Record international order book fuels WYG’s growth plans

WYG has today announced its financial results which reveal a record international order book, increasing to £104m, and a proposed £30m capital restructuring to fuel further growth in its chosen markets.

The management team, appointed in 2009, has already achieved a significant turnaround at WYG, creating a more efficient business and globalising the Group’s core capabilities.  The cost base has been reduced by over £100m and, with the restructuring now substantially completed, the Group is shaped for growth.

It is, therefore, WYG’s intention to raise £30m net by way of a public-equity fundraising to eliminate debt, create the balance sheet strength required to win new business and to recruit, retain and incentivise employees with appropriate performance-based rewards to fuel its growth.

Paul Hamer, Chief Executive Officer, said: “WYG has undergone tremendous change over the last two years.  The operational restructuring of the business is now substantially complete and WYG is much better placed to exploit the opportunities available to us in our chosen international markets.

“Our immediate priority now is to complete a successful capital restructuring which would enable us to realise those opportunities and, overall, create a positive growth environment.”

WYG has continued to work in partnership with its clients to deliver solutions to some of the most sophisticated assignments in its market.  During the financial period under review, it submitted the UK’s largest planning application for a £5.5bn redevelopment of Liverpool docklands, completed Europe’s largest water enhancement in Poland worth €60m and signed its first mutual cooperation agreement with a leading engineering consultant group in Beijing as part of its ongoing international growth strategy.

The Board of WYG is confident that the capital restructuring can be completed and the company will move forward successfully with a strong balance sheet. Further details of the proposed capital restructuring will be announced very shortly, and no later than 30 June 2011. 

Overview of results for the nine months to 31 March 2011:

• Gross revenues of £121.5m for the nine months to 31 March 2011 (year ended 30 June 2010: £220.6m); international revenues increased by 8 per cent (on an annualised basis) and now represent circa 35 per cent of whole
• Revenues increased in all key overseas markets; UK and Ireland markets remain challenging
• Operating loss before exceptional and other items* of £0.3m (year ended 30 June 2010: profit of £7.7m)
• Strong cash performance, with cash generated from operating activities of £4.3m (year ended 30 June 2010: £2.3m)
• Net debt at 31 March 2011 reduced to £29.2m (year ended 30 June 2010: £33.9m)
• New wins by the recently established businesses in South Africa, Croatia and Bosnia-Herzegovina
• International order book increased to £104.0m (year ended 30 June 2010: £100.6m)
• Loss before tax of £28.6m (year ended 30 June 2010: £21.9m)

* Other items relate to amortisation of customer relationships and order book intangible assets.