WYG fights for survival with £30m fund raising

Grant Prior 13 years ago
Share

WYG has shed more than 50% of its staff – and further cuts are planned at the UK offices as the consultant continues a radical restructuring to survive.

Dire results revealed today show the firm made a pre-tax loss of £28.6m for the nine months to March 30 2011.

The firm said  its “current level of debt is unsustainable” and is in talks with its lenders over a £30m capital restructuring via a share placing which is due to be finalised by the end of this month.

Costs across the company have been cut by £110m during the last two years as the firm let more than 50% of its staff go.

WYG employed 1,587 people at the end of March 2011 compared to 2,148 on June 30 2010.

Further planned restructuring this year is centred on the UK property portfolio where a number of offices will be closed.

The firm said: “The Directors are very grateful for the support shown by all the Group’s employees, clients and other stakeholders during these challenging times.”

Chairman Mike McTighe said: “Business conditions in the UK continue to be challenging and, although revenues are now stabilising, there is still limited visibility of future work in both the public and private sectors.

“There are early signs of some modest improvements, particularly in relation to private sector development, ongoing retail expansion and the drive for green and renewable energy generation but, overall, the scale and timing of any sustained recovery in the UK remains very difficult to predict.

“Outside the UK, we continue to see a significant and growing pipeline of opportunities in our key regions.”

WYG’s share price fell by more than 37% during early trading.

Latest news

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
19 hours ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
35 mins ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
39 mins ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
14 hours ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
18 hours ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
23 hours ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
23 hours ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
23 hours ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
23 hours ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
22 hours ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
1 day ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
2 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
2 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
2 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
2 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
2 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
2 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
3 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
3 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
3 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
3 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
3 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
3 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
3 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
3 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
3 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
3 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
4 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
4 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
4 days ago

Contractor services