30 October 2009
International multi-disciplinary consultant, WYG Group, has announced a £12 million profit in its annual results together with a proposed refinancing agreement.
The profit comes despite an extremely challenging year for the company and the refinancing agreement provides a massive boost for the consultancy’s future.
Paul Hamer, Chief Executive, WYG Group, said: “We have been through profound change in the last 12 months which has seen us look to restructure our finances, operations, processes and senior leadership team. All of this has being undertaken against the backdrop of a global recession and unpredictable conditions in the markets in which we operate.
“Despite a challenging year both in terms of the financial restructuring and general market and global economy, the business has delivered a profit of £12 million, which shows the strength of our underlying business.
“The proposed refinancing will provide us with a strengthened and sustainable long term capital structure enabling us to compete more effectively in the current challenging environment.”
Under the Heads of Terms the Banks have agreed to convert approximately £50m of the debt owed to them into new ordinary shares and new preference shares in the Company. The balance of the monies owing to the Banks will be refinanced by the Banks into term debt facilities and working capital facilities including €38m of committed bonding facilities, each with a three-year term.
Should the proposed refinancing be approved by shareholders, the company proposes to issue shares to the lenders, in exchange for a reduction in borrowings by approximately £50m, such that the lenders would own 60.5% of the enlarged issued ordinary share capital, while a new employee benefit trust would own 24.5% and existing shareholders 15%.
As a result of this major refinancing exercise, WYG reported £141 million of exceptional costs and other items, which are mainly non-cash items.
Once finalised the precise details of the proposed restructuring will be set out in more detail in a circular, to be sent to shareholders in due course.
Should the refinancing be approved by shareholders, WYG will cancel the admission of the ordinary shares to the official list and to trading on the London Stock Exchange’s main market for listed securities and apply for admission of the ordinary shares to trading on AIM.
Paul added: “With a new leadership team and a restructured balance sheet, we will be putting in place fundamental building blocks to enable us to benefit from profitable opportunities at home and internationally, while continuing to take a prudent and cautious view of the market.”