WYG fights for survival with £30m fund raising

Grant Prior 11 years ago
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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.

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