WYG Regulatory News (WYG)

NOT FOR RELEASE BEFORE 07.00 HOURS ON 4 JUNE 2013

4 June 2013

WYG plc ("WYG" or the "Group")

PRELIMINARY RESULTS

Results ahead of expectations

Return to adjusted profit before tax for the full year

WYG plc, the global project management and technical consultancy, announces its audited preliminary results for the year ended 31 March 2013, highlights of which are as follows:

Financial overview:

·; Revenue of £125.7m (31 March 2012: £139.9m)

·; Adjusted operating profit* of £1.8m (31 March 2012: loss of £3.5m)

·; Adjusted profit before tax* of £0.7m (31 March 2012: loss of £5.8m)

·; Loss per share 5.3p (31 March 2012: earnings of 13.4p)

·; Adjusted earnings per share* of 0.9p (31 March 2012: 7.4p loss)

·; Unrestricted cash as at 31 March 2013 £14.8m (31 March 2012: £16.4m)

Key points:

·; Consensus beating results leading to a return to adjusted profit before tax* following a strong second half

·; UK Region returned to operating profit for the 12 month period*

·; Improved profitability across UK, Eastern Europe and Rest of World; stable profits in Middle East & North Africa (MENA)

·; Progress in reducing legacy costs continues to be ahead of plan; closure of loss making business in Republic of Ireland avoiding €5m of future costs

·; Cash performance in line with the Board's expectations

·; Lower revenues reflect a transition year due to planned focus on core markets

·; Well balanced revenues:

·; 40% of Group revenue derived internationally (2012: 44%)

·; Public, private and donor funded sectors account for approximately a third each

* Before separately disclosed items

Current Trading & Outlook:

·; Profitability since the year end is in line with expectations

·; Successfully winning work in key sectors (Urban & Commercial Development, Defence & Justice and Energy & Waste), despite subdued UK market conditions

·; Well-positioned for international growth opportunities due to donor-funded project expertise and relationships with key clients; demonstrated by recent contract wins on Western Balkans Investment Framework Infrastructure Projects Facility 3 (IPF3) and Climate Resilient Infrastructure Development Facility in Southern Africa (CRIDF)

·; Category 1 orderbook £77.6m (2012: £113.9m) of which:

·; UK: £29.3m (2012: £35.6m) - impacted by the decision to withdraw from Republic of Ireland

·; International: £48.3m (2012: 78.3m) - reflecting the planned withdrawal from bonded donor-funded work in EU. Since the year end international order intake has improved significantly

·; As at 31 March 2013, total orderbook coverage for the current year's expected revenue is 55% (2012: 63%)

·; Board anticipates full year profit will be approximately 10% higher than current market expectations

Paul Hamer, Chief Executive Officer of WYG, said:

"The Group's better than expected return to adjusted profit before tax for the year ended 31 March 2013 marks a significant new milestone in the progress of the Group. 

"In the UK, we have been successfully winning work in our key sectors, including Urban & Commercial Development, Defence & Justice and Energy & Waste, despite continued subdued UK market conditions. Outside the UK, our expertise in donor funded projects and our relationships with key clients continue to position us well for international growth opportunities, as demonstrated by recent contract wins such as IPF3 and CRIDF.

"We had a strong finish to the reporting year across our four regions and based on our most recent reviews of the business, underpinned by the 'self help' measures we have previously described, we now anticipate that the profit outturn for the current financial year will be approximately 10% higher than current market expectations for the year as a whole."

For further information, please contact:

WYG plc Tel: 0113 278 7111

Paul Hamer, Chief Executive Officer

Sean Cummins, Group Finance Director

MHP Communications Tel: 020 3128 8100

John Olsen/Katie Hunt/ Email: wyg@mhpc.com

James White/Vicky Watkins

Numis Securities Limited Tel: 020 7260 1000

Stuart Skinner (Nominated Adviser)

David Poutney (Corporate Broking)

Ben Stoop (Corporate Broking)

Chairman's letter

I am delighted to report the Group's better than expected return to adjusted profit before tax for the year ended 31 March 2013, marking the latest significant milestone in the progress of the Group.

WYG's trading performance has been driven by a continuation of the self help initiatives which led to the business achieving an adjusted operating profit at the half year. In the UK, where the market continues to be challenging, our core business reported modest growth as we continue to make good progress in our key sectors of Urban & Commercial Development, Defence & Justice and Energy & Waste. We have maintained our focus on working capital improvements and reducing overheads. In our overseas markets we have made demonstrable progress in reducing WYG's historical reliance on bonded EU donor-funded work, adding significant new clients and projects to our portfolio.

At the beginning of the year we took steps to use our positive net cash balance to improve the balance sheets of the Group's trading subsidiaries thereby enabling them to bid with greater confidence of a positive outcome on projects where, until recently, the Group's subsidiaries' financial covenant was often a barrier to winning such contracts.

As announced in August, the Group's four trading companies in the Republic of Ireland were placed into liquidation in September 2012, as a result of the extremely challenging trading conditions in Ireland combined with unsustainable property costs and legacy claims associated with the companies prior to acquisition. Following these actions, the estimated €5 million which would have been required to support the costs of these businesses is being redirected towards underpinning the growth initiatives of the wider business.

The Group's subsidiaries in Northern Ireland continue to trade profitably as part of the Group.

Revenue for the year was £125.7m (2012: £139.9m) and the adjusted operating profit was £1.8m (2012: loss of £3.5m). Adjusted profit before tax was £0.7m (31 March 2012: loss of £5.8m), reflecting the considerable improvement in profitability year on year, with a £1.1m adjusted profit before tax in the second half of the financial year compared with an adjusted loss before tax of £0.4m in the first half. On a statutory basis, the Group made a loss before tax of £3.3m (2012: profit of £11.9m). Earnings per share adjusted to exclude separately disclosed items was 0.9p (2012: loss of 7.4p).

As at 31 March 2013, the Group's category 1 order book stood at £77.6m (2012: £113.9m) which is made up of UK orders of £29.3m (2012: £35.6m) and international orders of £48.3m (2012: £78.3m). The UK orderbook has been impacted by the decision to withdraw from the Republic of Ireland and the reduction in the international orderbook reflects our planned diversification away from bonded donor-funded work in the EU. Since the year end, international order intake has improved significantly indicating that the international business is succeeding in diversifying into new areas of work in line with the Group strategy. As at 31 March 2013, total orderbook coverage for the current year's expected revenue is 55% (2012: 63%).

The Group closed the period with unrestricted cash at 31 March 2013 of £14.8m (31 March 2012: £16.4m). The Group continues to develop a culture which stresses the importance of cash generation and the effective management of working capital. Our rigorous focus on overhead and legacy costs has ensured that both measures continue to reduce ahead of our expectations.

Strategy

As the global macro-economic environment continues to shift and evolve rapidly, we have further refined and developed our Global Integrated Strategy to ensure the Group remains best-placed to capitalise in markets where investment remains strong and the need exists for our core services. In summary, we are focussed on:

·; Enhancing our competitive client offering - the continued review of the Group's operations and service offering to position the business at the strategic, high-end of the value chain whilst maximising our competitive position.

·; Creating growth - securing further gains in operational efficiency and profitability through the appropriate allocation of our human and financial resources into key sectors and geographies. The seven core market sectors we serve are: Defence & Justice, Energy & Waste, Environment (including water and waste water), Transport, Mining & Minerals, Urban & Commercial Development, and Social Development & Infrastructure.

·; Becoming a Global Group - building our business through the combination of our existing market position and client relationships, our ability to gain access to new markets by partnering and acquiring, and our people's unique skills and expertise to address and solve a number of select global challenges, namely:

o Fragile States and Stabilisation - working with military and donor clients to create stability and post-conflict restructuring across many fragile states.

o Preserving the Global Environment - ensuring that the world's growing population is served with the necessary energy and water infrastructure whilst minimising carbon impact and climate change. This challenge is faced by developed, emerging and third-world economies.

o Urban Development and Connected Cities - developing infrastructure related to population expansion, urbanisation and how people move from city to city as the world seeks to become super-connected.

Dividend

We continue to believe that, for the time being, any cash generated by the Group should be used to take advantage of the opportunities that exist to grow in WYG's chosen markets and to attract and retain talented employees. Accordingly, no dividend is proposed (31 March 2012: nil). The Board will continue to keep this under review.

Current trading and outlook

We have made considerable progress during the year, with encouraging momentum in the second half across our four regions driving a return to profitability. We now have in place a strong platform from which the Group can focus on achieving sustainable growth in line with our strategy.

The benefits of that improved platform are already being seen and, based on our most recent reviews of the business, underpinned by the 'self help' initiatives we have previously described, we now anticipate that the profit outturn for the current financial year will be approximately 10% higher than current market expectations for the year as a whole.

Business review

In the past 12 months we have made significant progress in achieving our goal of creating higher quality revenues through the delivery of our Global Integrated Strategy. 

We have continued to deliver on our programme of 'self-help' measures and driving down legacy costs - those relating to historical issues arising from the poor professional indemnity insurance performance and the sub optimal property portfolio from which WYG has operated in the UK and Ireland. Notably, we took decisive action to address the trading underperformance, unsustainable costs and legacy issues of the business in the Republic of Ireland. These and other actions have enabled us to complete the first limb of our strategy, enhancing our competitive client offering which will drive our future competitiveness.

Shortly after the year end, we were pleased to receive confirmation of our participation in the consortium that has been awarded a major donor funded contract for the Climate Resilient Infrastructure Development Facility (CRIDF) in Southern Africa, a two year contract worth £18 million with the possibility of extension subject to satisfactory performance. This, and other project wins and extensions during the year, demonstrate the progress we have made with the other elements of our strategy of generating good-quality international revenue and diversifying our client base through collaborative partnerships.

Across our regions, we enjoyed a strong finish to the year, generating operating profit before separately disclosed items in line with or ahead of forecast. Although revenue in the UK & Ireland region is down, this is largely as a result of the declining business in the Republic of Ireland prior to its closure five months into the period, and the restructuring of our Transport business. Excluding these factors, the continuing UK business reported modest revenue growth and good profitability.

As planned, revenues reduced in each of the Group's key overseas markets. However, this has delivered improved margins as we place less reliance on traditional EU donor funded work and direct our efforts to diversifying the portfolio of international work towards other donor providers and local public and private sector work.

Overall, we continue to expect the international business to increase as a proportion of the business as a whole, as reflected in our orderbook, and remain of the opinion that the prospects over the medium to long term are good.

We have also invested heavily in addressing performance and reward issues in the business, implementing a fair and transparent policy that aligns everyone to our business objectives and ensures that our performance and reward arrangements are correctly positioned in the context of the business strategy, with the aim of supporting the development of a high-performance culture.

Operationally, the Group was structured throughout the financial year, and reported, on a regional basis with the four regions being:

·; UK & Ireland

·; Eastern Europe (which includes CIS and Western Balkans)

·; MENA (Middle East & North Africa including Turkey)

·; Rest of the World - focussed on the international donor-funded market

With effect from 1 April 2013, we reorganised into three regions bringing Rest of the World within the leadership and support structure of Eastern Europe to form ESAA (or Europe, Southern Africa and Asia).

UK & Ireland (60% of Group revenue) - stable with significantly improved profitability

The UK & Ireland region generated revenue of £74.9m (31 March 2012: £78.9m) with an operating profit before separately disclosed items of £0.1m (31 March 2012: loss £4.7m).

In the UK we continue to work across the public, private and donor funded sectors and consider this diversity in our client base to be a key strength. Although trading conditions in our domestic markets continue to remain challenging, we have been successful in winning new work in all of these sectors.

We have seen a modest but encouraging upturn in activity from our house building clients particularly in the south of England. Supported by our environmental, landscape and engineering teams, our planners have secured permissions for a number of sizable urban extensions. Our urban design team has also carried out a number of significant public and private sector projects while our planning and environmental teams continue to support Sainsbury's in their ongoing property programme.

During the year, we have expanded on our pipeline of work programme with the Foreign and Commonwealth Office to assist in the management of an international portfolio of nearly 200 properties. We are also working with the MoD on their Base Optimisation Programme, which is considering the rationalisation of the entire UK military estate.

In our core sector of Energy & Waste, in addition to undertaking a number of projects in the diverse renewable energy and waste to energy fields, we have won new work with the Nuclear Decommissioning Authority and extended our longstanding involvement with the Sellafield Decommissioning Directorate, winning a major framework to provide strategic maintenance to their complete portfolio of assets for civil, structural, mechanical and electrical systems.

Our management services and engineering teams have won a number of new projects assisting universities in the improvement of their estates. Projects during the period include working with the Manchester Metropolitan University to provide a new centralised Business School & Student hub and at the University of Liverpool on the recently opened Vine Court, a £45 million student residential complex. This project was recognised for its excellence at the 'Your Move' 2012 property awards, who declared it winner of 'Best Student Accommodation'.

Eastern Europe (25% of Group revenue) - improvement in profitability

WYG in Eastern Europe operates through subsidiaries in Poland, Romania, Bulgaria, Croatia and Russia, and a region-wide network of offices. The region generated revenue of £32.0m (2012: £43.8m), with an operating profit before separately disclosed items of £1.5m (2012: £1.5m).

We continue to be heavily involved in the Social Development & Infrastructure Sector, implementing consulting and training projects for various governments and public authorities, as well as private sector clients, throughout the region. In Poland we trained over 26,000 individuals, including representatives of the public administration, owners and managers of businesses, employees seeking new skills, and unemployed people requiring re-training. As project managers we also started to support the authorities of the city of Burgas (Bulgaria) in implementing an ambitious programme for the development of its public transport infrastructure.

We have established a Western Balkans Management Board and the company infrastructure to take full advantage of the downstream opportunities available through the Western Balkans Investment Framework (WBIF), local government contracts, EuropeAid and, from June 2013, Croatia's accession to the EU. Within the multi-sector IPF3 project in the Western Balkans WYG was involved during this year in implementing such varied subprojects as: a toll study for motorways and a hydropower project in Bosnia-Herzegovina, an extension of the University of Zadar in Croatia, energy transmission lines in Albania, and a wastewater project in Mostar. Our collaborative joint venture in Russia with IMC Montan (in partnership with KPMG Moscow) continued to provide consultancy services in the Mining & Minerals Sector.

In this region, we expect to continue to benefit from the investments committed under the EU's 2007-2013 budget in the near term. In the medium term we expect to see growth in the more strategic upstream business, as Poland, Croatia, Bulgaria and Romania in particular gear up in preparation for the new phase of investments anticipated in the 2014-2020 EU budget cycle. We are also targeting a steady growth of private sector clients in the region's portfolio, offering a full range of services.

MENA (14% of Group revenue) - a year of investment

In the MENA region we generated revenue of £17.1m (31 March 2012: £15.3m) with an operating profit before separately disclosed items of £0.1m (31 March 2012: £0.1m).

WYG Turkey, Middle East and North Africa has continued to maintain its market leading position

in the delivery of EuropeAid projects including two programmes aimed at supporting Turkey in its progress towards EU accession: one providing technical assistance for building the capacity of EU Affairs in the Governorates, and the other delivering technical assistance on the Jean Monnet Scholarship Programme.

Our Ankara office has been awarded three important new framework contracts: one to assist the Ministry of Education and Training in Pakistan to promote positive awareness and recognition of the EU, another to assist the Federal Ministry of Water Resources in Nigeria and a third to help the Turkish Ministry of EU Affairs implement a grant scheme programme promoting dialogue between EU and Turkey. The new projects under these framework contracts, which will run for up to two years, together with the other frameworks we are currently working on, will underpin our operations as we seek to move into a new growth phase in this region.

We have also begun to diversify our portfolio of work to reduce our dependence on donor funded work and move further into the private and public sectors where, working with selected partners, we are testing new market opportunities for our core services. Our objective for the coming year is to secure this transition with a pipeline of new projects in the local public and private sectors. Our recently established Istanbul office has been awarded a commission to improve the tourism potential of Şanlıurfa, and project management services for new Foot Locker stores in Istanbul.

As part of our commission from the MoD, we have deployed teams to Camp Bastion and Kabul in Afghanistan where we provide support to the UK Works Group Royal Engineers in the maintenance of military and civilian infrastructure throughout the country.

In the Gulf, we have continued laying the building blocks for growth, entering into memorandums of understanding, strategic partnerships and collaborative arrangements as appropriate in UAE, Saudi Arabia, Libya, Qatar and Iraq. Having invested our resources in putting these trading platforms in place, the Group will seek to leverage its position in focussed sectors to secure new, front-end commissions with both new and existing clients.

Rest of the World (1% of Group revenue) - stable with improved profitability

In the Rest of the World - predominantly focused on the donor funded market - we generated revenue of £1.7m (31 March 2012: £1.8m) with an operating profit before separately disclosed items of £0.1m (31 March 2012: £0.3m loss).

This year a key goal has been to retain market leadership in the EuropeAid market, while opening new opportunities through diversification into the UK's DFID international assistance programmes. We are now Registered Contractors for the DFID Wealth Creation and Global Evaluation Frameworks - making us an approved bidder for DFID contracts. We are delighted to report that in February 2013 we were awarded our first DFID contract and we are confident of securing further work both directly and in partnership with others. During the coming year we expect to see many similar opportunities arising through these framework contracts and we believe, given our strong positioning with strategic partners, that WYG is well-placed to secure further success.

The year has also seen us consolidate our position in Southern Africa. We have continued to invest in the development of our African subsidiary based in Pretoria, South Africa. This has led to a sharper focus on opportunities with DFID, national governments and the public sector in the whole of Southern Africa and has been recognized after the year end by the award of the two year CRIDF contract described above.

Financial review

Revenue was £125.7m (31 March 2012: £139.9m). International revenues now account for 40% of all revenue - on an annualised basis. The Group made an operating profit before separately disclosed items of £1.8m (31 March 2012: loss of £3.5m) representing a key milestone in the Group's progress.

We have seen a significant improvement in business performance in the second half of the year, with an operating profit before separately disclosed items of £1.5m, which compares to £0.3m in the first half. We have maintained our focus on improving staff utilisation and continued to make better than expected reductions in overhead costs, particularly professional indemnity insurance, property and information technology costs. We will seek to achieve further benefits in productivity and overhead savings.

As a result of this focus on the performance of the business, profit before tax before separately disclosed items was £0.7m (31 March 2012: loss of £5.8m), reflecting a £1.1m adjusted profit before tax in the second half of the financial year compared with an adjusted loss before tax of £0.4m in the first half.

The Group has early adopted IFRS11 'Joint arrangements'. The comparative balance sheet has been restated accordingly, however there was no impact on profit or net assets.

On a statutory basis, the Group made a loss before tax of £3.3m (31 March 2012: profit of £11.9m), reflecting the impact of separately disclosed items in the year, details of which are set out in note 3.

The Group has significant losses brought forward in the UK and is unlikely to pay UK tax for the foreseeable future. However, we do generate profit in many of our overseas activities, upon which we pay local corporation tax.

The primary component of interest cost is the charge relating to the ongoing bond facility. Our success in reducing the number and quantum of bonds outstanding ahead of plan means that finance costs have more than halved to £1.1m (2012: £2.3m) and will reduce again in the current year. Profit per share adjusted to exclude separately disclosed items increased to 0.9p (2012: loss of 7.4p).

The Group closed the year with cash balances at 31 March 2013 of £18.6m (31 March 2012: £24.2m). Within the reported balance, we have an element of restricted cash, primarily associated with project specific commitments. At the year end, the restricted balance was £3.8m, leaving an unrestricted balance, our key performance indicator, of £14.8m (31 March 2012: £16.4m.) The reduction in the unrestricted cash value during the year is in line with expectations as we have applied a further £6.2m towards legacy issues including: ongoing commitments on unoccupied offices, settlements on professional indemnity insurance excesses together with redundancy and restructuring payments, albeit at a much lower level than in recent years. The cash cost of such issues should continue to reduce significantly over the coming year. The Group continues to be acutely focused on cash generation and the effective management of working capital. The initiatives we introduced last year directed at improving the working capital cycle, whilst reducing our use of advance payment bonds, have been reflected in the reduction of working capital days to less than 100 (2012: 110 days). We are targeting further improvements in this area as we realise the benefits of the changes we have made to our arrangements with consortium partners and as we have diversified our international portfolio to be less concentrated on EU donor funded work. Specifically, we aim to reduce our debtors and WIP working capital cycle this year to less than 90 days.

As at 31 March 2013, the Group's category 1 order book stood at £77.6m (2012: £113.9m) which is made up of UK orders of £29.3m (2012: £35.6m) and international orders totalling £48.3m (2012: £78.3m). 

CONSOLIDATED INCOME STATEMENT

For the year ended 31 March 2013

Operating (loss)/profit for the year includes net costs of £4.0m (2012: £17.7m net gain) that are separately disclosed in Note 3.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 March 2013

BALANCE SHEETS

As at 31 March 2013

The prior year has been restated as the Group has early adopted International Financial Reporting Standards 11 (IFRS 11) 'Joint Arrangements' in the period.

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the year ended 31 March 2013

CASH FLOW STATEMENTS

For the year ended 31 March 2013

The prior year has been restated as the Group has early adopted International Financial Reporting Standards 11 (IFRS 11) 'Joint Arrangements' in the period.

NOTES TO THE ACCOUNTS

1. GENERAL INFORMATION

WYG plc is incorporated and domiciled in England. The address of its registered office is Arndale Court, Otley Road, Headingley, Leeds, LS6 2UJ. The company's shares are traded on AIM, a market operated by the London Stock Exchange plc.

The principal activity of the Group during the period ended 31 March 2013 was that of consultant to the built, natural and social environment. The Group's revenue derives from activities in the UK and the Group's International division.

The preliminary results for the year ended 31 March 2013 have been extracted from audited accounts which have not yet been delivered to the Registrar of Companies. The Financial Statements set out in this announcement do not constitute statutory accounts for the year ended 31 March 2013 or the year ended 31 March 2012. The financial information for the period ended 31 March 2012 is derived from the statutory accounts for that year. The report of the auditors on the statutory accounts for the year ended 31 March 2013 was unqualified and did not contain a statement under Section 498 of the Companies Act 2006.

2. BASIS OF PREPARATION

Of the new standards, amendments and interpretations that are in issue and mandatory for the financial year end to 31 March 2013, there is no financial impact on this condensed consolidated financial report.

Items that are material and whose significance is sufficient to warrant separate disclosure and identification within the consolidated financial statements are included within separately disclosed items.

The Group has early adopted IFRS 11 'Joint ventures', IFRS 10 'Consolidated financial statements' and IFRS 12 'Disclosure of interests in other entities' in the period, this adoption has had no impact on profit or net assets.

3. DETAILED CONSOLIDATED INCOME STATEMENT

Details of separately disclosed items

The Group has incurred a number of material items in the year, whose significance is sufficient to warrant separate disclosure. The key elements included within separately disclosed items are:

·; Other costs include the net gain arising from the liquidation and reacquisition of the Irish business, employee termination and additional legacy restructuring costs. In the comparative period, the other costs relate to employee termination and restructuring costs.

·; Annual charge in relation to share option costs.

·; Annual charge for the amortisation of acquired intangibles.

4. SEGMENTAL INFORMATION

Business segments

IFRS 8 requires segment reporting to be based on the internal financial information reported to the chief operating decision maker. The Group's chief operating decision maker is deemed to be the senior management team comprising Paul Hamer (Chief Executive Officer), Sean Cummins (Group Finance Director) and Graham Olver (Chief Operating Officer). Its primary responsibility is to manage the Group's day to day operations and analyse trading performance. The Group's segments are detailed below and are those segments reported in the Group's management accounts used by the senior management team as the primary means for analysing trading performance and allocating resources. The Executive Committee assesses profit performance using operating profit measured on a basis consistent with the disclosure in the Group accounts.

The Group's operations are managed and reported by key market segments:

UK and Ireland

EE

MENA

ROW

The segment results for the year ended 31 March 2013 are as follows:

The segment results for the year ended 31 March 2012 are as follows:

5. DIVIDENDS

There were no dividends paid or proposed in the prior period or in the year ended 31 March 2013.

6. PROVISIONS, LIABILITIES AND OTHER CHARGES

Claims

Provisions are made for current and estimated obligations in respect of claims made by contractors and the general public relating to accident and other insurable risks arising as a result of the business activities of the Group.

Redundancy

Provision is made for current estimated future costs of redundancy and ex gratia payments to be made where this has been communicated to those employees concerned.

Vacant leasehold properties

The Group has a number of vacant leasehold properties, the majority of which are held under head leases expiring within the next five years. Provision has been made for the residual lease commitments together with other outgoings, after taking into account assumptions relating to later periods of vacancy.

7. CASH GENERATED FROM OPERATIONS

The prior year has been restated as the Group has early adopted International Financial Reporting Standards 11 (IFRS 11) 'Joint Arrangements' in the period.

8. ANALYSIS OF CHANGES IN NET CASH

Cash and cash equivalents includes £19,597,000 cash (2012: £25,428,000) and £953,000 overdrafts (2012: £1,137,000).

Restricted cash relates to restricted access accounts in WYG International Limited and cash held in joint operations. At 31 March 2012 it also included cash held by the Group's captive insurance company.

Other non-cash movements represent currency exchange differences.

ENDS