WYG posts expected loss
LOSSES have widened at engineering consultancy group WYG which has warned there is “no evidence” of a sustained recovery.
During the six months to December sales at the group fell by 20% to £115.2m and pre-tax losses widened to £4.6m from £2.1m.
The adjusted figure, which strips out exceptional costs, was a profit of £1.6m, down from £9m.
The company, which has just undergone a major restructuring, said the figures were in line with expectations. It is continuing to secure new orders, particularly outside the UK, but it warned there is, “no evidence of sustained or significant recovery”.
Chairman Mike McTighe said: “We have continued to make good progress in our recovery programme during the period. Notably we agreed the terms of our refinancing.
“Trading conditions were and remain generally challenging but we now have the financial platform on which to develop for the future. Overall our trading during the period has been, and remains, in line with the board’s expectations.”
Earlier this month it hailed the completion of its refinancing deal as the “beginning” of the next stage of its development.
The group’s restructuring saw a debt-for-equity swap in which shareholders in the Leeds-based business accepted a significant dilution of their stakes by approving the plans.
The alternative would have meant their shares being worth nothing and the business probably being placed into administration with the loss of 2,700 jobs.
The group has worked on major construction projects in Yorkshire including new stands at York Racecourse and Yorkshire County Cricket Club’s Headingley Carnegie ground.
