WYG expecting good things in first half

Global programme, project management and technical consultancy company WYG updated the market on trading for the six months to 30 September on Thursday, as investors gathered for the annual general meeting.

The AIM-traded firm’s non-executive chairman, Mike McTighe, said the board was pleased to report continued momentum in the growth of the business, with profit before tax and revenues for the half year ending 30 September 2016 expected to be significantly ahead of the comparative period.

“In addition, our group order book has increased by almost 35% to £157m as at 31 August, compared with the corresponding time last year.

“Despite some initial project delays in our UK region, reflecting uncertainty immediately before and just after the outcome of the UK referendum on membership of the EU, we are now seeing positive signs in almost all of our core services,” McTighe explained.

He said UK government and infrastructure spending, which are the main drivers of WYG's front-end planning and consultancy business, have remained resilient and the company won a number of new contracts, ranging from projects for the Ministry of Defence at RAF Lossiemouth and implementing the Army Basing Plan on a number of sites around Salisbury Plain to preparing a strategic masterplan for the town of Baldock for Hertfordshire County Council.

“Overall, we expect UK revenue to be significantly ahead of the comparable period last year.

“Internationally, the scale of the opportunity across our target markets continues to grow and WYG's well-established and market leading local businesses in Poland, Croatia and Turkey are ideally placed to take advantage of the pipeline of opportunities as EU funds flow under the new multiannual financial framework which remains unaffected by the UK's vote to leave the EU.”

Regionally, McTighe said the company continued to see expansion in its EAA region where, as announced on 8 August, it won a number of important new contracts and contract extensions.

“In our MENA region we are pleased to report that there has been no immediate impact from the recent political unrest in Turkey although we continue to monitor developments closely.

“We have secured further projects during the period and our budgeted revenues for the remainder of the current financial year are fully underpinned by contracted work and we therefore expect a continued strong performance from this region,” McTighe said.

He said that overall, the substantial increase in the order book of work to be undertaken in the second half, compared with where it stood at the same time last year, in combination with the expected strong first half performance, gives the board good forward visibility, “and provides a sound platform to deliver a full year performance which is in line with current market expectations.”