10th Jun 2015 11:56
LONDON (Alliance News) - WH Ireland retains its positive stance on WYG after the company said Tuesday it is trading in line with its expectations in its current year, citing an improved order book, as it also posted a decline in pretax profit for its recently-ended financial year.
The broker says the results from WYG, which provides project management and technical consultancy services, are "very encouraging", as the net debt figure was in line with the broker's expectations. WYG said it is net cash-positive to GBP11.4 million.
For the year to end-March the company posted a pretax profit of GBP1.4 million, down from GBP1.8 million a year before, as a rise in revenue to GBP128.7 million from GBP126.9 million was offset by a rise in operating expenses.
The company recently underwent a strategic review, and said during the process it received high levels of potential interest, but none "appropriately valued" its future prospects. As a result, the company concluded that its best route was to remain independent.
"We welcome the conclusion that the interests of stakeholders would be best served by the company remaining an independent quoted entity, given the substantial upside that we see to WYG?s numbers," says WH Ireland analyst Nick Spoliar.
WH Ireland, which is a market maker and acts as a corporate broker for WYG, retains a Buy recommendation and a price target of 165 pence for the stock.
Shares in WYG are trading up 1.2% at 107.75p Wednesday afternoon.
By Daniel Ruiz; [email protected]
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