9th Jun 2015 09:47
LONDON (Alliance News) - WYG PLC said Tuesday it is trading in line with its expectations in its current year citing an improved order book, as it posted a decline in pretax profit for its recently ended financial year.
WYG provides project management and technical consultancy services.
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 cited increasing momentum in its UK business, boosted by increasing investment in major infrastructure projects.
The company said a slower-than-anticipated ramp up of the new EU funding cycle hit its business in the European Economic Area, although Romania, Bulgaria and Russia all provided positive contributions. In Africa it saw delays on new projects, but said work is now underway on the first two projects, and it has a number of other projects in its current year.
WYG said its order book is GBP69.2 million, compared to GBP53.0 million at the same time last year.
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.
WYG proposed a final dividend of 0.7 pence, taking its total dividend for the year to 1.0 pence, doubled from 0.5 pence a year before.
"Having enjoyed a strong finish to the year, WYG remains well positioned for future growth with the benefit of a healthy order book and recent acquisitions combined with the opportunities presented by a buoyant UK market, a new EU funding cycle and the planned interventions by Department for International Development and other funding institutions in fragile and conflict affected states," said Chief Executive Officer Paul Hamer in a statement.
Shares in WYG are trading up 2.9% at 107.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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