Sign up United Kingdom
Proactive Investors - Run By Investors For Investors
Why invest in WYG?

WYG up after it sees second half improvement as delayed contracts start to come through

"We have made good progress implementing our strategy; extended our bank facility with HSBC; and completed a significant step to stabilise WYG's position in light of the potential impact of Brexit," said CEO, Douglas McCormick
Project management
An efficiency review underway with the recommendations to be implemented throughout the current financial year

Global project management and technical consultancy WYG PLC (LON:WYG) saw its shares gain on Tuesday after the firm said a strengthening order book provides a sound basis for current year expectations and medium-term confidence.

In mid-morning trading, WYG shares were up 12.5% at 49.5p.

The company revealed in its results statement covering the year to the end of March that the Consultancy Services business is delivering improved results while International Development opportunities continue despite delays in Turkey.

WATCH: 'Growth and efficiency' the focus for WYG PLC in 2018

Management said its underlying business is robust and it is expecting to return to an improved profitability trajectory in the medium term.

For the year just ended, revenue edged up 1.7% to £154.4mln from £151.8mln, with revenue in the second half of the financial year up 2.6% at £78.2mln from £76.2mln in the corresponding period 12 months earlier.

Adjusted operating profit fell to £3.5mln from £8.8mln, but was in line with market expectations, while second-half operating profit improved to £2.5mln from £1.0mln the previous year.

Adjusted profit before tax declined to £2.9mln from £8.2mln but, again, the second half performance saw an improvement, with adjusted profit before tax improving to £2.2mln from around £700,000.

Net debt at the end of March stood at £6.3mln, compared to £10.1mln six months earlier and £2.5mln at the end of March 2017.

Order book rises

The order book was up 14.7% at £166.4mln from £145.0mln at the end of March 2017.

The Consultancy Services order book was up 6.9% to £96.1mln (2017: £89.8mln) reflecting continuing growth in WYG's infrastructure and planning markets.

The International Development arm's order book was 27.5% higher at £70.3mln compared to £55.2mln 12 months earlier following project wins in the year.

"These results reflect an improved second half despite the continued delays experienced by our Turkish business. Having posted a disappointing set of results at the half year, the team has taken action to start to offset the issues we highlighted in August and November 2017, and there have since been several positive developments ensuring that we met the market's revised expectations of our profit and cash performance,” said Douglas McCormick, who took over as chief executive officer in June 2017.

"Many of the major projects in both of our principal business streams that were delayed in 2017 are now being delivered and our strong order book underpins a significant proportion of FY19's projected earnings. We have a clear strategy in place, a reshaped leadership team and a strong wider group with deep expertise in our chosen markets. There is plenty of opportunity to build on this robust platform and I believe we are taking the right steps to return to growth in profitability," he added.

Specialist local knowledge is the group's key advantage​

WYG is an award-winning professional services firm operating from more than 50 locations across the UK, Europe, Africa and Asia.

It has six business streams: international development; infrastructure & built development; programme & project management; surveying & asset management; environmental and planning & transport.

Its main selling point to customers is the specialist local knowledge and networks it has that enable it to undertake ambitious projects that make a positive impact on infrastructure, socio-economic growth and the environment.

The group says that its expertise “matches opportunities within [the] international funding and geo-political landscape.


View full WYG profile View Profile

WYG PLC Timeline

Related Articles

printed circuit board
July 26 2018
The maker and supplier of customised electronics ended the quarter with a record order book of £135mln
March 14 2018
Chief executive Jeff Stusek also noted the information management specialist made significant acquisitions last year.
Big data
July 30 2018
In a post-Cambridge Analytica world, the TRUTH Data Cloud, released by one of RYVL's subsidiaries, is seeking to put power back into the hands of the user

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use