Management buy out of engineering business

The consultancy WYG has sold part of its UK engineering business, Adams Kara Taylor, to management in a deal worth £3.75m.

The Leeds-based group bought AKT, which works with international architects and academic institutions, in November 2006.

Directors have now come to the conclusion that the unit does not fit with its future plans and is best suited to independent ownership

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AKT employs around 120 people and generated revenues of £12.3m last year, with a pre-tax profit of £600,000. It has gross assets of £2.1m.

Paul Hamer, chief executive of WYG, said: “AKT has been a valued member of the group over the past four years, particularly in contributing to delivering technical excellence to global clients. WYG and the new business will continue to collaborate on projects of mutual interest in key global regions and I wish the management of AKT every success in taking the business forward.”

He added: “Looking ahead, our ambition is to continue on our journey which will see us offering technical expertise across our chosen markets to capture market share by serving our existing and new clients well.”

WYG this week reported falling sales and profits as it continues to battle tough UK conditions, which forced it to cut 400 jobs between July and December. Revenues slumped 27 per cent to £83.7m and it reported an operating profit of just £100,000 compared with £3.7m a year earlier.