WYG sees better second half

The Leeds-based group said last year’s capital restructuring has created a ‘New WYG’ with a strong balance sheet and significant net cash balances

WYG reported reduced overhead and legacy costs, which were ahead of market expectations

The company said it has secured key international orders in Western Balkans, Eastern Europe and the Middle East/North Africa

It added that trading since the year end on March 31 has continued in line with expectations and the group is now focused on delivering quality revenue growth

The UK trading environment was described as more stable, with improvements in certain UK public and private spending activity while WYG sees good international prospects as it exploits opportunities through globally integrated sector focus and partnerships.

The group’s chief executive Paul Hamer said: “The first year of the ‘new WYG’ has been a year of tremendous change and I am pleased to report that we have delivered a financial performance consistent with management’s expectations at the time of the placing in July 2011. “

The considerable improvement in the group’s performance in the second half of the financial year compared with the first half reflects the continuing benefits of the board’s strategy and the excellent progress made with implementing the ‘self help’ measures identified last year.”

WYG said it is on track to return to operating profit in the near term.

The group completed a major capital restructuring last July which included a placing to raise approximately £30m, the conversion of £51m of the group’s net debt into convertible shares and the redesignation of the group’s preference shares.

The company said this created a ‘new WYG’ with a strong, debt-free balance sheet and significant net cash balances. Gross revenue over the year to March 31 was £139.9m. The company reported revenues of £121.5m in the nine months to March 2011.

The group made an operating loss before separately disclosed items of £3.5m. It made a profit of £100,000 in the nine months to March 2011.

It made an operating loss of £2.5m in the first half, but this was reduced to a £100,000 loss in the second half.

Overall, the group reported a loss before tax and separately disclosed items of £3.5m. It made a £100,000 profit in the nine months to March 2011.