WYG in talks with lenders as losses spiral to £22m

Aaron Morby 12 years ago

Engineering consultant WYG is in talks to secure long term funding of the business after another tough six months of trading.

The firm suffered further pre-tax losses, including exceptional costs, of £22m in the six months to December 2010 on turnover slumped 27% to £84m.

Before exceptional costs WYG scraped in with a trading profit of £100,000.

WYG said it was in talks with its lenders to explore the options available to address long term funding requirements and would finalise a deal before 30 June 2011.

The consultant stressed it remained compliant with existing covenants and continued to forecast that its future borrowing requirements will be within the level of its overall banking facilities.

Paul Hamer, chief executive officer, said that the restructuring of the business, which saw 400 jobs axed in the last six months, was close to being completed.

He added that future growth would be delivered from plans to develop overseas work.

“After nearly two years of major restructuring, we now have an appropriate operational and support structure.

“The latter stages of this restructuring have been undertaken against a backdrop of profoundly difficult and uncertain market conditions in the UK, particularly in the public sector, and significant volumes of work have been cancelled, reduced or deferred.”

Following a full business review, the value of goodwill carried on the balance sheet was reduced by £12.1m.

The group incurred exceptional costs of £2.7m to cover redundancies and £3.1m in office closures.

He added: “The overseas markets in which we operate have remained relatively resilient.

“Following the restructuring, we have a more efficient globally organised business that is well placed to benefit from the opportunities in international markets.

“Our focus is now on growing our global revenues through key relationships and strategic partners.

“As part of this we are looking at options that may allow us to create a positive growth environment with focused investment in employee retention, key recruitment and non-organic expansion”, he added.

“Significant market challenges remain and we will continue to drive further efficiencies across the Group.”

The specialist consultancy, which employs around 1,800 people in over 40 countries, has also restructured into four key market segments, creating a more efficient global business that is better positioned to exploit international opportunities.

Part of WYG’s three-part strategy is to grow its international footprint and during the six months to 31 December 2010 it opened local entities in Syria, Croatia, Bosnia and South Africa, and its international order book increased by £12.6m to £89.2m.

Trading by new divisions

Buildings & Critical Infrastructure achieved revenue of £32.5m (2009: £53.2m) with an operating loss before exceptional and other items of £1.2m (2009: £0.5m profit).

Transport Solutions generated revenue of £8.0m (2009: £8.5m) with an operating profit before exceptional and other items of £0.9m (2009: £0.8m).

Energy, Sustainability & Environment contributed revenue of £12.1m (2009: £15.2m) with an operating loss before exceptional and other items of £1.4m (2009: £1.0m loss).

Risk & Assurance Services achieved revenue of £31.1m (2009: £38.3m) with an operating profit before exceptional and other items of £1.7m (2009: £3.3m).

Latest news

Self-employed labour rates hit record high

Average weekly pay tops £1,000 in London, the South East and East of England.
2 days ago

Network Rail chief takes finance reins at Skanska

Meliha Duymaz is new Chief Financial Officer
2 days ago

Construction Manager of the Year crowned

Kier's Joe O’Connell lands top prize. Full list of winners
3 days ago

Hochtief starts pulling down Welsh pylons

Construction starts on National Grid project
2 days ago

Kier wins London life sciences job

Contractor lands innovative landmark lab development at ARC West London
2 days ago

Social housing bidding opens for £1.5bn energy retrofit cash

First upgrades of social housing stock could start from early next year
3 days ago

Construction arm propels Mace to record profit

Revenue expected to top £2bn this year despite project delays
4 days ago

Fire destroys conveyor belt at Silvertown Tunnel site

Forty firefighters battle blaze at huge London site
4 days ago

Plan for £58m Bristol pharma R&D facility approved

Willmott Dixon in line to build the R&D facility at Bristol & Bath Science Park
3 days ago

Bond Street Elizabeth line station to open next month

Final station on delayed line will welcome passengers in October
3 days ago

Sisk fixes price on £227m Quintain flats job

Quintain signs single-largest contract so far at Wembley Park
4 days ago

Green light for St Helens town centre revamp

English Cities Fund to start phase 1 next April
3 days ago

Rising costs tip William Hare to £3.6m loss

Specialist contractor falls into the red despite near 60% revenue rise to £220m
5 days ago

Safety blitz on “aches, pains and strains” on site

1,000 site visits planned in coming months to check how workers are moving heavy or bulky materials
5 days ago

Drones sent flying underground to check sewers

Traditional inspection teams replaced with latest technology
4 days ago

Plan submitted for 470 Preston flats scheme

Stoneygate Central scheme on Dryden Mill site will rise to 16 storeys
4 days ago

Graham starts £124m M25 Junction 28

Work on the 36-month Junction 28 upgrade includes constructing a major two-lane loop road
4 days ago

Keltbray bags brace of energy infrastructure wins

Civils work on huge converter stations worth £30m to specialist
5 days ago

Balfour Beatty sole winner for £4bn Scape civils deals

Contractor reappointed to England, Wales and Northern Ireland and separate Scottish deals
5 days ago

PR expert Baroness Rock to chair Costain

Kate Rock will take up senior board role at the end of the year
5 days ago

Billington profit upgrade after strong first-half

Steelwork contractor says weaker pound will allow it to reignite its old export markets in Europe
5 days ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
6 days ago

Tolent bags £15m Sunderland skills academy

Work to start later this year on Housing Innovation and Construction Skills Academy
5 days ago

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
6 days ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
6 days ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
6 days ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
6 days ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
6 days ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
1 week ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
6 days ago

Contractor services