental consultancies in the Netherlands,” Bergman told investors in her prepared remarks. “This acquisition is in line with our ambition to reach a top three market position in the Netherlands with a leading sustainability offering.”

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