31 March 2011
Global management and technical consultancy, WYG Group has today announced its operations made a small profit and it increased its international order book to £89m during the six months to 31 December 2010.
The specialist consultancy, which employs around 1,800 people in over 40 countries, has also restructured into four key market segments, creating a more efficient global business that is better positioned to exploit international opportunities.
This new structure has already facilitated a number of significant new international business wins, including most recently a €1.5m contract with the European Union to facilitate a policy dialogue programme in South Africa. The consultancy has also been appointed by the Ministry of Defence to undertake an assessment study of utilities and infrastructure at Camp Bastion in Afghanistan, which is the main operating base for British forces in Afghanistan.
Paul Hamer, Chief Executive Officer, WYG Group, said: “After nearly two years of major restructuring, we now have an appropriate operational and support structure. The latter stages of this restructuring have been undertaken against a backdrop of profoundly difficult and uncertain market conditions in the UK, particularly in the public sector, and significant volumes of work have been cancelled, reduced or deferred.
“However, the overseas markets in which we operate have remained relatively resilient. Following the restructuring, we have a more efficient globally organised business and our focus is now on growing our global revenues through key relationships and strategic partners.”
Part of WYG’s three-part strategy is to grow its international footprint and during the six months to 31 December 2010 it opened local entities in Syria, Croatia, Bosnia and South Africa, and its international order book increased by £12.6m to £89.2m. Group revenue decreased by £31.5m to £83.7m and operating profit decreased by £3.6m to £0.1m.
WYG is keen that it has access to sufficient capital to take advantage of the opportunities that now exist to grow in its chosen markets. The consultancy has entered into a collaborative process with its lenders to explore the options available to address the funding requirements of the Group.
Paul added: “As well as ensuring we have access to sufficient capital for growth opportunities, we also recognise the importance of attracting and retaining talented employees and we are looking to implement an effective and meaningful employee incentivisation structure that is aligned to the interest of stakeholders.”
It is expected that this process will be finalised before 30 June 2011.
• Revenue at £83.7m (2009: £115.2m)
• Adjusted* loss before tax of £2.6m (2009: £1.6m profit)
• Adjusted* loss per share of 3.7p (2009: restated earnings per share: 1.8p)
• Operating profit before exceptional and other items of £0.1m (2009: £3.7m)
• Net debt as at 31 December 2010 £38.5m** (30 June 2010: £36.6m)*Before exceptionals and other items
**Net debt excludes restricted access amounts