Acquisition for confident WYG
PROJECT management consultancy WYG has acquired Alliance Environment and Planning in a move which it says will create one of the largest planning businesses in the UK.
Leeds-based WYG said the acquisition, for £3.2m, is in line with its strategy of “growing quality revenues both organically and through selective acquisitions and will be immediately earnings enhancing.
For the year ended July 31, 2013, Alliance Planning reported turnover of £2.7m and profit before tax (and before the remuneration of its owner-directors) of £538,614.
Net assets at that date were £785,850.
Alliance Planning is one of the UK’s fastest-growing independent planning consultancies providing planning advice on developments from the historic environment and natural resources to master planning and high density urban living.
Established in 1996, headquartered in Guildford and with offices in London, Birmingham and the East of England, Alliance Planning has grown rapidly since then, securing clients including Frasers Property, Henry Boot, Persimmon Homes, Telereal Trillium and a number of housing associations, city and county councils.
Paul Hamer, chief executive of WYG, said: “We are delighted to be joined by Steve Fidgett, Gerald Sweeney, Andy Stallan and the team from Alliance Planning. We believe that they will be an excellent fit with WYG, significantly boosting our planning and asset creation capability. With approximately 100 planning specialists, WYG now has one of the largest teams in the UK. We are also increasingly able to use these specialist skills in support of our international business as they help to develop infrastructure related to population expansion and urbanisation.
“This acquisition, together with recently announced major project wins, represents a further significant step in WYG’s growth journey.”
This morning, WYG also updated the markets on trading for the six months ending September 30.
It said a key measure of its success this year would be an increasing level of order intake which would “manifest itself in a growing order book and a progressive increase in revenue and profitability.”
“As we approach the half year we are delighted to confirm that the order book reported at March 31 2014 of £86.8m has increased by 10% and currently stands at £95.5m,” the company said.
“A buoyant UK market is being supplemented by an increasing number of opportunities in Europe following the finalisation of the European budget, enabling funds to be released to the key development agencies responsible for projects in our core markets. Furthermore, our initiative to diversify into other international development agencies is creating opportunities of scale that could transform that part of the business.”
It said, notwithstanding the acquisition of Alliance Planning, it continues to look at a range of opportunities to invest organically and through selective, niche acquisitions made possible by the group’s improving profit and strong cash management.
Mr Hamer added: “We have enjoyed a very positive start to the year. In the UK, we have retained or won the overwhelming majority of the key framework agreements that we have bid for, which will sustain a substantial proportion of our expected activity over the next two to three years. We have also won a number of important new international contracts, significantly improved our order book and pipeline, and further strengthened our business through acquisition and other investments.
“In recognition of the continued momentum and positive outlook, we will be seeking shareholder approval at our upcoming AGM, to resume dividend payments which reiterates our confidence in WYG’s financial position, prospects and profitability.”
WYG will announce its half year results on December 2.
