WYG narrows first half pre-tax loss
PROJECT management consultancy WYG is looking ahead with confidence after narrowing its first half pre-tax loss and boosting the business through acquisitions and investments.
In September, the Leeds-based group acquired Alliance Environment and Planning for £3.2m in a move to create one of the largest planning businesses in the UK.
Updating the markets this morning on its performance in the six months to September, gross revenue was stable at £63.2m (H1 2013: £63.9m).
The company said this inluded a £4.6m increase in UK revenue offset by the decrease in its international revenue largely due to the hiatus caused by the delay in signing the new EU budget.
Operating profit performance continued to improve with the group making an operating profit before separately disclosed items of £2.1m (H1 2013: profit of £1.7m) and an adjusted profit before tax of £1.9m (H1 2013: £1.4m).
On a statutory basis, the group made a loss before tax of £0.4m (H1 2013: £0.7m) on pre-joint-venture revenues of £62.3m (H1 2013: £63.9m).
Paul Hamer, chief executive, said: “We have enjoyed a very positive first half. Building on last year’s momentum, the UK has performed particularly well and we have retained or won the overwhelming majority of the key framework agreements that we have bid for, which are expected to generate a substantial proportion of our revenues over the next two to three years.
“We have also won a number of important new international contracts, significantly improved our order book, and further strengthened our business through acquisitions and investments.
“We are already seeing an acceleration of international development opportunities and the benefits of the approval of the EU Budget during the second half of the year, creating almost more opportunity than WYG can service so we continue to place a strong emphasis on the formation of strategic partnerships and identifying select acquisitions which can contribute to the group’s strategic ambitions.
“Overall, we are pleased with the improvement in profitability so far. The strong order book growth we are beginning to see allows us to be confident about WYG’s long term prospects.”
