Reported full-year earnings for WYG (WYG) came up short of the 2016 comparative, as the engineering consultancy registered £4m in restructuring charges. Disregard these, along with amortisation and share option costs, and adjusted operating profits were up a fifth at £8.8m.
Growth in the prior year order book was reflected in a strong revenue surge, but margins came under pressure as the group had prepared to fulfil several work programmes that were subsequently delayed. Management responded by reducing costs and deferring expenditure, but the situation was exacerbated by the fact that it was the "higher-margin service lines that saw the greatest incidence of project delays".
In addition to "mainstay" operations like the infrastructure programme in the western Balkans, the group has continued to broaden its international scope, evidenced by the post period-end framework deal struck with the UK government for a water management programme serving the Climate Resilient Infrastructure Facility in southern Africa.
It was announced separately that chief executive Paul Hamer will be leaving WYG to be replaced by Douglas McCormick, formerly head of Sweett Group (CSG).
WH Ireland gives adjusted pre-tax profits of £10.7m for the year ending March 2018, leading to EPS of 14.2p, against £8.2m and 11.9p in FY2017.
| WYG (WYG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 103p | MARKET VALUE: | £72m | |
| TOUCH: | 100-105p | 12-MONTH HIGH: | 145p | LOW: 91p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 31 | |
| NET ASSET VALUE: | 45p* | NET DEBT: | 8% | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 126 | -3.3 | -5.3 | nil |
| 2014 | 127 | 1.8 | 3.2 | 0.5 |
| 2015 | 129 | 1.4 | 2.9 | 1.0 |
| 2016 | 133 | 2.2 | 4.0 | 1.5 |
| 2017 | 152 | 1.6 | 3.3 | 1.8 |
| % change | +14 | -28 | -18 | +20 |
Ex-div: 7 Sep Payment: 3 Oct *Includes intangible assets of £25.5m, or 37p a share | ||||
