30th Jun 2009 07:00
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For immediate release |
30 June 2009 |
White Young Green plc
Pre-close statement
White Young Green plc (the "Company" or the "Group") is today issuing the following pre-close statement for the year ending 4 July 2009.
Trading
The Board's expectations remain unchanged from those announced on 18 May 2009.
As previously announced, White Young Green will incur significant exceptional costs in the year ending 4 July 2009. These exceptional costs arise predominately from the restructuring of the Group and relate to redundancy and office closure costs, impairment of goodwill and the writedown of work in progress and accounts receivable balances. The final level of impairment and writedown required will be determined following a balance sheet review after the year end, and will be announced as part of the Company's full year results announcement.
The Group continues to make significant progress in implementing its strategy which is centred on creating more focused and efficient businesses and internationalising WYG. The restructuring of the Group's operations is substantially complete as planned as the year end approaches. Whilst trading conditions across the businesses continue to be mixed and challenging, the Group has secured a number of significant contract wins in the UK, Republic of Ireland and overseas. These include:
WYG International has recently signed a €4.9 million contract to support the European Commission to deliver three year programme for regional development in Serbia
WYG International will be providing consultancy services under a project funded by the European Union aimed at ensuring the effective development and management of migration policy throughout Africa Caribbean and Pacific regions (ACP)
WYG Management Services has been appointed by the London Borough of Merton to project manage circa £7.5m of new buildings and facilities for the 6th Form Curriculum Entry at four schools in Merton (ahead of full redevelopment under Building Schools for the Future)
WYG Management Services will be supporting the Connect Plus consortium as Construction Design and Management Co-ordinator on a £1.25 billion project to widen key sections of the M25
WYG Environment has been commissioned by Hertfordshire County Council to advise them on the environmental issues on a site in Hatfield to be potentially used as a long term residual waste treatment service
Financing
As previously announced, White Young Green is in discussions with its lenders with a view to renegotiating its existing banking facilities. As part of this process, the lenders have agreed to defer the forthcoming covenant test date from the year end date initially to 31 July 2009. The margin on the banking facilities has been increased to 3.0% above LIBOR. The Board expects that a further deferral of the covenant test date will be requested. A further announcement will be made in due course as appropriate.
Enquiries:
White Young Green 0113 278 7111
Paul Hamer, Chief Executive Officer
David Wilton, Group Finance Director
Buchanan Communications 020 7466 5000
Lisa Baderoon
Related Shares:
WYG