Leeds-based WYG plc, the international professional services business, today said it had experienced a challenging financial year, but a strategy is in place to improve its performance.
In the year ended March 31 2019, revenue increased by 1.7 per cent to £157.0m and the company’s loss before tax was £4.6m.
A recommended cash offer by Tetra Tech UK Holdings, a wholly owned subsidiary of Tetra Tech, Inc., to acquire WYG for 55p per share was announced on May 20 2019.
The firm’s consultancy services revenue was down 1.2 per cent at £117.9m, which reflected difficult final quarter in the UK, WYG said.
Douglas McCormick, the chief executive officer of WYG plc, commented: “Although this has been another challenging year for WYG, we have taken decisive steps to implement our strategy of delivering a simpler, more robust platform and driving efficiencies which are beginning to take effect. We have won or renewed our place on many key frameworks and secured a number of major new projects which will underpin a significant proportion of our projected earnings for FY20 (full year 2020) in both our primary business streams.
“On May 20 2019, it was announced that the board had reached agreement on the terms of a recommended cash offer by Tetra Tech to acquire the company at 55p per share, representing a premium of approximately 244 per cent to the closing share price on May 17. Becoming part of Tetra Tech enables benefits of scale and access to expertise across highly complementary geographies and client relationships, and brings operational infrastructure and financial strength to support WYG’s long term growth ambitions.
“Going forward, whether we become part of the Tetra Tech Group, providing the benefits of scale and access to expertise across highly complementary geographies and client relationships, or with a strengthened balance sheet through the implementation of a fundraising and our recovery plan, we believe WYG is well placed for a return to profitability and positive cash flows.”