RNS Number:2631Q
White Young Green PLC
29 September 2003
For Immediate Release 29 September 2003
WHITE YOUNG GREEN PLC
Preliminary results for the year ended 30 June 2003
White Young Green Plc, consultant to the built and natural environment,
announces its preliminary results for the year ended 30 June 2003.
Highlights
- 20% increase in turnover to #76.6m (2002: #64.0m)
- 15% increase in turnover attributable to in-house services
- 121/2% organic growth in the year
- 17% increase in adjusted profit before tax to #5.7m (2002: #4.9m)
- 14% increase in profit before tax to #5.0m (2002: #4.4m)
- 9% increase in adjusted earnings per share to 14.6p (2002: 13.4p)
- 5% increase in basic earnings per share to 12.0p (2002: 11.4p)
- 8% increase in dividend per share to 5.4p (2002: 5.0p)
- #3.2m reduction in net debt in six months
- #850k increase in PII cost absorbed
- 33% increase in order book to a record of #136m
- One acquisition in the year - Cuthbert Condron
Commenting on the results, Chairman Gareth Cooper, said:
"The breadth of skills and markets in which the Group operates and the trend
towards long term framework agreements reinforces the robustness of the Group's
performance."
For further information, please contact:
Richard Brayson, Chief Executive
WHITE YOUNG GREEN PLC Tel: 0113 278 7111
Lisa Baderoon / Rebecca Skye Dietrich
BUCHANAN COMMUNICATIONS Tel: 020 7466 5000
CHAIRMAN'S STATEMENT
I am delighted to be able to report that for the sixth year in succession, White
Young Green Plc ("WYG") has achieved record levels of profitability and earnings
per share for the year.
Profit before tax and goodwill amortisation has increased by 17% in the year to
#5.7m (2002: #4.9m) whilst profit before tax was 14% higher at #5.0m (2002:
#4.4m). This excellent result has been achieved despite cost pressures
associated with increased insurance premiums in the year of #850k and some
uncertainty in certain private sector markets. Such a strong performance again
demonstrates our ability to operate flexibly and profitably in challenging
economic conditions.
The breadth of skills and markets in which the Group operates, and the trend
towards long term framework agreements reinforces the robustness of the Group's
performance and further improves the quality of Group earnings.
The year has ended with our forward order book at its highest ever level at
#136m whilst cash generation in the second half of the year from improved
working capital control produced greater liquidity and reduced gearing
significantly.
In earlier years WYG's development had been equally balanced between organic and
acquisition led growth but in this period only one small acquisition, that of
Cuthbert Condron in Dublin, has been concluded. Consequently virtually all of
the growth in turnover has been organic.
RESULTS
Turnover for the year from existing operations increased by 18% to #75.7m. With
the contribution from the acquisition, total Group turnover for the year was
#76.6m (2002: #64.0m), an increase of 20%. WYG is increasingly appointed to the
lead role on projects and consequently payments to third parties increased
significantly in the year to #9.3m (2002: #5.5m). The turnover attributable to
in-house services after deducting these payments therefore increased by 15%.
Operating margins excluding payments to third parties and goodwill amortisation
were maintained at 9.8% confirming WYG's position as one of the most efficient
and profitable professional consultancies operating in the support services
sector.
Earnings per share before goodwill amortisation rose by 9% to 14.6p (2002:
13.4p) whilst basic earnings per share increased by 5% to 12.0p (2002: 11.4p).
In April 2003 we raised #1.7m through a placing recognising an increased demand
for our shares and this effectively reduced adjusted earnings per share growth
by 1.5%.
Strong working capital management, supported by the placing in April 2003, has
reduced gearing to 38% (2002: 50%). Consequently net debt has reduced by #3.2m
since December 2002 to #12.2m and interest cover has improved again to 7.7
times.
DIVIDEND
It is proposed that the final dividend be increased by 8% to 3.35p (2002: 3.1p)
per share making a total for the year of 5.4p (2002: 5.0p). The dividend
continues to be covered 2.7 times by earnings. The final dividend will be paid
on 9 December 2003 to shareholders on the register at 10 October 2003.
REVIEW
The range of services offered by WYG has been significantly extended over recent
years such that we are now able to offer clients throughout the UK and Ireland a
wide range of complementary skills to assist them in the planning, creation and
management of their assets across both the built and natural environment. We
have continued to focus on the current opportunities provided by the public
sector which now accounts for 61% of our turnover. Our strength is our diversity
and throughout the public sector we have grown our business significantly across
a wide variety of clients. This diversity provides us with flexibility and
resilience to short term external economic factors.
This approach has enabled us to secure a significant number of long term
framework contracts for the outsourcing of professional services that will
provide sustainable income streams for several years ahead. Our forward order
book has increased accordingly and we have ended the year with highest ever
workload. The order book at 30 June 2003 was #136m of which #58m and #36m will
be undertaken this year and next year respectively, representing 76% and 47% of
this year's turnover.
In Defence we have now been appointed on three long term contracts as Principal
Support Provider ("PSP") to Defence Estates. These contracts have an overall
construction value of #270m and last on average for seven years. Long term
property management agreements for the Home Office, Courts Service and Probation
Service have also significantly increased our activity in the law and order
sector and these will provide a growing income stream in the years ahead. In
addition, during the month of September, we secured six long term agreements
with the Home Office to provide project management, environmental and design
services to their Prison Estate. These will last for a period of five years.
Transportation and infrastructure work has now risen to represent 27% of our
turnover. Within transportation our Rail business has grown by 39% in the year
and having secured a major multi-functional framework agreement with Network
Rail it is now in an excellent position to further develop the range and scope
of services provided in support of the safety critical maintenance of the rail
network. The recent announcement from Central Government confirming its
intention to invest heavily in motorway and trunk road improvements has
generated three major contracts from the Highways Agency enhancing our growing
profile in this important sector of activity.
Environmental services have been strongly in demand and, as a consequence, 20%
organic growth has been experienced whilst our Town Planning business has again
contributed well. The opportunities created from the integrated service offer
of environmental, transportation, town planning and energy related skills are
significant and of great interest, particularly in the urban regeneration and
sustainable development markets. Town Planning skills are therefore
progressively being introduced throughout our office network.
We continue to be pleased with our progress in Ireland. The forward order book
remains very strong and the businesses acquired in recent years have been fully
integrated to provide an enhanced multi-skilled service offer to our Irish
clients. During the year organic growth of 19% was achieved throughout our
Irish business which now represents 17% of our overall activity. Margins remain
at a high level and the recent Government commitment to invest significantly in
water services in the Republic of Ireland should generate further opportunities
for WYG.
BUSINESS SUCCESS AND PEOPLE
The past year has again been a period when we have been required to respond to a
changing marketplace with a background of continued economic and political
uncertainty. The business has been faced with significant cost pressures,
particularly relating to insurance premiums and employment taxes, yet WYG has
again prospered. Record levels of profit have been achieved for the sixth year
running and in a service business this can only be delivered through a committed
and dedicated staff. I thank them once more for their outstanding achievement.
Our Chief Executive, Richard Brayson, has advised us of his intention to retire
on 31 December, 2003. I would like to take this opportunity to thank Richard
for his valued contribution and commitment to the successful growth of White
Young Green over the last six years. We all wish him well in his retirement.
I am very pleased to confirm that our Managing Director, John Purvis, will
succeed Richard as Chief Executive. John has been with the Group for over 13
years and has worked closely with Richard over that period. John's appointment
will ensure continuity of policy and direction.
The Board is being strengthened by the appointment of an executive director
whose responsibilities will focus on commercial management including a
significant role in future acquisitions. A further announcement on this
appointment will be made in the near future.
I am very confident that with this management team WYG will continue its
positive momentum in the years ahead.
OUTLOOK
Our strategy of being a multi-skilled business responding to a changing
marketplace without disproportionate dependencies on individual sectors or
clients has been sound and will continue. This has provided us with the
flexibility and resilience to maintain a positive and consistent momentum since
our formation in 1997. Turnover and profit before tax have increased by 237%
and 268% respectively despite the changing economic conditions and investment
patterns that have prevailed throughout that period.
Few acquisition opportunities arose during the second half of the year but
interesting situations are now emerging to the extent that our activity in this
important area of development can be resumed.
We expect that investment in transportation and education projects will continue
whilst new government initiatives on healthcare will create opportunities for
the skills offered by WYG.
WYG has again delivered excellent results in the face of tough market
conditions. We have a first rate management team with a broad base of skills
across the consultancy sector who have demonstrated a consistent ability to both
integrate acquisitions and achieve strong organic growth. We remain committed
to our strategy of reducing risk by developing a broadly-based business and as
we enter the new year with a record order book of #136m we look forward to the
future with confidence.
REVIEW OF OPERATIONS
WYG has completed another extremely successful year of consistent and profitable
growth. Almost all of this growth was achieved organically with only one small
acquisition being concluded at the beginning of the year. This organic profit
growth was also achieved against a challenging background of significantly
increased costs from unprecedented increases in insurance premium, rises in
employment tax and an uplift in property costs in both Belfast and London.
The business has therefore responded magnificently to the challenge of
generating real organic profit growth across both the UK and Ireland at a time
when market conditions have made acquisitions much more difficult to conclude
and private sector client investment has been relatively subdued in a number of
sectors.
Operational highlights in the year included the following:
* 121/2% organic turnover growth net of third party fees (2002: 10%).
* 24% increase in the volume of new business placed with WYG
* 33% increase in order book to #136m (2002: #102m).
* 70% of next year's anticipated workload already secured.
* 61% of total WYG turnover from the public sector (2002: 50%).
* 46% increase in the volume of public sector work undertaken in the year:
- Law & Order up 112% to #5.0m (2002: #2.4m)
- Transportation & Infrastructure up 52% to #21.1m (2002: #13.9m)
- Health & Education up 17% to #10.7m (2002: #9.1m)
- Defence up 9% to #7.5m (2002: #6.9m)
* Transport & Infrastructure established as the largest sector
contributor to WYG overall turnover at 27% (2002: 22%)
* 34% increase in the future fee value of long term framework and
professional outsourcing contracts secured by WYG to #79.7m (2002: #59.4m)
* New long term professional outsourcing contracts secured with the
following key clients:
- Ministry of Defence Central Business Unit PSP
- Kent County Council Multi-discipline Professional Services
- Home Office Civil Estate Property Management
- Hampshire County Council Professional Engineering Services
- Network Rail Multi-functional Framework Agreement
- Home Office Prison Service Multi-discipline Professional Services
* Appointed as Employers Agent by the Highways Agency on the following
major projects with a combined capital value of approximately #200m:
- M1-M6 Junction 19 improvements
- M40 Junction 15 improvements
- A45-A46 Tollbar junction improvements
All of these achievements can be set against the background of a business that
is flexible, resilient and responsive to changing market conditions with no
disproportionate client or sector dependency, a clear business philosophy based
on effective risk management and a corporate objective for future growth shared
by management and staff alike.
WYG SERVICES
WYG provides professional consultancy services to blue chip clients across all
key sectors of the UK and Irish economies, supporting them in the planning,
creation and operation of their built assets, the efficient and sustainable
utilisation of their natural assets and the development of management systems
and processes associated with those assets. This range of services from initial
planning through to eventual replacement embraces both their investment and
operational activities.
Although many of WYG's skills and services are utilised throughout an asset's
life cycle, others are specific to particular stages of the cycle.
During the planning stage of the asset or project WYG's town planning,
environmental, geotechnical, transportation and utility services skills are of
particular importance as they determine the viability and whole life cost
profile of any capital investment proposal. They also represent an opportunity
for early involvement in the procurement process.
During the creative, or construction, stage then the more traditional WYG
project management and multi-discipline design skills remain vital to the
success of that creative activity, irrespective of whether the procurement
process involves public or private sector funding. Also of increasing
importance during this stage of the process is sustainable design and a clear
awareness of the wider health and safety implications of design decisions.
Finally, during the operational, or maintenance, phase when the asset is
actually put to use, be it a building, piece of infrastructure or utility
supply, then WYG's maintenance, facilities consultancy, property management,
environmental management and occupational health and safety skills are in high
demand.
The availability of all of these skills within WYG's in-house resources enables
the business to engage with key clients across the full spectrum of their
activities and responsibilities. It facilitates continuous and constructive
dialogue with clients and provides significant opportunities outwith the normal
pattern of investment cycles.
WYG CORPORATE PHILOSOPHY
Underpinning WYG's consistent profit growth performance is a clear corporate
philosophy and business ethos that directly impacts the company's acquisition,
business development and recruitment policies. This philosophy is shared by the
management and staff and contributes significantly to the strength, stability
and resilience of the business.
* Integrated Business
WYG operates as an integrated business across all skill sets, offices and
business units. There is a single brand, common corporate objectives and an
ethos that recognises the primacy of overall Group performance. This ethos is
driven down through the business from Group Board level where the managing
directors of the various business units share collective responsibility for
overall Group policies and performance. This culture of integration spans
across the business development, professional development, training and
corporate development activities of the Group.
* Complementary Services
WYG's philosophy is to offer clients a full range of complementary services
appropriate to each stage of an assets life cycle as discussed in detail above.
As a consequence of this strategy a growing proportion of WYG's business is now
total project delivery utilising, where appropriate, supply chain partners for
architectural and cost management services. Clients therefore have the option
of appointing WYG either on the basis of a fully managed total delivery service
or from a basket of discrete skill sets appropriate to their needs. At the
present time approximately 50% of WYG's turnover emanates from the increasing
market for single source delivery. In addition the development of a wider range
of complementary services also significantly increases the cross-selling
potential of those services into the overall client base.
* Diverse Sector Penetration
WYG benefits significantly from the policy of maintaining a demonstrable
expertise in all key sectors of the UK economy. This provides the business with
its stability and resilience to changes in investment patterns across the
economy and between the public and private sectors. WYG therefore maintains a
balance between sector specialists and generalists whose technical skills are
transportable between a wide range of sector activity. This philosophy has been
of great benefit over recent years as it has enabled the business to take full
advantage of increased expenditure in the transportation, health and education
fields whilst limiting the impact of concurrent downward pressures in the
financial services, telecommunications and commercial development markets. This
flexibility and diversity is fundamental to WYG's ability to take advantage of
investment commitments from wherever they may emanate in a continually changing
market environment.
* Higher Value Services
It is part of WYG's philosophy to enhance the range of services available to
clients to include more strategic support to position WYG at the heart of
decision making within the client organisation. This is being achieved through
the gradual introduction of a wider range of strategic management services and
specialist technical skills all of which are fundamental to key decision making
processes. The development of these higher value mission critical skills has
enabled WYG to secure strategic advisor roles on long term investment programmes
during the course of the year for the Home Office, the Ministry of Defence,
National Care Standards and the Regional Development Agencies amongst others.
* Long Term Business Relationships
WYG is committed to developing long term strategic corporate relationships with
all key clients, key professional partners and construction contractors who are
all fundamental to the delivery of a quality product and service. These
relationships are being developed, nurtured and protected through direct
engagement at Board to Board level, the establishment of a managed interface
structure and collaboration commitment which spans across both organisations.
Developing these relationships establishes the framework on which long term
business can be developed including the outsourcing of professional services and
the establishment of long term collaborative agreements stretching over many
years. Typical outsourcing contracts secured during the past year have included
those for Kent County Council and the Royal Borough of Kingston upon Thames, in
addition to the property management remit for the Home Office Civil Estate
throughout the UK.
* Investing in People
WYG is a people business and therefore the WYG philosophy includes a commitment
to encourage all staff to reach their potential and to participate in the
evolution of policy, direction and ethos within the business. The latter is
facilitated through a regional interactive workshop programme through which the
Chief Executive and Group Managing Director engage each month with all of the
senior managers from a particular office or business unit to address personally
the Group's continuous improvement programme directly with those key
contributors. WYG's commitment to staff development and participation in the
wider sense can be measured through the commitment to achieve 'Investors in
People' across all offices. This programme has recently commenced with the
first two pilot offices achieving the Investors in People standard in early
September 2003.
* Managing Risk
The final important element of WYG's business philosophy is the effective
management of risk across all aspects of Group activity. As a consequence of
adopting a cautious and professional risk management strategy WYG has avoided
many of the problems encountered elsewhere over recent months. Underpinning
this strategy is the dual policy of not accepting a risk that the company is
unable to either manage or influence, or a risk that could have a
disproportionate financial impact on the business irrespective of who is
managing the risk. This policy will continue into the future.
WYG CORPORATE DEVELOPMENT
WYG's evolution from being essentially a consulting engineer engaged primarily
on capital projects to becoming a much more broadly based multi-skilled
consultancy has continued during the course of the year. As a consequence
traditional engineering design services now represent only 54% of WYG's overall
turnover despite having more than doubled in quantum terms over the last six
years. By contrast the newer, more strategic, specialist skills and management
services have increased in volume terms seven fold over the same period and now
represent the fastest growing element within WYG's overall skills portfolio.
This trend is expected to continue as the scope of strategic management services
to clients develops further in the years ahead.
It is, however, the diversity and breadth of WYG's exceptional sector
penetration which has provided the fuel and the opportunity for the evolution of
the skills balance over recent years. In that regard WYG operates in all key
sectors of the UK and Irish economies and is therefore well placed to take full
advantage of changes in investment patterns as and when they occur across those
economies.
During the course of the year only one relatively small acquisition was
concluded, being the purchase of Cuthbert Condron, a specialist building
services consultant based in Dublin, in August 2002. This acquisition enables
WYG to offer established clients in Ireland the full range of WYG design
services on multi-discipline projects.
New complementary specialist skills, developed organically during the course of
the year as a consequence of strategic appointments, include property
management, virtual reality graphics, sustainability management and corporate
benchmarking.
WYG's corporate development continues to be nurtured across all of the WYG
business units and skill sets each of which has contributed significantly to the
success enjoyed by the overall business during the course of the year.
WYG MANAGEMENT SERVICES
Management Services are a rapidly growing and increasingly important element of
WYG's service offer to clients. It is the provision of a strategic management
service, be it associated with project delivery, day to day operations or a one
off investment opportunity, that places WYG at the heart of business activity,
and into the boardroom, to engage directly with clients at a corporate level.
The volume of management services undertaken by WYG in the year has increased
organically by 25% and now represents 12% of the Group's turnover. This is
scheduled to increase further in the current year as a consequence of the
following important appointments secured over recent months.
* A seven year appointment as multi-discipline project manager and client
advisor to Defence Estates across the entire Central Business Unit property
management remit including the forthcoming Regional Prime Contract and all other
discrete capital and maintenance contracts across the North of England, Wales
and the Midlands. This is now the third such appointment secured by WYG over
the last two years securing the Group's position as one of the principal
providers of professional services to Government across the defence estate.
* A five year property management appointment to the Home Office civil estate
providing a national 24 hour asset management service across an estate
comprising over 2000 properties.
* A five year appointment to provide project management services to the Home
Office Prison Service covering all establishments in the London and Eastern
regions.
WYG IRELAND
WYG has continued to prosper in Ireland over the past year with organic growth
reaching 19% and operating margins being delivered in excess of the Group
average. In overall terms Ireland now contributes 17% of turnover with a 10%
contribution from the Republic of Ireland and the balance from Northern Ireland.
Within the Republic 34% of WYG turnover is derived from the legislation driven
environmental sector with the balance being dominated by the extremely buoyant
water services industry, food retailing and private sector residential
development in the Dublin area.
Although rates of GDP growth in the Irish economy have fallen from the
unsustainable levels experienced during the Celtic Tiger years to a more
reasonable 3-4% forecast for 2004, this remains higher than equivalent figures
for both the UK and the EU as a whole. The prospects within WYG's key markets
therefore remain extremely strong and the Irish business looks forward to a
further year of profit growth in 2004. In particular the recent announcement by
the Minister for the Environment, Heritage and Local Government of a three year
#3.8 billion water and sewerage infrastructure investment programme should have
direct benefits for WYG.
Recent successes underpinning that confidence include the following:
* West Meath County Council - Mullingar Main Drainage
* Adare to Patrickswell Sewerage Scheme - Rising Main
* Roscommon County Council - Regional Water Supply Scheme
* Limerick County Council Mungret Distributor Road
* University of Limerick - Medical Nursing School
* DoE - Western River District Basin Management Plan
As a consequence of these and other previous appointments the order book in
Ireland is currently 44% higher than the Group average when expressed as a
percentage of annual turnover.
WYG ENVIRONMENTAL
WYG Environmental has now enjoyed two successive years of over 15% organic
growth with environmental skills now representing just under 20% of the Group's
turnover. This is also one of the most profitable skill sets within WYG's
portfolio with double digit operating margins being maintained both in the UK
and in Ireland.
WYG's environmental services now extend across the full range of environmental
sciences including ground, water and air contamination, ecology, waste
management, water resources and geotechnics in addition to urban design,
environmental management and occupational health and safety.
During the course of the year WYG's growing reputation within the environmental
sector has been rewarded with a number of new appointments for a wide range of
clients including Regional Development Agencies, national housebuilders,
industrialists, the Highways Agency, Central Government and local authorities in
addition to a long term framework agreement with Secondsite Property Holdings
(formerly British Gas).
WYG PLANNING
WYG's Town Planning business celebrated its second full year of operation with
the opening of a new office in Leeds to supplement existing operations on
London, Bristol and Manchester. WYG is now able to provide clients with town
planning advice throughout England and Wales from these four centres with
further expansion and diversification planned for future years.
Of particular note in the year has been the number of large scale opportunities
to arise which have called upon WYG's full range of integrated and fully
co-ordinated pre-development skills, including town planning, environmental,
geotechnical, transportation, urban design and utility infrastructure support
services. The availability of all of these complementary skills from in-house
resources has been material in enabling WYG to secure large scale planning and
development studies such as those at Barrow Port and at Oakgrove Millennium
Community in Milton Keynes over recent months.
Although Town Planning currently represents only 4% of WYG's overall turnover,
WYG Planning is nevertheless already one of the top 20 consultancies by volume
in the relatively fragmented UK planning market. This rating is scheduled to
improve further as the business expands over the next few years to capture wider
markets across the full spectrum of retail, housing, industrial, commercial and
leisure activity.
WYG DESIGN SERVICES
WYG's traditional engineering design business has had a good year growing
organically by approximately 10% primarily as a consequence of a significant
increase in highway and transportation work and further growth in property
related business in the public sector i.e. health, education, defence and law
and order.
Transportation and infrastructure work has grown in the year by a massive 52% to
now represent 27% of WYG's turnover. Approximately two thirds of this increase
has been associated with the highway network where WYG's growing profile and
reputation has enabled the company to benefit significantly from recent
Government announcements to commit to further spending on the motorway and trunk
road improvement programme. In that regard WYG have recently been appointed as
Employers Agent by the Highways Agency on the following three new projects to be
designed and constructed over the next four years:
* M1-M6 Junction 19
* M40 Junction 15
* A45-A46 Tollbar Junction
The total capital value of these projects is in the order of #200m.
Also of significance to WYG is the ongoing commitment to investment in the
health and education markets utilising a wide range of public and private sector
financing and procurement arrangements including PFI, PPP, LIFT and Procure 21
amongst others. WYG's skills continue to be in high demand in these sectors
where the company can demonstrate a significant track record and cutting edge
expertise.
Defence and law and order are also buoyant sectors in which WYG can now claim to
be effective market leaders. Although Defence has grown modestly in the year by
9% it is expected to expand further in future years as a consequence of the
Central Business Unit appointment referred to above under Management Services.
Law and Order on the other hand has grown by a significant 112% in the year
following a series of long term appointments with the Courts Service, Probation
Service and Home Office civil estate. More recently WYG has also been appointed
to six long term framework agreements with the Home Office Prison Service to
further strengthen WYG's position in this important market.
Food retailing continues to be an important contributor to the Group's ongoing
success and, in particular, the relationship with Tesco, both in the UK and in
Ireland, underpins that particular market for WYG. The appointment of WYG to
the Tesco 'Centre of Excellence' in 2002 confirms that this long standing and
mutually beneficial relationship will continue for some time to come.
WYG RAIL
WYG's sector focused rail business unit has had another successful year growing
in volume terms by an impressive 39% within an extremely competitive and rapidly
evolving market environment. This success was further underlined by WYG's
appointment during the course of the year to a five year multi-functional
framework contract with Network Rail. This exercise significantly reduced the
number of suppliers to Network Rail thereby increasing the likely long term
future workload for successful companies including WYG.
WYG's corporate development strategy for Rail of concentrating on the provision
of professional services within the safety critical repair and maintenance
sector, rather than major new development schemes, will continue for the
foreseeable future. This strategy has assisted WYG to effectively manage change
in the industry over recent years and should prove equally as effective as the
industry continues to evolve.
THE FUTURE
WYG approaches the new financial year in confident mood having delivered a sixth
successive year of consistent profit growth against a background of strong
organic corporate development and real optimism for the immediate future. That
optimism is backed up by an order book at record levels, a discernible momentum
in new business activity in key markets and a demonstrable track record of
successful service delivery into those markets.
In addition the diversity of sectors to which WYG supplies services provides the
business with significant flexibility to adjust to changes in investment
patterns across the economy and therefore delivers both stability and
opportunity.
The evolutionary development of WYG is therefore well on track providing the
company with the resilience, flexibility and opportunity it requires to enable
it to maximise its potential.
Consolidated profit and loss account
For the year ended 30 June 2003
2003 2002
Note #'000 #'000
Turnover
- Continuing operations 75,743 64,022
- Acquisitions 841 -
76,584 64,022
Operating expenses (70,766) (58,859)
Operating profit
- Continuing operations 6,483 5,714
- Acquisitions 102 -
6,585 5,714
Goodwill amortisation (767) (551)
Profit before interest 5,818 5,163
Net interest payable (860) (807)
Profit before tax 4,958 4,356
Tax 2 (1,431) (1,272)
Profit after tax 3,527 3,084
Dividends 3 (1,647) (1,413)
Retained profit for the year 1,880 1,671
Earnings per share 4
Basic 12.0p 11.4p
Diluted 11.7p 11.0p
Adjusted earnings per share 4
Basic 14.6p 13.4p
Diluted 14.3p 13.0p
Dividend per share 3 5.4p 5.0p
Consolidated balance sheet
As at 30 June 2003
2003 2002
#'000 #'000
Fixed assets
Intangible assets 15,907 13,472
Tangible fixed assets 6,388 5,436
Investments 61 87
22,356 18,995
Current assets
Work in progress 12,221 11,630
Debtors 23,472 19,176
Cash at bank 1,775 1,644
37,468 32,450
Creditors: amounts falling due within one year (17,403) (18,388)
Net current assets 20,065 14,062
Total assets less current liabilities 42,421 33,057
Creditors: amounts falling due after more than one year (9,791) (6,352)
Net assets 32,630 26,705
Capital and reserves
Called up equity share capital 1,539 1,400
Share premium account 16,556 13,022
Shares to be issued 775 1,275
Profit and loss account 13,760 11,008
Equity shareholders' funds (note 5) 32,630 26,705
Consolidated cash flow statement
For the year ended 30 June 2003
2003 2003 2002 2002
#'000 #'000 #'000 #'000
Net cash inflow from operating activities (note 6) 8,064 2,933
Returns on investment and servicing of finance
Interest received 1 9
Interest paid (559) (479)
Interest element of finance lease rentals (290) (296)
(848) (766)
Tax paid (1,716) (1,560)
Capital expenditure and financial investment
Purchases of tangible fixed assets (825) (340)
Sale of tangible fixed assets 347 248
Options exercised (QUEST shares) 28 330
Purchase of own shares for EBT (118) -
(568) 238
Acquisitions
Purchase of subsidiary undertakings (1,111) (1,424)
(Overdraft) cash balances acquired with subsidiaries (39) 893
(1,150) (531)
Equity dividends paid (1,481) (1,216)
Net cash inflow (outflow) before financing 2,301 (902)
Financing
Issue of ordinary shares 1,679 62
Bank loan received 4,000 -
Bank loan repayments (749) (521)
Loan note repayments (429) (54)
Capital element of finance lease rentals and
hire purchase contracts (2,452) (2,150)
2,049 (2,663)
Increase (decrease) in cash during the year (note 7) 4,350 (3,565)
1. Financial information
The financial information set out in this preliminary announcement does not
constitute statutory accounts within the meaning of s240 of the Companies Act
1985. Statutory accounts for the year ended 30 June 2003 will be dispatched to
shareholders by 23 October 2003 for approval at the Annual General Meeting to be
held on 4 December 2003. The statutory accounts contain an unqualified audit
report and will be delivered to the Registrar of Companies in accordance with
s242 of the Companies Act 1985.
2. Tax
2003 2002
#'000 #'000
UK corporation tax at 30% (2002: 30%) 1,304 1,173
Overseas tax 214 174
Adjustments in respect of prior years (97) 11
Total current tax 1,421 1,358
Deferred tax 10 (86)
Total tax 1,431 1,272
3. Dividends
2003 2002
#'000 #'000
Interim paid 2.05p (2002: 1.9p) per share 603 535
Final proposed 3.35p (2002: 3.1p) per share 1,044 878
1,647 1,413
4. Earnings per share
The calculations of basic earnings per share are based on the average number of
shares in issue during the year ranking for dividend of 29,358,365 (2002:
27,043,070). Diluted earnings per share is calculated after the effect of
dilutive share options of 184,476 shares (2002: 152,275) and of shares to be
issued in respect of acquisitions of 508,197 (2002: 758,928).
Earnings per share is calculated as follows
2003 2002
#'000 #'000
Profit after tax 3,527 3,084
Earnings per share
Basic 12.0p 11.4p
Diluted 11.7p 11.0p
Adjusted earnings per share is also presented in order to give an indication of
the underlying performance of the Group and is calculated as follows:
2003 2002
#'000 #'000
Profit after tax 3,527 3,084
Goodwill amortisation 767 551
4,294 3,635
Adjusted earnings per share
Basic 14.6p 13.4p
Diluted 14.3p 13.0p
5. Reconciliation of movements in group shareholders' funds
2003 2002
#'000 #'000
Profit after tax 3,527 3,084
Dividends (1,647) (1,413)
1,880 1,671
New share capital issued 3,603 4,163
Shares to be issued (500) -
Shares issued to the QUEST 70 963
Currency translation differences 910 162
QUEST loss (38) (633)
Movement in equity shareholders' funds during the year 5,925 6,326
Equity shareholders' funds at beginning of year 26,705 20,379
Equity shareholders' funds at end of year 32,630 26,705
6. Reconciliation of operating profit to net cash inflow from operating activities
2003 2002
#'000 #'000
Operating profit 5,818 5,163
Depreciation 2,362 2,083
Loss on sale of fixed assets 137 74
Amortisation of intangible assets 767 551
Amortisation of investment 140 24
Increase in work in progress (578) (2,017)
Increase in debtors (3,956) (1,516)
Increase (decrease) in creditors 3,374 (1,429)
Net cash inflow from operating activities 8,064 2,933
7. Reconciliation of net cash flow to movement in net debt
2003 2002
#'000 #'000
Increase (decrease) in cash during the year 4,350 (3,565)
Cash (inflow) outflow from (increase) decrease in debt and lease (370) 2,725
financing
Change in net debt resulting from cash flows 3,980 (840)
Debt and finance leases assumed on acquisitions (95) (433)
New finance leases (2,872) (2,289)
New loan notes - (483)
Movement in net debt during the year 1,013 (4,045)
Net debt at beginning of year (13,252) (9,207)
Net debt at end of year (12,239) (13,252)
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR LFMRTMMTTBPJ