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WYG swings to a loss but shares rise amid order book growth
WYG said on Tuesday that, despite swinging to a full-year loss, its strengthening order book provides a sound basis for current year expectations and medium-term confidence.
The project management and technical consultancy firm reported a loss before tax of £5.3m, down from a profit of £1.6m the previous year, after the company was subject to a £2.5m increase in legacy claim provisions and a £3.2m charge relating to the closure of the company's North Associates business.
The AIM traded company's financial results for the year ended 31 March show revenue edged up 1.7% to £154.4m from £151.8m, with revenue in the second half of the financial year up 2.6% at £78.2m from £76.2m in the corresponding period 12 months earlier.
Douglas McCormick, chief executive of WYG plc, said: "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."
Positive developments include the state of WYG's order book which was up 14.7% at £166.4m compared to 12 months prior.
The group's international development arm saw its order book increase by 27.5% to £70.3m while the consultancy services arm enjoyed a 6.9% boost to £96.1m over the same period.
The company's net debt at the end of March stood at £6.3m, compared to £10.1m in the company's half year report and £2.5m last year.
"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," said McCormick.
As of 1442 BST, WYG's shares were down 10.23% at 48.50p.