WYG is confident of defying election upheaval

The Leeds-based group said it has a healthy order book to see it through the coming year.

Outgoing chief executive Paul Hamer, who is leaving to join Sir Robert McAlpine, said: “Post the General Election announcement, we’ve tried to be agnostic of political colour.

“Any party will have to invest in infrastructure. If you look at the order book we are over 60 per cent covered already. We have got enough work to keep our people busy. We are keeping things tight until we see the outcome of the General Election.”

Mr Hamer will be replaced by ​Douglas McCormick as CEO from June 12.

Outgoing chairman Mike McTighe said: “We thank Paul for his fantastic service over the past nine years during which time he has led the group’s return to growth and profitability. “He leaves WYG with a strong new leadership team, improved governance and culture, a robust order book and a healthy pipeline of major projects with long-term structural funds and institutions with which we have strong relationships.

“We welcome Douglas McCormick whose 30 years’ experience in the construction industry, most recently as chief executive of Sweett Group, provides the company with strong leadership in the next stage of its development as it makes the most of the wealth of opportunities presented by its chosen markets.”

Mr McCormick said: “I inherit from Paul a very solid foundation from which to grow the business.

“The results are excellent in spite of the delays. I bring experience and leadership.

“I’m a people person and this is a people business.”

Analyst James Tetley at N+1 Singer said: “Paul Hamer will be leaving WYG to join Robert McAlpine as CEO and will be replaced by Douglas McCormick.

“While Paul is due significant credit for WYG’s turnaround since 2009, Douglas brings highly relevant experience from his time as CEO of Sweett Group and prior to that Group MD, Rail, at Atkins.”

The group announced the board changes as it reported a 14 per cent increase in revenue to £151.8m in the year to March 31.

Adjusted pre-tax profit rose 17 per cent to £8.2m before the costs of headcount reduction and a rationalisation at the group’s Polish business.

Analyst Nick Spoliar at WH Ireland said: “Major wins such as last week’s £50m worth of contracts illustrate the company’s ability to win ongoing, long-term work with diverse and substantial clients.

“A strong and growing order book helps to underpin double digit growth forecasts. The long-term pipeline of opportunities also looks good, and while WYG has flagged some client hesitancy around the General Election (though Purdah has only ruled out £50m-plus contracts), generally the company appears to have left the Q4 hiatus in the UK behind it.”

Mr Hamer said he is confident that the project delays have been sorted out.

“​We don’t know whether there was a subtle change in spending patterns or maybe it was Article 50 uncertainty,” he said.

“None of ​our clients cancelled or stopped projects. They caught their breath and said: ‘We’ll start in April or May’.

“Rather than make headcount reductions we decided to take the cost. Since the year end we have seen a resumption of those activities.

​“Last week’s wins were some of those we should have worked on earlier in the year.

“Barring any major changes at the General Election, we expect another good update in a couple of months.”