WYG celebrates rise in orders thanks to recovery

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Design and engineering consultancy WYG reported a strong rise in its order book as the group’s recovery gathers pace and it wins lucrative contracts in Europe and Africa.

The Leeds-based firm said its UK business is also expanding as the economy heats up and the group is managing to steal market share from rivals.

WYG has been undergoing a transformation over the past three years and the group said it is now in a position where its reputation means it can bid for fewer contracts and win more.

WYG, which helped run Camp Bastion, the main military base in Afghanistan, before the British and American forces pulled out in October, said underlying pre-tax profits rose 35 per cent to £2m in the half year to September 30 although it made a £400,000 pre-tax loss following share option costs.

Revenues were flat at £63m.

Analyst Nick Spoliar at WH Ireland said: “A strong set of first half results shows profits/earnings rising substantially and well supported by a double digit increase in the order book.

“Trading has been strong across the geographies, with infrastructure and planning vigorous in the UK, where the company has also enjoyed a very positive win-rate in its framework agreement bids.”

As a sign of its confidence in the future, WYG said it will resume half year dividend payment and will pay out 0.3p a share.

WYG’s chief executive Paul Hamer said: “Three years ago the group was in a very different position, losing money. We are returning to growth and we see that in the order book. We are looking like a more normal company rather than a restructuring one.”

The group reported a 13 per cent increase in UK revenue to £40m, driven by buoyant infrastructure and planning markets.

“The mix is 60 per cent public and 40 per cent private,” said Mr Hamer.

“A lot of it is around housebuilding and major developments. Private money is flooding back into the sector.

“We are also busy with transport around the UK.

“There is no doubt the 
UK economy is hotting up 
and we are also taking market share.”