WHY White Young

 

TIDMWHY 
 
RNS Number : 3787S 
White Young Green PLC 
18 May 2009 
 

For Immediate Release18 May 2009 
 
 
White Young Green plc ("WYG" or the "Group") 
Interim Management Statement 
 
 
 
 
WYG, the international multidisciplinary consultant, is today issuing an Interim 
Management Statement for the third quarter ended 31 March 2009 and subsequent 
period to 18 May 2009. 
 
 
As indicated in the Interim Report dated 25 February 2009 (the "Interim 
Report"), trading conditions across the businesses continue to be mixed and more 
challenging than those experienced in the first half of the financial year. 
 
 
Significant progress has been made in implementing the Group's strategy which is 
centred on creating a more focused and efficient businesses and 
internationalising WYG. Decisive action has been taken to restructure the 
Group's operations. Total Group headcount has reduced by 324 between 31 December 
2008 and 30 April 2009 in addition to the reduction of 235 announced in the 
Interim Report. WYG has announced the closure of seven regional offices and 
expects to announce the closure of a further five by the year end as it 
concentrates on stronger, quality focused regional centres. 
 
 
As expected, WYG will incur significant exceptional costs during the second half 
of the financial year including redundancy costs and costs arising upon office 
closures. The majority of the exceptional costs relating to office closures are 
provisions for rent and associated costs that will be paid in the future on due 
dates in accordance with lease agreements. 
 
 
Given the extensive restructuring of the Group, particularly in the Republic of 
Ireland, the Group will review the value of goodwill on its balance sheet at the 
year end and there will be a non-cash impairment charge. 
 
 
The Group continues to focus on working capital management and cash generation 
and its net debt position remains broadly similar to that at the half year. 
 
 
As previously reported WYG is in discussions with its lenders. These discussions 
are ongoing and the Board expects to make a further announcement in due course. 
 
 
The Board is encouraged by the progress being made in the implementation of its 
strategy. The Board now expects that the full year profit before taxation and 
amortisation and before exceptional costs to be in the region of GBP12million. 
 
 
A commentary on each of the five business units is set out below. 
 
Engineering: 
 
 
In line with its strategy of creating high quality and focused regional centres, 
the Engineering Business Unit has significantly reduced its staff numbers and is 
rationalising its current operating centres. This process will be completed by 
the end of June 2009. 
 
 
The Engineering Business Unit has experienced a more challenging market which 
has seen a reduction in the rate at which orders are being received in some of 
its markets. However, orders continue to be received in the publicly funded 
Rail, Nuclear and Education sectors and in property maintenance. 
 
 
Following a focus on international markets in Eastern Europe and the Middle 
East, the Business Unit continues to see a stream of opportunities and projects 
coming forward which will support Engineering's move to diversify its revenue 
streams into markets where the Group already has a successful track record. 
 
 
Recent new projects include: 
  *  Appointed by Network Rail to work on the North London Line which will run from 
  Richmond to Stratford and serve the Olympic Park; 
  *  Appointed by Network Rail and Transport for Scotland to the Edinburgh-Glasgow 
  multi modal (Rail, Tram, and Airport) connection services which will service 
  over 15 million users; and 
  *  Selected by Skanska to carry out mechanical and electrical services on the All 
  Saints Academy Cheltenham, which provides new Education facilities for 1200 
  pupils. The project is part funded by the Church of England 
 
 
 
Management Services: 
 
 
The Management Services Business Unit continues to deliver solid profits despite 
trading conditions remaining mixed across the commercial client base. Turnover 
in the year to date is relatively similar to the same position last year, with 
an increase in Public Sector workload from 45 to 65%. This reflects a flexible 
and sustainable business model capable of transferring workload in a relatively 
short time frame. The Business Unit is responding proactively to changing market 
demand by constantly monitoring resources against order intake and, where 
appropriate, introducing flexible working conditions along with efficiencies in 
the operating cost base. 
 
 
Recent New Projects include: 
 
 
  *  McDonalds - providing Employers Agent and Quantity Surveying services across the 
  wide ranging refurbishment programme currently underway; 
  *  Festival City Cairo - executive project management for a GBP200m large and 
  complex shopping centre development; and 
  *  MoD - RAF term commission year 5 - extension to an existing framework agreement 
  for the specialist term commission for buildings and facilities to six RAF 
  operational bases in England and Scotland to provide specialist support to the 
  Royal Air Force, Defence Estates and The Royal Engineers 
 
 
 
Environment Planning Transport: 
 
 
The solid performance of the Environment Planning Transport (EPT) Business Unit 
has continued from the first six months of the financial year into the current 
period. 
 
 
Demand remains good in planning, transport and in many environmental consultancy 
disciplines (particularly for public sector clients).  However, demand has 
softened in a few areas such as the remediation of contaminated land and, as a 
result, part of the EPT Business Unit has been restructured to ensure resources 
are aligned to demand.  Measures taken include flexible working within some 
environmental disciplines. 
 
 
Whilst demand in the period has continued from many of EPT's core clients, such 
as clients within the retail sector, the Business Unit is now starting for the 
first time in several months to receive commissions to work on new sites from 
some of its developer and residential house builder clients. 
 
 
Recent new projects include: 
  *  Appointed to provide transport advice for a major residential led mixed use 
  development at Hucknall to the north of Nottingham including the potential to 
  extend the existing Nottingham tram system; 
  *  Selected by MACE Group to undertake environmental and geo-environmental 
  investigations at the New Barnfield Energy from Waste development in Hatfield, 
  Hertfordshire; and 
  *  Supporting the Department of Communities and Local Government (DCLG) to 
  undertake a review on the operation of hazardous substances consents and the 
  Control of Major Accidents Hazards Regulations in England, Scotland and Wales. 
  Part of this review will also look at the role of the planning system in dealing 
  with development around major hazard sites. 
 
 
 
Ireland: 
 
 
In Ireland, against a background of an overall continuing decline in the 
economy, the second half of the financial year is proving to be challenging for 
the Business Unit. The order book has declined during the period and the 
Republic of Ireland Engineering and Management Services operations have been 
restructured to align workload and resources. 
 
 
The Republic of Ireland Environmental business continues to trade relatively 
well with a large proportion of its work coming from the insurance sector. 
Operations in Northern Ireland are also holding up and WYG continues to win work 
from the public sector in particular. 
 
 
Recent new projects include: 
  *  Appointed by the Northern Ireland Prison Service on a new prison at Magilligan, 
  Co Londonderry, Northern Ireland in conjunction with WYG Management Services; 
  *  Appointed by Perkins & Will Architects for the new Desertcreat Training College 
  for the Police Service for Northern Ireland, Ambulance and Fire Services; and 
  *  Secured the 2009 contract for the Environmental Protection Agency's groundwater 
  monitoring project in the Republic of Ireland 
 
 
 
International: 
 
 
Trading conditions in certain international markets where the Group has a strong 
track record remain solid. The order book for WYG International is now at a 
record level of circa EUR111 million. The international public sector continues to 
provide strong opportunities across Eastern Europe, the Western Balkans and 
Africa in particular, while the European Commission remains the Group's single 
largest client. In line with the Group's strategy, WYG is building on its 
successful proven track record in existing countries and is also diversifying 
its geographies with new WYG legal entities being created in Abu Dhabi, South 
Africa and Kazakhstan. 
 
 
Recent new projects include: 
  *  Cyprus - project funded by the European Union to provide consultancy services to 
  create an open access information point which will bring the Turkish Cypriot 
  community closer to the EU; 
  *  Poland - appointed by DARR (Lower Silesian Agency for Regional Development) to 
  provide consultancy services and training to local government to improve project 
  management of environmental projects; and 
  *  Poland - appointed by the Lipno and Naklo authorities to provide consultancy 
  services for the construction of bypasses around the two conurbations. 
  Commissioned also by the Department of Road and Rail Services in Wroclaw to 
  provide consultancy services for the reconstruction of the road linking the 
  Zerniki Wroclawskie roundabout with the Wroclaw-Wschod motorway junction in 
  Krajkow. 
 
 
 
For more information, please contact: 
 
 
+--------------------------------------------------------+--------------------------------------------------------+ 
| White Young Green Plc                                  |                               Telephone: 0113 278 7111 | 
+--------------------------------------------------------+--------------------------------------------------------+ 
| Paul Hamer, Chief Executive Officer                    |                                                        | 
+--------------------------------------------------------+--------------------------------------------------------+ 
| David Wilton, Group Finance Director                   |                                                        | 
+--------------------------------------------------------+--------------------------------------------------------+ 
|                                                        |                                                        | 
+--------------------------------------------------------+--------------------------------------------------------+ 
| Buchanan Communications                                |                               Telephone: 020 7466 5000 | 
+--------------------------------------------------------+--------------------------------------------------------+ 
| Tim Anderson Or Rebecca Skye Dietrich                  |                                                        | 
+--------------------------------------------------------+--------------------------------------------------------+ 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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