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Sun October 20 2019

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Consulting engineer issues profit warning

24 Nov 17 Listed consulting engineer and project manager WYG has warned that its annual profits will be substantially lower than it had previously expected.

WYG chief executive Douglas McCormick
WYG chief executive Douglas McCormick

In a trading update WYG said that while its International Development business was “performing broadly in line with previously revised expectations”, its Consultancy Services business was struggling.

“Our Consultancy Services business has continued to experience lower trading volumes than anticipated as a result of the loss or delay of certain new contracts we had previously expected to win in the current period, and significantly lower than anticipated volumes of work under certain major framework contracts,” the firm said.

As a result, it now anticipates that operating profit for the year will be “substantially lower than current market expectations and in the range of £3.5m to £4.0m, with net debt expected to be in the region of £6.0m to £7.0m”.

This is the second profits warning that WYG has had to issue since former chief executive Paul Hamer left in June to run Sir Robert McAlpine.

His replacement at WYG, Douglas McCormick, said: "Although it is very disappointing to be making a further announcement revising expectations of WYG's near term performance, the board is confident that the underlying business is robust and that, supported by a strong order book, we are taking the correct steps to return to a growth trajectory in the medium term."

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