WYG Regulatory News (WYG)

27th March 2014

WYG plc

Trading Update

Highlights:

· Expected full year result to 31 March 2014 10% ahead of expectations

· New £15m trade finance facility with Santander UK plc agreed

· Acquisition of Delta Partnership Solutions extends aid agency relationships and programme management capability in Africa

· Order book increased by 13% since March 2013

· WYG to resume dividend payments

WYG plc ("WYG" or the "Group"), the global management and technical consultancy to the built and natural environment, today provides an update on trading for the year ending 31 March 2014, in advance of the announcement of its final results which is expected to take place on 3 June 2014.

Following a strong finish to the year, we now anticipate profit before tax for the full year to 31 March 2014 to be approximately 10 per cent higher than current market expectations, reflecting an improvement in the quality of revenues which, at the end of February, have increased slightly overall, and a considerable improvement in operating margins.

In the UK, the continued economic recovery is stimulating activity across many of our sectors and the outlook for consultancy is encouraging, albeit with some variability regionally and pricing remaining competitive. We have focussed our efforts on retaining the major, long term framework agreements that underpin our work and on maximising the opportunities that these provide.

New opportunities in our overseas markets continue to emerge in both the international development markets and the more traditional private markets. As previously referred to, the delay in agreeing the next seven year EU budget has had a knock-on effect on the pipeline of new work for Poland and Turkey. However, our work with UK Government departments (MOD, FCO, DFID) continues to grow and the Group is now strongly positioned to secure new contracts across DFID's Fragile and Conflict Affected States (FCAS) framework, with a particular focus on Africa.

We are pleased to announce three important developments:

· We are pleased to confirm that we have been successful in retendering all four of the major UK frameworks that were re-let last year and on which a decision has been announced to date and we remain confident that we will secure further major frameworks in the near term.

· On 24th March, we agreed a new £15m trade finance facility with Santander UK plc. We intend to use the facility both to support our existing activities in Central Europe and Turkey and to selectively re-enter certain markets where our new financing arrangements will support the pursuit of infrastructure development contracts with a more attractive working capital profile.

· On 10th March, we completed the acquisition of Delta Partnership Solutions Limited. Delta is an established business with a small but experienced team of permanent consultants and a large network of associates dedicated to improving the lives of people living in poverty. They have an excellent track record of working around the world on programmes to deliver better public services including for the governments of Kenya, Uganda and Rwanda, the bi-lateral aid agencies of Norway, Canada, Belgium, the UK and Sweden, as well as a broad range of non-government organisations and foundations. Delta is headquartered in the UK and has offices in Nairobi, Kenya and Kampala, Uganda.

With improving levels of order intake, particularly in the UK and through our expanding work in FCAS, our category 1 order book has grown from £77.6m at 31 March 2013 to £88.0m at 28 February 2014.

Following the Group's strong finish to the year and the positive developments announced today, the Board now confirms that the Group will return to the dividend list this year, further details of which will be provided with our full year results announcement in June.

Paul Hamer, Chief Executive Officer of WYG plc, said:

"This has been another positive period for WYG. Against the backdrop of an improving trading environment, we have won important new business, improved the scale and profile of our order books, and further strengthened our business through acquisition and other investments for future growth.

"That we are able to confirm our resumption of dividend payments underlines the Board's confidence in continued progress as we move into the next financial year with a strengthened financial position, a healthy pipeline of opportunities and a continued focus on enhancing profitability."

ENDS

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 / Vicky Watkins / Ollie Hoare

N+1 Singer Tel: 020 7496 3000

Sandy Fraser / Richard Lindley

WH Ireland Limited Tel: 0113 394 6600

Andrew Kitchingman / James Bavister