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Fri August 12 2022

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WYG seeks acquisitions as losses diminish

2 Dec 13 Publicly listed consulting engineer WYG has seen an improvement in its finances and is now looking to bolt on acquisitions to maintain its progress.

CEO Paul Hamer
CEO Paul Hamer

In the six months to 30 September 2013, WYG’s revenues were up 3% to £63.9m (2012 H1: £61.8m). Its operating loss for the first half were nearly double last year’s at £447,000 (2012 H1: £254,000 loss). Loss before tax was unchanged at £743,000 (2012 H1: £742,000).

WYG has had a difficult recession, with two debt-to-equity transactions and closure or sale of certain subsidiaries, culminating in a £3.4m pre-tax loss last year.

However, CEO Paul Hamer says that the business is now stable and positive results are being delivered. Stripping out one off costs, the business made a £1.7m operating profit in the first half and £1.4m profit before tax, compared to a £100,000 adjusted operating profit last time and £400,000 adjusted loss before tax.

The UK order book grew during the period to £39.2m (31 March 2103: £29.3m).

Improvement was attributed in part to Ministry of Defence work.  WYG is joint lead consultant on the assessment studies for the £1.6bn Army Rebasing programme.

Mr Hamer said: "The group has performed well during the first half of the financial year, building on the stability attained last year to achieve revenue and order book growth as well as a significant improvement in profitability, as our strategy begins to deliver the desired results.

"To build on the momentum achieved thus far, we are looking at a range of opportunities to invest organically and through selective, small acquisitions both in the UK and internationally, made possible by the group's improving profit and cash position.

"Based on this improving position, we are confident of delivering full year results in line with recently upwardly revised market expectations, as we have clear momentum in securing new contract wins and are a diversified group with strong market positions in the geographies and sectors in which we operate."

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