WYG shrugs off Brexit with EU-financed contract wins

The Leeds-based group has been awarded three new EuropeAid projects ​in Turkey and other contracts in the Balkans, Lebanon, Somaliland​, Gambia and Brazil.

WYG is a 31 per cent participant in a consortium which has been awarded a contract in the Balkans with an overall value of £6m over four years. The contract will contribute to the development of a regional energy market and extension of the electricity, gas and transport networks in the Western Balkans region and its connectivity with the EU. It is being financed from the general budget of the European Union.

WYG said there is potential for this project, which is known as CONNECTA, to be extended in duration and scope up to a value in excess of £17m.

WYG’s CEO Paul Hamer said: “We are delighted to be working with our consortium partners on CONNECTA, which expands our longstanding programme of work on critical infrastructure and development in the Western Balkans beyond the Infrastructure Projects Facility.

“Our continuing successes with the EU in Turkey, Africa and the Middle East demonstrate that there is a vital role for our technical expertise in international development. We continue to see a high quality pipeline of commercially attractive opportunities being tendered.”

In Turkey, WYG has been awarded three new EuropeAid projects with a combined value of £4.7m. The contracts include projects in WYG’s specialist fields of water and enterprise development.

It has also been awarded a £3m project to assist with the reform of Lebanon’s National Social Security Fund, which is a significant development in the drive to expand the reach of the business in the Middle East.

In Africa, WYG has won a number of new projects including new public sector financial management contracts and contract extensions in Somaliland and Gambia with a combined total value of £2.2m.

In addition, WYG is partnering on a £3m project to strengthen relations between the EU and Brazil, to support the EU-Brazil Joint Action Plan 2015-2020.

Analyst Nick Spoliar at WH Ireland said: “This news from WYG shows how the business continues to shine overseas, with €17m of new contracts announced, including a €7m award in connection with the prestigious Connecta project, which in the longer term has the potential to add a further €13m.

“This follows on from the rise in the order book to £157m announced last month and shows that WYG’s business outside the UK remains in rude health notwithstanding the Brexit vote, which affected equity market sentiment but has had no material or indeed any impact on the actual business.

“With these wins under its belt, the company remains well-positioned to grow – and by all accounts there is further good potential in the market. Buy.”