WYG looks overseas to build revenues

The Leeds-based company said overseas revenue grew by 12.5m to 65.3m in the year to June 30.

After two years' painful restructuring, chief executive Paul Hamer said WYG can look to the future with growing confidence as increasing international orders form a buffer against tough domestic markets.

The plan is for the international operations to provide 50 per cent of total group revenues by 2013. They currently account for just over a third.

WYG Group said adjusted pre-tax profits fell from 12m to 2m following what it described as "a year of great change".

On entering the recession with a heavy debt burden and hefty exposure to the UK and Ireland's crashing economies, old management were cleared out and Mr Hamer and finance director David Wilton led a restructuring that forced it into a debt-for-equity swap, with banks taking a majority stake.

WYG changed its name from White Young Green when it completed the refinancing earlier this year. Costs have been significantly reduced in response to very difficult market conditions in UK and Ireland.

Hundreds of jobs have been lost during this period, but Mr Hamer said further job losses would be in tens rather than hundreds.

WYG's revenue reduced from 261.6m to 220.6m over the year.

"Turnover was down significantly as we planned," said Mr Hamer. "We inherited a business with a number of loss-making contracts. For the situation we're in, this is a positive result."

But the group's shares lost seven per cent to close down 2.25p at 29p last night.

WYG said much will depend on the Government's public sector spending announcement on October 22.

"Everyone is holding their breath for October 22," said Mr Hamer. "We'd like certainty and immediate clarity on the new planning regime. We need more long term investment in infrastructure and industry."

In recent months, the group has won a string of international contracts, including its biggest-ever foreign deal.

Part of an international consortium, it won the second phase of a European Union-funded programme to restore and upgrade transport, environment and energy infrastructure across the Western Balkans – a four-year, 15.3 million euro project.

In addition, the consultancy has opened overseas offices in Bosnia & Herzegovina, a subsidiary company in Croatia and expects to open a further subsidiary company in South Africa soon.

Mr Hamer said that although domestic markets remain very challenging, it still has strong relationships with its domestic clients.

"Whilst we expect domestic markets to remain very challenging, we are encouraged by the way in which some important overseas markets for our services are growing," he said

WYG is working on a number of projects in Yorkshire including the provision of professional and technical support services at Catterick Garrison in North Yorkshire.

WYG will provide a full range of multidiscipline services for new build and refurbishment works across the Ministry of Defence estate, including Catterick.

Other projects in the region include the terminal extension at Leeds Bradford International Airport, the promotion of Doncaster-based UK Coal's land interests on key strategic sites such as the Windsor development in Kirklees, the planning brief for the Futurist Theatre and surrounds in Scarborough and a housing scheme in Leeds on the former Clariant Chemical Works.

AWARD HONOUR FOR STORM DAMAGE SCHEME

WYG won a top award at the recent Yorkshire & Humber Institution of Civil Engineers award ceremony in Sheffield. The winning project, which took top spot in the Yorkshire Award for Excellence category, was the A6102 Sheffield Storm Damage Sites scheme.

The scheme was originated by Sheffield City Council, designed by WYG and constructed by Carillion Engineering.

The judges said the scheme was "a shining example of a civil engineering project" that "clearly demonstrated the commitment, perseverance and skill of civil engineers in addressing those challenges which our communities face".

The A6102 project was a result of prolonged heavy rainstorms. Two sections of the highway collapsed into the River Don, closing one of the major routes into Sheffield city centre and threatening major water mains and a gas main.

Sheffield City Council engaged the WYG/Carillion team to reinstate the river valley sides and rebuild the highway. The works were completed and the road reopened to traffic ahead of schedule.