The management of technical consultancy and project management group WYG (WYG) has decided the company is not big enough to take advantage of all the business opportunities it is seeing so has put up the “for sale” sign.
Over recent years WYG has refocused its business on planning work in the UK and international development and when it reported half year results in December said there had been a significant increase in the pipeline of business opportunities. Indeed, management now reckons the current strategy of pursuing organic growth supplemented with the odd bolt-on acquisitions is not enough to exploit these rich pickings. Selling the business outright or being acquired by a larger company are some of the options on the table but a number of alternatives options are to be considered by a strategic review.
The shares offer a compelling proposition. The company focuses on longer-term projects many of which, on the international front, are funded by large public bodies such as the EU or World Bank. Meanwhile, much has been done to restore profitability, but there could still be a long way to go in rebuilding margins. Indeed, the half-year operating margin of 3.3 per cent compares with a peak margin of almost 8 per cent in 2008.
