WYG reports profits hike and announces major contract win
WHITE Young Green, the building, housing and environmental consultant, reported another strong performance as it announced it had been appointed to provide development control services for the Dubai Waterfront scheme.
Reporting its preliminary results for the year ended June 30 the Leeds-based group said pre-tax profits increased by 26% to £16.8m.
Turnover increased to £282.1m from £220.6m, of which £22.4m came from acquisitions completed during the year.
The order book now stands at a record £400m, up from £380m in 2007, with 51% represented by long term framework agreements extending beyond 2012.
The Dubai Waterfront scheme contract – worth £1.6m a year – will transform 1.4 billion square feet of empty desert and sea into an international community which will house 1.5 million people.
The development, which is set to become a sustainable city, is located on the western shores of Dubai and will be developed on the last 15 kilometres of natural coastline in Dubai.
Chairman Peter Wood said: “It gives me great pleasure to report another excellent year for White Young Green marked by strong double digit organic growth across primary skill groups and geographies. The strategic focus on international diversification, energy and the environment and transport and infrastructure is already generating significant opportunities and will provide a sound basis for continued progress.”
Going forward Mr Wood said the focus will be on three main areas of activity – international diversification, energy and the environment and transport and infrastructure.
He added that the group will continue to look at acquisitions as a way to grow.
Mr Wood also re-confirmed that discussions had ceased regarding a possible takeover.
The group also said that significant work had been undertaken to improve the internal organisation of the group, including streamlining operating activities and improving systems – with progress already being made in areas such as work service delivery, working capital management and staff turnover.
The programme is expected to cut costs within the business in excess of 10% per annum.
Mr Wood added that although a number of the economic indicators in the UK and Ireland remain uncertain, “the outlook for WYG remained positive”.
WYG has been involved in projects in Yorkshire including Leeds Plaza, Kingswood in Hull and Headingley Stadium in Leeds,
The group announced a dividend of 6.3p a share – up 17% from 5.4p.
