Fragile states build firm foundations for achieving robust profit targets
LEEDS-BASED project management consultancy WYG is looking to the “fragile states” across the world as part of its plans to achieve pre-tax profits of £15m within three years.
Last week Chancellor George Osborne confirmed that 50% of the Department for International Development’s (DfID) budget will be allocated to fragile states in each of the next five years, while funding is to be increased for Eastern Europe and the Balkans, and climate change resilience.
WYG chairman Mike McTighe said these announcements “validate our current growth strategy and confirm that we are well positioned to take advantage of opportunities” because of its position on key frameworks with the Foreign and Commenwealth Office, World Bank and DfID.
While optimistic about future growth, WYG has announced its half-year revenues slipped slightly, down 1% to £62.6m in the six months to September. It blamed “the delay in the ramp up in the EU funding cycle” and said that since this was resolved it has won some significant multi-year projects. Adjusted pre-tax profits rose 13% to £2.2m.
“We expect performance to build during the second half of the year and for several years beyond,” said chief executive Paul Hamer.
“With an exceptionally high proportion of our current year revenue expectations already in our order book together with the strong momentum in our international business and the steps taken over recent years to increase Group profitability, we are well placed to deliver on market expectations for the full year.
“In addition, having recently secured a more flexible £25m bank facility, we are actively reviewing a number of acquisition opportunities and investing in growth in support of our aspiration of building towards a profit before tax of £15m by 2018.”
Group finance director Sean Cummins is to step down after four years “for personal reasons” with the company beginning its search for an external candidate.
