13th Nov 2008 07:00
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For Immediate Release |
13 November 2008 |
WHITE YOUNG GREEN PLC
Interim Management Statement
White Young Green Plc ("WYG"), the multi skilled consultancy, operating across the built, natural and social environment today provides its Interim Management Statement which covers the period from 1 July 2008 to date.
Trading
Trading during the period has been subdued with market conditions having become more difficult over the course of the first half. It is expected that these challenging conditions will continue into the second half of the financial year. The Company has already responded to these challenges and is taking the following actions:
in addition, redundancies have been made in those areas of the business experiencing reduced demand; other staff have been redeployed into more buoyant areas within the public sector such as healthcare, education and infrastructure. It is anticipated that redundancy costs of £1.1m will be charged in the results for the half year. On an annualised basis these redundancies are expected to save £4m;
the focus on realising cash from working capital has been intensified; and
restrictions on capital expenditure have been introduced to conserve cash.
Profit in the first half of the year is now expected to be slightly lower than the equivalent number last year before charging the cost of the redundancies.
The first half of the year will, as expected, see a significant cash outflow including £3.6m paid as additional consideration for previous acquisitions. The Group continues to operate well within its banking facilities of £112m, £100m of which are committed until 2012.
The Group has continued to secure high profile project awards over the period both internationally and in the UK including the following:
€4.7m project in Ukraine for the European Commission ("EC") to support the country's World Trade Organisation and European Neighbourhood Policy framework
€1.9m technical assistance project from the EC to support the implementation of the Rural Development Sector programme in Cyprus
South West Property Consultants Framework.
Management of a four year framework agreement on behalf of a collaborative group of public sector bodies in SW England to service a property and capital programme of £100m per annum providing engineering, health & safety and project management consultancies
New Medical Research and Innovation Project - London.
UK Centre of Medical Research and Innovation will create an internationally renowned science facility near King's Cross, London with a project value of £500m. WYG has been appointed to deliver high quality structural engineering consultancy services.
The Group remains confident that its diversified business model, with no disproportionate dependence on any one sector or client, will prove to be resilient in current market conditions. Overall the Board now expects, following the management actions described above, that the full year result will be slightly lower than its previous expectations.
Peter Wood, Chairman of WYG commented:
"The business has reacted quickly to these challenging conditions and is adjusting its cost base, focusing further on cash generation and looking to exploit sectors of the economy where there continues to be sustainable demand. These changes will help the Group to come out of the current economic downturn with a more efficient cost base and business model and enable it to more profitably exploit future opportunities."
For more information please contact:
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WHITE YOUNG GREEN PLC |
Tel: (0113) 278 7111 |
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Lawrie Haynes, Chief Executive Officer |
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Bob Hartley, Finance Director |
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BUCHANAN COMMUNICATIONS |
Tel: (020) 7466 5000 |
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Tim Anderson / Rebecca Skye Dietrich |
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