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AIMprospector

Good times return to WYG and Asia brought in 31% of sales, with Middle East and North Africa (MENA) delivering the rest.

turnaround that has been achieved at WYG is massive

Back in profit and declaring a dividend, the recovery at engineering consultant WYG looks confirmed. Shares in WYG perked up at the end of March following the release of encouraging trading news. This statement ticked all of the boxes for investors. WYG announced that its order book was 13% ahead of the same point last year. The full year profit before tax is now expected to come in more than 10% ahead of the market’s expectations at the time (i.e. a profit upgrade). To cap it, WYG confirmed that it would be paying shareholders their first dividend after more than four years of no payouts.

role included work on planning and project management Headquartered in Leeds, WYG brings together design, engineering, plan and project management expertise for large-scale infrastructure projects worldwide. At the halfway stage, the UK accounted for just over half WYG’s revenues. Europe, Africa 10

One example of WYG’s work is the ambitious Liverpool Waters regeneration project. This is a multidecade scheme dedicated to the regeneration of Liverpool’s historic dockland and is second in scale only to London’s Olympic project. Here, WYG worked with developer Peel Holdings over a five year period. WYG’s role included work on planning and project management, energy and flood protection. Planning permission was granted by the Secretary of State in 2013. The MENA division provided infrastructure planning and design for Murooj Jeddah, an ambitious new eco-city in Saudi Arabia. WYG’s contribution here ranged from social and environmental work to transport and waste planning. Liverpool and Murooj Jeddah are useful examples of how WYG’s expertise is used to turn major infrastructure initiatives into firm plans. The recent newsflow is even more commendable when you consider where the company was just a few years ago. The turnaround that has been achieved at WYG is massive. Previously named White Young Green, WYG was formed after its parent company encountered serious financial

difficulties in the depths of the financial crisis. Saving White Young Green required a significant debt-forequity swap and a covenant deferral. WYG moved from the Main Market to AIM in February 2010. The company delivered another significant step toward rehabilitation in August 2012 by winding-up its Irish operations. The cost in this business was anchoring WYG’s recovery. Since this decision, shares in the company have more than doubled.

shares in the company have more than doubled WYG’s most recent profit upgrade is the third that management have delivered for the financial year just closed. This has seen EPS expectations for the full year rise from 3.6p 12 months ago to 4.4p today. Since its successful restructure, WYG now enjoys a significant net cash position. As the economy improves both at home and abroad, WYG now has the footing necessary to continue delivering significant growth. WYG (LON:WYG) FOR Position with MoD promises further large sales Balance sheet supports acquired growth AGAINST Progress appears priced in Any slip will be punished Market cap Bid:offer P/E (forecast) Yield (forecast) 52week low:high

£71m 106p:112p 22.4 0.3% 74p:120p

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May 2014 AIM Prospector  
May 2014 AIM Prospector  

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