In a pre-close trading update ahead of the release of its annual results for the year ended June 30, the Leeds-based group said net debt was expected to be no greater than £73m, a slight improvement on the earlier expectation of £75m. It also said it had reached an agreement with HM Revenue & Customs in respect of its claim for Research and Development Tax Credits and expects to reduce the charge to taxation for the year ending June 30 by around £1.5m, reducing by approximately £350,000 per annum.

WYG said demand for its services continues to hold up well and management are currently directing resource to those areas of the economy in the UK, Ireland and internationally which are experiencing strong growth. The company added: "The board is aware of the difficulties in the wider economic climate, particularly in the UK, but with its breadth of service offering and strong and diverse client base, is approaching the new financial year with confidence."

WYG, which provided consultancy work on York Racecourse and Headingley Stadium in Leeds, recently won an £11m contract to lead an EU funded initiative in the Western Balkans to support the development and funding of infrastructural remediation and improvement projects in the energy, transport, environment and social infrastructure sec- tors.

It has also won a £4.5m contract for extension and roof refurbishment at Edinburgh Waverley station along with work in the education sector.

WYG said it could not comment on last month's ann-ouncement that the group had received an approach regarding a possible offer for the company.