WYG sees encouraging signs in challenging market

WHITE Young Green (WYG), the Leeds-based design and engineering consultancy, said today that trading was in line with expectations although conditions remain challenging.

In an interim statement for the period July 1 to November 18 the group said that despite a lack of confidence and liquidity there are also some encouraging signs in respect of opportunities and new contract wins.

Last month WYG announced a debt-for-equity swap, which will see its banks take a majority stake in the business.

The deal will see WYG’s banks Lloyds, Royal Bank of Scotland and Fortis take a 60.5% stake in return for converting around £50m of the £91.5m debt owed to them into new ordinary shares and preference shares.

The balance of the monies owing to the banks will be refinanced by the banks into term debt facilities and working capital facilities including €38m of committed bonding facilities, each with a three-year term.

If approved existing shareholders will own 15% with a new employee benefit trust owning 24.5%.

It will also require WYG to leave the London Stock Exchange’s main market and migrate to the Alternative Investment Market (AIM) with a new name – WYG plc.

The group’s fortunes have also been lifted with the announcement of annual profits of £12m before £141m in exceptional costs and other items.

WYG employs around 3,000 staff, 500 of which are based in Leeds.