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WYG upbeat as major projects get moving

Consultancy firm WYG said tough times in the UK are being offset by major government projects coming back on line.

The firm - which has undertaken a large-scale restructuring since 2009, including cutting 50 per cent of its workforce - gave an upbeat statement to the Stock Exchange ahead of its AGM today.

Chairman Mike McTighe said the company expects the “subdued and highly competitive” UK markets to be “offset by increased activity in specific areas of UK public spending”.

These include work in support of the Defence Infrastructure Organisation on two of the Ministry of Defence’s largest estate programmes, including Germany Rebasing, and the procurement of the Next Generation Estates Contracts. 

Mr McTighe said:  “We are also seeing a number of major development projects come back on line, which were put on hold in 2010 during the Strategic Defence and Security Review, and increasing activity under the framework agreement we have with the Ministry of Justice.”

Earlier this year in its results for the nine months to 31 March, the consultancy reported a pre-tax loss of £28.6m, up from £21.9m in the 12 months before.

WYG secured a £30m refinancing deal in July, which chief operating officer Paul Hamer said enabled the firm to “look to the future”.

Today the firm said it has introduced incentives to retain and recruit key staff “to address market opportunities both in the UK, particularly in the south east, and also overseas”. At the end of March 2011, the firm employed 1,587 permanent employees compared to 2,148 at 30 June 2010.

Mr McTighe added:  “We are maintaining a rigorous focus on cash management and the group’s cash position remains in line with the board’s expectations.

“With a significantly improved balance sheet, a well-incentivised senior team and trading as anticipated, the board believes that the company is now well positioned to take advantage of growth opportunities.”

WYG’s interim results for the six months to the end of September 2011 will be announced in early December 2011.

 

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