WYG warns 1H operating profits will be significantly lower than expected
WYG, the global programme, project management and technical consultancy, said operating profits at the half-year stage would be "significantly" less than previously anticipated due to a plethora of factors, but added that full-year revenues were still seen higher in comparison to the year ago period.
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On Friday, the group said that two major projects had taken longer than anticipated to start in its International Development business. In the case of Turkey, delays in funding from the pre-accession assistance instrument between the first and second phases of work were an issue.
Its Planning and Transport Planning practices had also performed below expectations in the early months of 2017, the company said, alongside weaker-than-expected trading at its real estate business. Yet an improved performance in all of these business units was expected over the second half.
The weaker-than-expected trading seen in the first six months of the year and its impact on the company's working capital were also expected to take their toll on the company's net debt position.
Despite all of the above, full-year revenues were still on track to exceed £160m, in-line with market expectations, the company added.
Furthermore, the order book continued to be replenished and remained stable at £144m, which together with the 'visibility' it had on its future pipeline led management to expect a significant recovery in performance for the backhalf of 2017.
Striking a positive note, WYG boss Douglas McCormick said: "I have visited some 20 of our offices and spoken with several hundred of our staff in my first three months and I am firmly of the view that the underlying business is a sound platform from which to grow in the medium term."
The company's shares were down -42.16% to 53.50p by 12:16 BST