Strong orders boost Leeds project managers WYG

Shares of Leeds-based WYG, the AIM-listed project management consultancy, rose 10% after it said its order book was up 14.7% to £166.4 million as at March 31, 2018 and its international order book was up 27.5% at £70.3 million.

WYG said revenue rose 1.7% to £154.4 million for the year to March 31 but it made a loss before tax of £5.3 million “after previously announced £2.5m increase in legacy claim provisions and a £3.2m charge relating to the closure of the North Associates business.”

WYG chief executive officer Douglas McCormick said: “These results reflect an improved second half despite the continued delays experienced by our Turkish business.

“Having posted a disappointing set of results at the half year, the team has taken action to start to offset the issues we highlighted in August and November 2017, and there have since been several positive developments ensuring that we met the market’s revised expectations of our profit and cash performance.

“We have made good progress implementing our strategy; extended our bank facility with HSBC; and completed a significant step to stabilise WYG’s position in light of the potential impact of Brexit.

“Many of the major projects in both of our principal business streams that were delayed in 2017 are now being delivered and our strong order book underpins a significant proportion of FY19’s projected earnings.

“We have a clear strategy in place, a reshaped leadership team and a strong wider group with deep expertise in our chosen markets. 

“There is plenty of opportunity to build on this robust platform and I believe we are taking the right steps to return to growth in profitability.”