Shares of Leeds-based WYG, the AIM-listed project management consultancy, slumped 33% after it said on Friday it anticipates that operating profit for the full year “will be substantially lower than current market expectations.”
In a trading update, WYG said: “The board has further revised its expectation of operating performance over the remaining months of the financial year and now anticipates that operating profit (before separately disclosed items and share based payments) for the full year will be substantially lower than current market expectations and in the range of £3.5m to £4.0m, with net debt expected to be in the region of £6.0m to £7.0m.
“Our international development business is performing broadly in line with previously revised expectations.
“However, our consultancy services business has continued to experience lower trading volumes than anticipated as a result of the loss or delay of certain new contracts we had previously expected to win in the current period, and significantly lower than anticipated volumes of work under certain major framework contracts.
“This has led the board to take a more cautious view of trading performance for the remainder of the financial year.”
Douglas McCormick, CEO of WYG, said: “Although it is very disappointing to be making a further announcement revising expectations of WYG’s near term performance, the board is confident that the underlying business is robust and that, supported by a strong order book, we are taking the correct steps to return to a growth trajectory in the medium term.”