Global management and technical consultancy WYG has announced its financial results which reveal a record international order book, increasing to £104 million, and a proposed £30m capital restructuring.

WYG said the restructuring would fuel further growth in its chosen markets.

The management team, appointed in 2009, has already achieved a significant turnaround at WYG, creating a more efficient business and globalising the Group’s core capabilities, while the cost base has been reduced by over £100 million.

With the restructuring now substantially completed, WYG said the Group is shaped for growth. The intention now is to raise £30million net by way of a public-equity fundraising to eliminate debt, create the balance sheet strength required to win new business and to recruit, retain and incentivise employees with appropriate performance-based rewards to fuel its growth.

Paul Hamer, Chief Executive Officer, said:

“WYG has undergone tremendous change over the last two years. The operational restructuring of the business is now substantially complete and WYG is much better placed to exploit the opportunities available to us in our chosen international markets.

“Our immediate priority now is to complete a successful capital restructuring which would enable us to realise those opportunities and, overall, create a positive growth environment.”

During the financial period under review, WYG completed Europe’s largest water enhancement in Poland worth €60million and signed its first mutual cooperation agreement with a leading engineering consultant group in Beijing as part of its ongoing international growth strategy.

The Board said it is confident that the capital restructuring can be completed and the company will move forward successfully with a strong balance sheet. Further details of the proposed capital restructuring will be available by 30 June 2011.

For the nine months to 31 March 2011, financial highlights include:

• Gross revenues of £121.5million for the nine months to 31 March 2011 (year ended 30 June 2010: £220.6m)
• International revenues increased by 8 per cent (on an annualised basis) and now represent circa 35 per cent of whole
• Operating loss before exceptional and other items* of £0.3m (year ended 30 June 2010: profit of £7.7m)
• Strong cash performance, with cash generated from operating activities of £4.3m (year ended 30 June 2010: £2.3m)
• Net debt at 31 March 2011 reduced to £29.2m (year ended 30 June 2010: £33.9m)
• International order book increased to £104.0m (year ended 30 June 2010: £100.6m)
• Loss before tax of £28.6m (year ended 30 June 2010: £21.9m)

Revenues increased in all key overseas markets, including new wins by the recently established businesses in South Africa, Croatia and Bosnia-Herzegovina.

Reappointment to £5 million Environment Agency framework

However, WYG said that its UK and Ireland markets remain challenging. Recent UK wins include WYG’s reappointment to the Environment Agency’s four-year ‘National Site Investigation’ framework (NSIF3).

Estimated at £5 million, WYG said the framework also opens up the consultancy to other potential appointments for site investigation works by the Highways Agency and other government bodies, including local authorities.

WYG is one of five businesses to be appointed to the framework and will provide specialist site investigation services.

Gary Winder, Director of Geo-Environmental WYG said:

“We are delighted to have been re-appointed onto this national framework. This clearly demonstrates the robustness of our operational practices and the technical competence of our staff to deliver affordable quality solutions. The framework showcases our expertise in site investigation practices, which act to underpin our wider geo-environmental consultancy services and offerings to our various clients.”