WYG says well placed to grow despite tough markets

The Leeds-based group will tell shareholders at its annual meeting today that overall trading has been in line with its expectations.

Chairman Mike McTighe said: “With a significantly improved balance sheet, a well-incentivised senior team and trading as anticipated, the board believes that the company is now well positioned to take advantage of growth opportunities.”

He added some signs of life are emerging in the UK, but conditions remain tough.

“As expected, trading conditions remain very challenging in the UK,” he said. “There are some encouraging signs regarding activity levels but these remain relatively modest and markets in the UK generally remain subdued and highly competitive.

“We continue to expect these subdued conditions to be offset by increased activity in specific areas of UK public spending where we have a strong historical position.”

WYG is focusing on defence work and has started on two of the Ministry of Defence’s largest estate programmes, including Germany Rebasing, and the procurement of the Next Generation Estates Contracts.

The company is also seeing a number of major development projects come back on line, which were put on hold in 2010 during the Strategic Defence and Security Review, and increasing work with the Ministry of Justice.

Globally, WYG said it has a strong pipeline of international opportunities. It is focusing on a five city strategy: Warsaw, Ankara, Moscow, Abu Dhabi and Shanghai.

The company recently completed a £30m fundraising that freed it of bank control and left it with cash to build the business.

“The recent placing has enabled us to take the steps necessary to create a positive growth environment within the company,” said Mr McTighe. “We have introduced new incentive arrangements to retain and recruit key staff and we are also seeking to recruit new employees to key positions to address market opportunities both in the UK, particularly in the South East, and also overseas to strengthen our global footprint.

“We are seeing an increase in the quality and number of applications for new positions.”