WYG Regulatory News (WYG)

23 March 2017

WYG plc

("WYG" or "Company")

Trading Update and Notice of Results

WYG, the global programme, project management and technical consultancy, today provides the following trading update ahead of the Group's financial year end on 31st March 2017.

The Board expects revenue for the year to exceed £150m representing year-on-year growth of c. 13%, in line with market expectations, but has revised its expectation of operating profit (before separately disclosed items and share based payments) to a figure approaching £9m. This nevertheless represents a profit improvement of close to 25% year-on-year. Net debt at the year end is expected to be around £6m. Separately disclosed items, excluding amortisation of acquired intangible assets and share based payments, are expected to be approximately £2.5m including, as explained below, a charge for the restructuring of our Polish operations.

Activity levels in the UK have increased during the year. Although revenue during the fourth quarter, traditionally the Group's strongest trading period, is expected to be higher than in the same period last year, a combination of programme deferrals on existing contracts and some delays in the confirmation of new contracts has led to weaker than anticipated profit performance. Frustratingly, the Group's higher margin service lines have seen a greater incidence of project delays. This, together with the investment we have made in building our UK capacity in anticipation of even higher activity levels that have not materialised, is expected to result in UK profitability for the year being lower than in 2016.

The performance of our international operations is ahead of expectations in both revenue and profit, with the MENA region performing particularly strongly. With the exception of certain of our operations in Poland, which are now being restructured, all other areas of our international business have delivered good performances and the pipeline of opportunities remains encouraging across all regions.

Reassuringly, we have seen no material project cancellations and, as at the end of February, the Group's order book of secured contracts was approximately £150m, broadly unchanged on the position at March 2016 notwithstanding the substantial increase in revenues booked during the period.

Overall, the strength of our order book, particularly the level of cover for the coming financial year, and future pipeline is such that our expectations for the financial year ending 31st March 2018 remain unchanged. We will provide a more detailed update on trading in the final results for the year ending 31 March 2017 which are expected to be released on 6 June 2017.

Paul Hamer, Chief Executive Officer of WYG, commented:

"Whilst our profit performance in the UK will not be as strong as we expected, growth across the Group and particularly the performance of our international operations provides tangible evidence that the Group's strategy to build a more broadly based, resilient and balanced business is starting to bear fruit."

This announcement contains inside information for the purposes of

 Article 7 of Regulation (EU) 596/2014.

Contacts:

ENDS

NOTES TO EDITOR

About WYG

WYG is a leading programme, project management and technical consultancy employing over 1,600 people and operating from more than 50 locations across the UK, Europe, Africa, Asia and the Middle East. We specialise in creating and managing strategic assets for our clients. We engage with them in the early stages of a project, and often continue to advise them throughout its lifecycle.

Outside the UK, we have a strong, longstanding presence in a number of EU member states and pre-accession countries. We are a leader in international development, exporting our knowledge and networks to undertake ambitious projects that make a positive impact on infrastructure, socio-economic growth and the environment. Our in-house expertise encompasses seven global sectors: defence & justice, energy & waste, environment, mining & metals, social development and infrastructure, transport, and urban development. We also bring together a network of more than 20,000 partners and associates from around the world. This breadth of skills and knowledge allows us to provide a unique integrated approach to solve complex challenges wherever in the world our clients need us.

WYG plc's shares are traded on AIM, a market operated by the London Stock Exchange.