18 Mar 2019 12:42
18 March 2019
WYG plc
("WYG" or "Company")
Temporary Waiver of Banking Covenants and Cancellation of Interim Dividend
WYG, the international professional services company, today provides the following update on its banking facilities and the status of its interim dividend.
Banking facilities
On 13 February 2019, the Company announced a trading update stating, among other things, that due to a challenging trading environment in the final quarter of the Company's current financial year, the Board expected the Company would not meet either of the net debt to EBITDA or interest cover covenant tests within its bank facility agreements on 31 March 2019.
Further, the Company announced that it had opened discussions with the bank to secure a waiver of the relevant covenant tests. The Company is pleased to announce that the bank has now confirmed its agreement to waive the 31 March 2019 covenant tests and that constructive discussions in relation to the covenant structure attaching to the facilities continue.
Dividend
On 4 December 2018, the Company declared an interim dividend of 0.6p per ordinary share, which is due to be paid on 4 April 2019.
Notwithstanding the waiver received from the bank and in light of the challenging final quarter, the Board has made the proactive decision to focus on managing its balance sheet and, accordingly, to cancel payment of the interim dividend.
Douglas McCormick, Chief Executive Officer of WYG, commented:
"As explained in our update in February, trading conditions have been unusually challenging in the final quarter of our current financial year and this waiver together with the cancellation of the dividend will provide us with the flexibility to manage the Company's balance sheet in the near term.
"Our recent discussions with the bank have been productive, giving us an opportunity to explain our confidence in, and outlook for, the business as well as outlining the proactive measures being taken by the Board to reduce our cost base."
This announcement contains inside information for the purposes of
Article 7 of Regulation (EU) 596/2014.
Contacts:
WYG plc Douglas McCormick, Chief Executive Officer
| Tel: 0113 278 7111 |
MHP Communications Katie Hunt / Ollie Hoare / Peter Lambie
| Tel: 020 3128 8100 |
N+1 Singer Sandy Fraser / Rachel Hayes / Justin McKeegan
| Tel: 020 7496 3000 |
ENDS
Notes to editors:
About WYG
WYG is an award-winning professional services firm operating from more than 50 locations across the UK, Europe, Africa, and Asia. We are driven by client service and underpinned by technical excellence. We help our clients create value, protect value, and manage risk. We are the partner of choice for organisations operating in complex or challenging environments.
We serve our clients through six business streams:
· International Development
· Infrastructure & Built Environment
· Programme & Project Management
· Surveying & Asset Management
· Environmental
· Planning and Transport
WYG plc's shares are traded on AIM, a market operated by the London Stock Exchange.