In a trading statement covering the first half, the board said the UK which accounts for half the business was performing well.
But Sweett warned that it was reducing its exposure in the Middle East and expected to take a hit in Australia unless trading recovered in the second half.
Sweett said there would also be an exceptional charge in the half-year accounts covering the cost of its investigation into fraud allegations against a former employee in the Middle East.
John Dodds, Chairman of Sweett Group, said: “Since becoming chairman in August, I have conducted a thorough review of the group’s business.
“I am looking forward to taking the business forward with a greater focus on profitability and cashflow.”
He said that the Sweett board continued to monitor closely its Australia business where, without a significant improvement in trading over the second half of the year, it was likely that an impairment would have to be made in the group’s results for the year ending 31 March 2015 against the carrying value of £3m of goodwill.
He added: “The Middle East remains a challenging market for the group and we remain committed to the previously announced strategy of reducing and restricting our exposure to the region.”
The group’s order book stands at £107m after appointments for Jaguar Land Rover, the BBC and schemes at both Manchester and Liverpool universities.
Sweett said it had also secured a series of infrastructure appointments with HS2 and Battersea Power Station.