WYG (WYG) has had a bumpy ride over the past 12 months; reported profits for the March year-end were hit by a series of charges, including a write-down on the value of goodwill, which meant operating profit fell by a third to £1.6m. But these full-year results should mark the turning point for the project management and consultancy group. After announcing that it was open to takeover approaches in January, management has decided to go it alone - unsurprising given that the group's order book is up by a fifth to £105m. Things are looking up.
In September, The group's core UK business acquired Alliance Planning, which has been immediately earnings enhancing. Post year-end the business also purchased specialist transport and infrastructure consultant FMW. Revenue for the UK increased 15 per cent to £83.9m.
However, revenues for WYG's Europe, Africa and Asia segment pulled back by a fifth as the approval process for the EU budget was delayed. As a consequence, large infrastructure projects financed by the EU were slow to emerge. Nevertheless, prospects for the business segment are encouraging, not least because of the opportunities that could flow from an estimated £400m pipeline of major projects across Africa. WYG's ability to exploit this situation has been enhanced by last year's acquisition of Delta Partnership Solutions.
Broker WH Ireland expects adjusted EPS of 10.1p this financial year, up from 8.6p in 2015.
WGY (WYG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 107p | MARKET VALUE: | £71m | |
| TOUCH: | 105-108p | 12-MONTH HIGH: | 117p | LOW: 99p |
| DIVIDEND YIELD: | 0.9% | PE RATIO: | 37 | |
| NET ASSET VALUE: | 33p* | NET CASH: | £11.4m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011** | 121 | -28.6 | -35.7 | nil |
| 2012 | 140 | 11.9 | 13.4 | nil |
| 2013 | 126 | -3.3 | -5.3 | nil |
| 2014 | 127 | 1.8 | 3.2 | 0.5 |
| 2015 | 131 | 1.4 | 2.9 | 1.0 |
| % change | +1 | -19 | -9 | +100 |
Ex-div: 1 Oct Payment: 6 Nov *Includes intangible assets of £18.7m, or 28p a share **Nine months to 31 March | ||||
