WYG wins multi-million pound contracts

WYGs CEO Paul Hamer said the contract wins are testament to the range and quality of the group's technical expertise
WYGs CEO Paul Hamer said the contract wins are testament to the range and quality of the group's technical expertise
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Global project management consultancy WYG has won two major new framework contracts with UK Government agencies and a significant new contract in Africa, which could be worth £50m to WYG over the next three years.

The Leeds-based group said the contract wins are testament to the range and quality of its technical expertise.

WYG has been appointed as The UK Defence Infrastructure Organisation’s preferred Principal Support Provider (PSP) for new projects in central and southern regions of the UK.

The UK Defence Infrastructure Organisation (DIO) is an arm of the UK Ministry of Defence (MoD) and plays a vital role in supporting the armed forces by building, maintaining and servicing the UK’s defence infrastructure.

WYG estimates that its expanded role could double its existing £12m per annum revenue in each of the next three years, which makes up £36m of the projected £50m win.

The second Government contract is with The Crown Commercial Services’ £2.9bn flagship framework which provides central government customers and the wider public sector with project management services to support their property and construction projects.

WYG has been included on this framework under three separate lots. Projects will be secured as a result of mini-competitions or direct awards in accordance with Government procurement rules.

The framework is initially for two years although this can be extended in one year increments up to a maximum of four years. WYG estimates that the framework could be worth up to £3m a year over the duration of the framework. This accounts for £6m of the £50m win.

The third contract is in Southern Africa where the Climate Resilient Infrastructure Facility (CRIDF) is a major donor-funded programme which improves the sustainable, equitable use of Southern Africa’s water resources.

The facility aims to develop projects that increase the ability of communities, policy makers and planners to cope with climate extremes.

It aims to contribute to peaceful, climate resilient and sustainable planning and management of Southern Africa’s shared waters, and generate benefits for the region’s poorest. Initially, WYG will provide services with a fee value of up to £5m over the next two years with the likelihood that this will expand significantly. This accounts for £10m of the £50m win.

WYG’s CEO Paul Hamer said: “These contract wins are testament to the range and quality of our technical expertise both in consultancy services across the UK and in our international development business.

“They build our strong track record in delivering major long term infrastructure projects for the UK Government and its major agencies.”

He said that in a highly competitive environment, the award of two out of three of the regions under DIO’s model is particularly pleasing.

“It is confirmation that during our work for the MoD over the past 25 years we have continually refreshed our approach to help the MoD to deliver its operational capability.”

Analyst James Tetley at N+1 Singer said: “WYG has announced a number of encouraging contract wins.

“Together, the contracts are estimated to be worth around £50m to WYG over the next three years. We leave our forecasts unchanged at this stage, but clearly today’s contract announcements should help to underpin our 2018 growth forecast.

“As indicated at the time of the full year update, the order book and pipeline remain strong.”

WYG will announce annual results next Tuesday.