Profit warning hits WYG

Leeds-headquartered planning and project management business WYG has issued a profit warning, which it is blaming on project delays.

Though revenue will be in line with expectations at more than £150m – representing growth of 13% – the company has had to downgrade its expectations for operating profits.

WYG has said that it expects revised profits for the year to March 2017, before separately disclosed items to be “approaching £9m”.

This represents a 25% increase in profits, but is below previous expectations.

Separately disclosed items are expected to total £2.5m, and include a charge for the restructuring of its polish business.

WYG said that although turnover for its last quarter was expected to be higher than last year, project deferrals on existing contracts and delays in the confirmation of new projects has led to lower than expected profit performance.

Combined with investment in UK capacity, will result in UK profitability for the year being lower than in 2016, said WYG.

A redeeming feature is international operations, ahead of expectations in both sales and profits.

“Reassuringly”, it said, there had been no major project cancellations, and it is still optimistic that projections for 2018 will be reached.

Paul Hamer, chief executive officer of WYG, commented: “Whilst our profit performance in the UK will not be as strong as we expected, growth across the Group and particularly the performance of our international operations provides tangible evidence that the Group’s strategy to build a more broadly based, resilient and balanced business is starting to bear fruit.”