TIDMWYG
RNS Number : 2078H
WYG Plc
06 June 2017
6 June 2017
WYG plc
("WYG" or "Company")
Final Results
WYG plc, the global project management and technical
consultancy, announces its audited final results for the year ended
31 March 2017, highlights of which are as follows:
Double digit revenue growth with ongoing improvement in
profitability
Financial overview:
-- Revenue* up 14% to GBP151.8m (2016: GBP133.5m)
o Second half revenues up 10% to GBP78.3m (H2 2016 GBP70.9m)
-- Adjusted operating profit** up 22% to GBP8.8m (2016: GBP7.2m)
o Operating margins improved to 5.8% (2016: 5.4%)
-- Adjusted profit before tax** up 17% to GBP8.2m (2016: GBP7.0m)
-- Profit before tax GBP1.6m (2016: GBP2.2m)
-- Adjusted diluted earnings per share** up 21% to 11.9p (2016: 9.8p)
-- Earnings per share 3.3p (2016: 4.0p)
-- Proposed final dividend up 20% to 1.2p (2016: 1.0p), giving a
total dividend for the year up 20% to 1.8p (2016: 1.5p)
-- Net debt as at 31 March 2017 GBP2.5m (31 March 2016: net cash
GBP0.2m); significantly improved operating cash inflow before
investments
-- Order book stable at GBP145m as at 31 March 2017 (31 March
2016: GBP143m - after Polish adjustments):
o UK order book up 4% to GBP82m (2016: GBP79m) reflecting
continuing strength of infrastructure and planning markets
o International order book maintained at GBP63m (2016: GBP64m
(like for like))
-- Order book will be boosted by post year-end wins of c.GBP50m announced on 2 June 2017
-- Group exposure to defined pension liabilities closed out,
with return of GBP0.5m net of tax surplus to WYG
* Including revenue from Joint Ventures
** Before separately disclosed items
Operational overview:
-- 12% increase in UK revenue to GBP107.6m (2016: GBP96.3m)
reflecting strong performance across almost all services lines,
despite project delays in the fourth quarter
-- 80% increase in Middle East & North Africa including
Turkey (MENA) revenues to GBP23.8m (2016: GBP13.2m) as EU funded
projects come through strongly
-- 15% reduction in revenues in Europe, Africa & Asia (EAA)
reflected the results in our Polish operation, partially offset by
growth in Africa and Rest of World
-- Continued drive to improve efficiency, enhance resilience and
improve agility across the business:
o Cost reduction initiatives in our UK business re-invested to
enhance delivery without reducing capacity to deliver on our growth
opportunities
o Restructured Polish operation to focus on technical and
socio-economic services, which are now performing in line with
expectations; delivering annualised cost savings of GBP1.0m
o Successfully broadened MENA's reach beyond Turkey, including
EUR3.6m National Social Security Fund project in Lebanon
o Senior operational management appointed to lead divisions of
new organizational structure:
-- Jeanne 'JC' Townend as Head of Consulting Services
-- Jesper Damgaard as Head of International Development
Current Trading & Outlook:
-- Trading in the current financial year is in line with the
Board's expectations, with good revenue growth coming though in the
UK
-- Post period-end framework and project wins include:
o Central and Southern regions on UK MoD's revised PSP framework
for DIO,
o a place on three lots of the delayed Crown Commercial
Services' two year GBP2.9bn consultancy framework
o CRIDF 2 (climate adaption project in Southern Africa) worth
more than GBP5m,
which together are expected to deliver GBP15 million of revenue
in each of the next three years
-- Order book for the current financial year, augmented by post
period-end awards, gives a strong basis for current year growth
expectations
-- The current UK General Election process has temporarily delayed some project awards
-- Appointment of Jeremy Beeton to succeed Mike McTighe as Chairman with effect from AGM
-- Douglas McCormick appointed to succeed Paul Hamer as Chief
Executive Officer with effect from 12 June 2017
Paul Hamer, Chief Executive Officer of WYG plc, commented:
"WYG has delivered a 14% increase in revenue, a 22% increase in
adjusted operating profit and a marked improvement in operating
cash generation - although a number of project delays and deferrals
in the final quarter meant we did not quite meet the expectations
we set ourselves at the beginning of the year.
"Despite a temporary curtailment in the process of formalising
some contractual commitments as a result of the UK General
Election, we have started the current year well having already won
a significant contract in Africa and places on two major UK
frameworks. The opportunities we are seeing in our core consultancy
services and international development markets, combined with our
initiatives to drive efficiency and resilience across the Group,
leave us in a strong position from which to deliver good growth in
the current year."
Mike McTighe, Chairman, WYG plc, said:
"As announced separately today, Douglas McCormick has been
appointed as Chief Executive Officer to succeed Paul Hamer who is
taking up the post of Chief Executive at Sir Robert McAlpine
Limited. We thank Paul for his fantastic service over the past nine
years during which time he has led the Group's return to growth and
profitability. He leaves WYG with a strong new leadership team,
improved governance and culture, a robust order book and a healthy
pipeline of major projects with long-term structural funds and
institutions with which we have strong relationships.
"We welcome Douglas McCormick whose 30 years' experience in the
construction industry, most recently as Chief Executive Officer of
Sweett Group plc, provides the Company with strong leadership in
the next stage of its development as it makes the most of the
wealth of opportunities presented by its chosen markets."
This announcement contains inside information for the purposes
of
Article 7 of Regulation (EU) 596/2014.
Contacts:
WYG plc Tel: 0113
Paul Hamer, Chief Executive Officer 278 7111
Iain Clarkson, Chief Financial Officer
MHP Communications Tel: 020
Katie Hunt / Ollie Hoare 3128 8100
N+1 Singer Tel: 020
Sandy Fraser / Nick Owen / James White 7496 3000
WH Ireland Limited Tel: 020
Tim Feather / Ed Allsopp 7220 1666
Chairman's statement
Introduction
WYG has delivered a strong performance overall with a 14%
increase in revenue, a 17% increase in adjusted profit before
taxation and an improvement in operating cash inflow in the year
meeting management's revised expectations at the time of our
trading statement on 23 March 2017.
This significant growth and improvement in both profitability
and cash generation was delivered despite project deferrals and
delays in the mobilisation of new awards, leading to a weaker than
anticipated profit performance in the fourth quarter, demonstrating
the breadth and resilience of the Group.
This marks the first year in which WYG has delivered double
digit revenue growth since its refinancing in 2011. WYG today is a
fundamentally different organisation: it is a growing and resilient
business generating quality revenues from its core strengths in
front-end consultancy and international development. We have
committed funding, talented new operational leadership, and a
healthy pipeline of major projects with long-term structural funds
and institutions with which we have strong relationships. We expect
the organic growth delivered this year to continue and we look
forward with confidence to the next chapter in WYG's
development.
Strategy
Our strategy is to grow by developing and serving the markets
for our consultancy and international development expertise through
an appropriate blend of organic investment and selective
acquisitions, whilst recognising the risks and opportunities
presented by a dynamic global market and political environment.
We have recently finalised a new strategic growth plan for the
Group which aims to consolidate our position as a trusted adviser
to our clients whilst ensuring the business has an efficient, agile
and resilient structure. We are already underway with a number of
initiatives:
-- Improving the Group's agility by putting in a new structure
that positions WYG to generate and rapidly respond to the most
attractive opportunities presented by our clients' needs as they
navigate the current uncertain and dynamic global market and
political environment
-- Driving efficiencies by rationalising our office portfolio,
harnessing technology to improve the quality of delivery, and
reducing costs and headcount in certain areas, whilst retaining
capacity to deliver on our growth opportunities
-- Enhancing the resilience of our business by deepening and
diversifying client relationships, being focussed and selective in
our investments and prudently exiting from lower return activities,
such as HR consulting in Poland, whilst also broadening the reach
of our MENA business beyond Turkey.
A key element of this plan is bringing together those parts of
our business, both UK and international, which operate in related
technical services fields to create one Consultancy Services
business stream, headed up by newly appointed Jeanne 'JC' Townend.
JC is an American-born growth and leadership strategy expert who
has brought 25 years' international experience managing major
consultancies to the new role.
By engaging with clients at the onset of a project, often in the
earliest stages of feasibility studies, our Consultancy Services
business is ideally positioned to advise clients on how to create
value from their investments and assets. We are then well placed to
advise clients how to protect the value in those assets and to
manage risks through the full life-cycle of a project.
The other principal business stream is our International
Development business, based around our unique skills and experience
of the management and delivery of complex programmes in challenging
environments. The International Development business is led by
Jesper Damgaard, who was recently appointed and brings over 20
years of international and consulting experience to WYG. Jesper, a
Danish national, has worked across Europe, UAE, Middle East and
Asia Pacific for his entire professional life, and will make a
significant contribution to our emerging commercial strategy and
help us to build a more integrated and valuable business.
The strategic growth plan harnesses the specialist skills from
across our business, bringing the improved focus required to
address the major challenges of climate adaptation, energy
planning, major infrastructure projects, water management, mass
migration and the UK housing shortfall.
Results
Revenue (including our share of Joint Venture revenues) for the
full year was up 14% to GBP151.8m (2016: GBP133.5m). Revenue in the
second half was up 7% to GBP78.3m compared with the first half of
2017 (GBP73.5m). The slower growth in the second half reflected the
previously reported delays and deferrals that impacted us in the
final quarter.
Adjusted operating profit increased by 22% to GBP8.8m (2016:
GBP7.2m) representing an increased adjusted operating margin of
5.8% (2016: 5.4%). This was constrained by the cost of increasing
capacity in the final months in anticipation of work that did not
materialise. Adjusted profit before tax was up 17% to GBP8.2m
(2016: GBP7.0m), reflecting the very strong improvement in
profitability year on year. On a statutory basis, the Group made a
profit before tax of GBP1.6m (2016: GBP2.2m) after GBP4.0m of costs
associated with restructuring the business in line with the
strategic growth plan and the closure of certain Polish operations.
Diluted earnings per share adjusted for separately disclosed items
were 11.9p (2016: 9.8p). On a statutory basis, earnings per share
were 3.3p (2016: 4.0p).
As at 31 March 2017, the Group's order book stood at GBP145m (31
March 2016: GBP150m; GBP143m on a like for like basis). Since the
year end, recent project wins totalling c.GBP50m have been
confirmed, significantly boosting the Group's order book meaning
that despite the significant increase in turnover last year, we
have continued to replenish the order book at a steady rate. As a
result, the order book for work to be undertaken in the current
year gives a strong basis for current year growth expectations.
The Group closed the year with net debt at 31 March 2017 of
GBP2.5m (31 March 2016: net cash of GBP0.2m) after payment of
GBP2.3m in deferred consideration for acquisitions. This reflects a
significant improvement in operating cash generation with an inflow
before legacy costs and restructuring costs, and investments of
GBP5.0m (2016: outflow GBP0.6m).
Bank facility
Our GBP25m committed multi-currency revolving credit facility
with HSBC offers the Group broad flexibility between debt and
bonding requirements. It runs until June 2020 and ensures we have
the resources with which to fund our planned growth.
Dividend
In March 2017, we paid an interim dividend of 0.6p. Subject to
the approval of shareholders at the AGM, a dividend of 1.2p will be
paid on 3 October 2017 to ordinary shareholders on the register on
8 September 2017, bringing the overall dividend for the year to
1.8p per ordinary share (2016: 1.5p), representing a 20% increase
and reflecting our strong adjusted profit growth and positive
outlook.
Board changes
We are delighted to announce today the appointment of Douglas
McCormick as Chief Executive Officer. His appointment will take
effect from 12 June 2017, on which date Paul Hamer will step down
from the Board to take up a prestigious new role at Sir Robert
McAlpine.
Douglas has over 30 years' experience in the construction
industry, and was until recently Chief Executive Officer of Sweett
Group plc, managing approximately GBP90m of revenue and over 1,500
staff across 18 countries. During his 18 months in the role Douglas
established a period of improved stability, creating significant
value for shareholders. Previously, Douglas was Group Managing
Director, Rail, Atkins (UK), managing more than GBP200m of revenues
and over 1,700 staff across the UK, India and China.
Douglas is a Fellow of the Royal Institution of Chartered
Surveyors and holds an MSc in Construction Management and a BSc in
Quantity Surveying. In addition, he was until recently a
Commissioner for the UK Commission for Employment and Skills, and
is a non-executive Director of the Institute for Collaborative
Working.
Paul joined the Group in July 2008 and was appointed Chief
Executive Officer in March 2009 to oversee the transformation of
WYG. He led the business through two major financial restructurings
in 2009/10 and 2011, returning the Group to profitability, and a
period of significant growth. Paul has helped to create a client
focussed organisation with a new operational structure and strong
business leadership team, designed to deliver the five-year growth
strategy recently endorsed by the Board.
The Board would like to pay tribute to the work that Paul has
done at WYG and to thank him for his fantastic service over the
past nine years. His leadership has been key to the successful
turnaround of the business and its return to growth and
profitability; we wish him well in his new role at Sir Robert
McAlpine.
Also, as announced on 30 January 2017, I am pleased to confirm
that Jeremy Beeton, currently the Senior Independent Non-executive
Director, will succeed me as Chairman with effect from the
conclusion of the next AGM.
This change marks the fulfilment of the long-term succession
planning process on which we embarked in 2015 in anticipation of
the fact that I would shortly be coming to the end of the maximum
nine year period during which I could be considered an independent
non-executive director.
Jeremy joined the board as a non-executive Director in October
2015. He has more than 40 years' international business experience
including in government, corporate, project management,
construction and facilities management.
The UK's EU Referendum
As an organisation that contracts directly with the EU, we are
mindful of the challenges presented by the outcome of the UK's EU
Referendum and the ongoing uncertainty surrounding its eventual
implementation. To date we have seen no material impact on
financial performance from the decision. Our international business
model is robust and agile and our UK and international subsidiaries
have continued to win work with the major international finance
institutions and other clients. In the run-up to the EU Referendum
we undertook a review of the potential impact that a vote to leave
the EU would have on the business and we have taken steps to ensure
that our model remains appropriate and resilient. Nevertheless, we
continue to keep the issue under very close scrutiny.
Risks and Uncertainties
In addition to Brexit, there are other geo-political
uncertainties that could affect WYG's performance and, as we saw
this year, programme deferrals on existing contracts and delays in
the confirmation of new contracts present an ongoing risk to WYG's
expectations of its performance.
We regularly review our approach to risk management and we take
steps to ensure that we attract, develop and retain the right
people with the appropriate skills to identify, collate and manage
business risk. We regularly review risks to ensure that emerging
risks are captured, appropriate mitigations are in place and that
we learn from our experiences around the Group.
People
The positive results set out in this report are a testament to
the skills and hard work of our employees, including all those new
staff who have joined WYG in the past 12 months. On behalf of the
Board I would like to thank them all for their dedication and
contribution.
Current trading and outlook
Trading in the current financial year is in line with the
Board's expectations, with good revenue growth coming though in the
UK where we have already successfully secured two major new
framework contracts with UK government agencies.
We continue to believe that our UK business will benefit from
the opportunities flowing from our public and private sector
clients as a result of ongoing economic growth, a dynamic global
and political backdrop and the agility we offer, enabling us to win
business from larger competitors. UK government and infrastructure
spending, which are the main drivers of our front-end planning and
consultancy business, have remained resilient albeit with the
process of formalising some contractual commitments temporarily
curtailed by the UK General Election. However, we were encouraged
by the proposals contained in the Autumn Statement and the Spring
Budget and all the UK's major political parties appear committed to
continued increases in the level of infrastructure spending.
Internationally, the scale of the opportunity in all our target
markets continues to grow. We are well established with market
leading local businesses in Poland, Croatia and Turkey, each of
which can access the pipeline of opportunities as EU funds continue
to be deployed under the current multi-annual financial framework.
The outlook for our international development business in Africa
and Asia also remains very positive and, after a period of intense
bidding activity, we have recently achieved some very significant
wins. With further wins expected, we envisage sustained growth
across the region.
Overall, the opportunities we are seeing in our core consultancy
services and international development markets, combined with our
initiatives to drive efficiency and resilience across the Group and
a good level of order book cover, leave us in a strong position
from which to deliver continued growth in the current year.
Business performance
Introduction
Last year's strong growth in order book has been successfully
converted into much improved revenue, especially in the UK and
MENA. Our UK business produced double digit growth in revenue for
the third year in a row. However, margins slipped chiefly as a
result of having geared up to deliver several major programmes of
work that were expected to commence in the last four months of the
year but were then delayed. Frustratingly, it was our higher margin
service lines that saw the greatest incidence of project delays.
Although the business acted quickly to reduce costs and overheads,
and defer some planned investments in the final quarter, it proved
impossible to make up the lost ground by the year end.
In addition to the strong revenue growth in the year, the UK was
very successful in generating new orders which underpin
expectations for the current financial year. The quality of, and
client satisfaction with our work, has also been recognised with a
number of awards and nominations including, for example, National
Grid's Most Innovative Property Project.
Competition for suitably qualified staff remains intense, so our
timely investment to develop a resourcing team to attract skilled
employees has been repaid. More than 80% of all new starters are
now recruited by our own team, meaning that we pay significantly
less in external recruitment fees.
WYG operates through four sub-regional businesses in EAA:
Central and Eastern Europe (CEE), South East Europe (SEE), Africa,
Asia and Rest of World (ARM). In CEE, project delays and weaker
performance in the HR Consulting business which offers job search
facilities, placement and counselling facilities to the unemployed,
has meant we have undertaken further restructuring of the Polish
business, discontinuing two lower margin/return lines of business
and refocusing on our core strengths of technical and
socio-economic services.
SEE and ARM performed strongly. Overall, therefore our EAA
Region generated an increase in operating profit despite slightly
reduced revenues. Major long-term programmes such as the
Infrastructure Projects Facility in the Western Balkans are the
mainstay of the business and, shortly after the year end, we
received confirmation that we had been appointed to a number of
large, long-term programmes in Africa. These programmes, which are
complemented by our Monitoring & Evaluation and Public
Financial Management services (ensuring that international donors
get value for money), mean that the medium to long-term outlook for
our international development business remains very positive.
In MENA, we saw the positive impact of good operational gearing
such that an 80% increase in turnover from GBP13.2m to GBP23.8m led
to an increase of approximately 10 times in operating profit to
GBP3.0m (2016: GBP0.3m).
Just after the year end, we were especially pleased to receive
confirmation that we have won a place on the Crown Commercial
Services two year GBP2.9bn consultancy framework under which UK
government customers can access project management, design and
advisory services to support the delivery of their property and
construction projects. The framework is initially for two years
though this can be extended in one year increments up to a maximum
of four years. We estimate that the framework could be worth up to
GBP3m per annum over the duration of the framework.
We were also pleased to receive confirmation that the Defence
Infrastructure Organisation (DIO) has awarded us the contract to be
the DIO's preferred Principal Support Provider for new projects in
both the Central and Southern regions of the UK. DIO is an arm of
the UK Ministry of Defence (MoD) and plays a vital role in
supporting our Armed Forces by building, maintaining and servicing
the UK's defence infrastructure. DIO is primarily responsible for
implementing the estate optimisation plan, the sale of sites
associated with that plan and, more broadly, investing in the
estate to make it more efficient and better able to support the
UK's military capability. Recently DIO decided to move to a
Regional Commissioning Model (RCM). The amendment to our existing
PSP framework is initially for one year but can be extended in one
year increments up to a maximum of three years. We estimate that
our expanded Delivery Partner role under the new model could double
our existing GBP12m per annum revenue in each of the next three
years.
Operational review
Operationally, the Group was structured and reported throughout
the financial year on a regional basis with the three regions
being:
-- UK
-- Europe (which includes CIS and Western Balkans), Africa & Asia (EAA)
-- MENA (Middle East & North Africa including Turkey).
Going forward, we will report in line with our new
organisational structure:
-- Consultancy Services - this will include all our UK
activities and those parts of our international business which
operate in similar technical services fields and comparable markets
i.e. Poland and Bulgaria
-- International Development
UK (71% of Group revenue) - strong performance impacted only by
Q4 slowdown
The UK region generated a 12% increase in revenue to GBP107.6m
(2016: GBP96.3m). However, operating profit before separately
disclosed items at GBP9.1m was 12% behind the previous year (2016:
GBP10.3m) due mainly to the fact that we had invested to deliver
several major programmes of work that were expected to commence in
the last four months of the year but were then delayed. We acted
quickly to review and reduce costs and overheads, and deferred some
further planned investments in the final quarter. Unfortunately, it
proved impossible to make up the lost ground by the year end,
without detrimentally impacting our ability to resource growth in
2018.
The continued underlying growth in our UK region has been
achieved with strong organic performances across almost all of our
service lines, plus the full year impact of last year's strategic
acquisitions. Among other notable framework and project wins:
-- We have been appointed to frameworks to provide
multi-disciplinary services to Transport for Greater Manchester,
Transport for London and a number of other Combined and Local
Authorities meaning that we are also well placed to benefit from
planned local infrastructure investment. Our reappointment to a
four-year framework by National Grid Property extends our
relationship with this key client to 25 years.
-- In the residential sector, our core Town Planning practice is
involved in several Garden Village schemes which we expect to be a
key component of future housing provision in the UK and one in
which we are ideally positioned to be a prominent adviser. For
example, having already worked for Sigma Capital Group on more than
2,000 residential units over the last two years, they have engaged
us to deliver a further 1,000 residential units for the Private
Rented Sector with sites in the North West, Leeds, Sheffield and
Birmingham.
-- In the higher education sector, we have delivered projects at
universities in Belfast, Birmingham, Edinburgh, Keele, Lancaster,
Leicester, Liverpool, Manchester, Surrey and Teesside, including
the unique Birmingham Conservatoire. Our design teams also provide
multidisciplinary engineering services on highly complex, research
and development laboratory projects for both UK government and
higher education clients. Notably, we have been appointed as
Project Managers and Cost Managers for Ealing, Hammersmith &
West London Colleges' Hammersmith and Fulham Gateway Project which
is the College's largest and most ambitious project to date. The
GBP200m redevelopment comprises a new college building, residential
development, a new free school and a new higher education
facility.
-- We are pleased to have been appointed to support James Fisher
Nuclear Ltd in a four-year contract with Magnox to undertake
decommissioning activities at the Winfrith Site, Dorset. Whilst at
Sellafield, one of the world's most complex nuclear sites we have
run the first unmanned aerial vehicle (UAV or Drone) flight within
active areas of the site. The flight and subsequent surveying and
engineering analysis of a key asset is estimated to have provided
Sellafield Ltd with GBP100k of savings when compared with
traditional methods and we expect this use of technology to be
replicated on other strategically important and complex sites.
-- Our Facilities Management team now provide Compliance
Consultancy services to Co-op across their entire retail food
estate and the client has recently expanded our remit to their
funeral care business. We have renewed our long-term framework with
the Royal Mail Group to provide asbestos consultancy services and
extended this key relationship to include Construction Design and
Management and Principal Designer services, and Health & Safety
consultancy services.
These strengthening relationships and strong indications that
the UK Government, regardless of party, is committed to significant
new infrastructure spending, increasing the housing stock and
upgrading and extending the life of key strategic assets - the core
drivers of our business - through the National Infrastructure Plan,
give us good reason to be very optimistic about our growth
ambitions in the coming years.
A resilient economic environment in addition to these clear
long-term drivers mean that our clients remain willing to unlock
investment because they are more confident of positive outcomes. As
a result, our order book has continued to grow, closing the year 3%
up at GBP81.7m (2016: GBP79.5m) and has been boosted by the post
year-end wins referred to above, giving confidence of another year
of growth.
Europe, Africa & Asia (13% of Group revenue) - good
performance; Polish operations de-risked
In this region WYG operates through four sub-regional business
units - Central and Eastern Europe (CEE), South East Europe (SEE),
Africa, Asia and Rest of World (ARM). In the year, the EAA region
generated revenue of GBP20.5m (2016: GBP23.9m), with an operating
profit before separately disclosed items of GBP1.0m (2016:
GBP0.7m).
Once again, our performance in the region was dominated by
strong business performance and order book growth in SEE and Africa
offset by weakness in CEE. In Poland, our technical services work
is almost exclusively with Polish public sector organisations where
the public procurement process is considerably more adversarial and
frequently litigious than, for example, in the UK. We have also
seen revenue in this part of the business decline significantly
over the past three years - chiefly as a result of being at the low
point of the seven year EU funding cycle. Despite making reductions
to the cost base in Poland in each of the preceding two years, it
has been necessary to carry out significant further restructuring.
Going forward we will focus on strategic work in transport
(primarily rail) and environmental projects. Our socio-economic
business will be refocussed on regional development projects in
employment, education and economic development to take advantage of
the change of emphasis towards, and expected increase in, European
Social Funds.
Following the change of government in Poland in 2016 and the
establishment of a new Ministry of Energy there is now significant
uncertainty over the future of the Polish nuclear new build
project. Our ultimate client, PGE, have terminated their agreement
with the original main contractor and our immediate client has
reviewed its own involvement in the project. Against this backdrop,
and with no clear visibility on future revenues, we have scaled
down our core project team until the position becomes clearer.
The aggregate financial impact of our restructuring in Poland,
including making provisions against specific projects (including
the nuclear new build project) is approximately EUR3.3 million.
Going forward, we believe that the restructured business in Poland
does have a viable future. It is being managed within our wider
Consultancy Services business stream meaning that greater support
can be provided not only for technical services but also in terms
of central administration and back up.
In other parts of EAA, we have had a year of further expansion
both in terms of regional footprint and service offering. Order
book has seen significant growth in contracts won and now stands at
GBP46m (2016: GBP40m), an all-time high for our International
Development business. Our Project Preparation Facility capability
(WBIF) has expanded as we secured the EUR13m IPF 5 project - which
has been in operation now since June 2016 and is expected to double
in value later this year. Going forward we've developed a strategy
to push our infrastructure project preparation and ConnecTA
offering, which has been so successful in the Western Balkans, into
other regions - most notably in MENA and Africa.
Our Public Financial Management (PFM) practice has continued to
secure significant contract wins in West Africa: the most
significant was the second phase of the Public Sector
Accountability and Governance Programme in Nigeria with an overall
value to WYG of c.GBP6.5m. We have also greatly strengthened our
capability in East Africa opening a new office in Nairobi following
important contract wins and awards in Transport, Training and
Governance in Kenya, Tanzania and Somalia. Our state-of-the-art
Duty of Care provision puts us in an excellent position to be able
to work safely in challenging environments and we will be building
on this platform in the next year as new donor facilities move into
MENA and Sub Sahara Africa, including the EIB and the EU Emergency
Trust Fund.
We have expanded our work with the Foreign and Commonwealth
Office (FCO) and Department for International Development (DfID),
and are now well placed for the award of high value and complex
programmes with these important clients. Our Monitoring and
Evaluation practice has continued to grow, and we are now able to
extend into new middle income geographies having traditionally
focussed on developing countries in Africa and Asia. We expect to
be able to build on the exciting opportunities in our Climate
Change and Adaptation portfolio, where we have recently
successfully concluded CRIDF1, a major climate resilience programme
working across Southern Africa. In this regard, the recent
announcement that we have been awarded a major new contract to
deliver the Climate Resilient Infrastructure Facility 2 (CRIDF2) is
a very positive start to the current year. CRIDF is a major donor
funded programme which has been operating since 2013 to improve the
sustainable, equitable use of Southern Africa's transboundary water
resources. The facility aims to capitalize the development of
projects that increase the ability of communities, policy makers
and planners to cope with climate extremes. By doing so, it aims to
contribute to peaceful, climate resilient and sustainable planning
and management of Southern Africa's shared waters, and generate
current and future benefit for the region's poorest.
MENA (16% of Group revenue) - excellent performance; progress
diversifying the business
In the MENA region, we generated revenue of GBP23.8m (2016:
GBP13.2m) with an operating profit before separately disclosed
items of GBP3.0m (2016: GBP0.3m). These excellent results show that
after almost two years of delays starting projects funded under the
EU's Instrument for Pre-Accession Assistance (IPA) - a component of
the Multiannual Financial Framework 2014-2020 (MFF) - these
projects are now coming through strongly. They also demonstrate
that good operational gearing in this business generates excellent
margins when the volume of work increases.
WYG MENA generates most of its revenue from socio-economic,
technical and engineering programmes, the majority of which are
funded under the IPA. With more than 78 permanent staff operating
in and from Ankara and around 40 project based staff, as well as a
network of around 200 associates working throughout the country and
overseas, we continue to focus on our core strengths of
socio-economic consultancy, where we are the market leader in
Turkey, and technical services.
WYG's socio-economic consultancy business works on an immensely
diverse range of programmes, ranging from assistance with major
government sponsored employment and education initiatives, social
inclusion work, blood donor programmes, water education, through to
projects to increase business competitiveness and promote ethical
awareness. Whilst continuing its strong performance within Turkey,
our socio-economic consultancy business has used this experience to
offer WYG's services into the Middle East. We were successful in
winning a number of projects including a EUR3.6m project in Lebanon
to advise on the reinforcement of the National Social Security
Fund.
Our technical services business maintains its market leading
position in the water and waste water sector where we are
delivering five major projects. We have also won our first
large-scale project in the transport sector to work on Turkey's
National Transport Masterplan. We continue to make good progress
diversifying our technical services offering into the 'soft
environment' sector (climate change, agri-environment, etc)
transport, renewable energy and other sectors, and on reducing our
dependence on purely public sector clients.
Our framework contracts team which manages the rapid and
transparent recruitment of experts for short-term technical
assistance services funded by, among others, the European Bank for
Reconstruction and Development (EBRD) and the European Investment
Bank (EIB) has seen us deliver projects all around the world
including in Niger, Mali, Cambodia, Georgia and Rwanda.
Following a high level of conversion of our order book to
revenues in the reporting year, our orderbook at 31 March 2017
stood at GBP17.0m (2016: GBP24.3m) but business development
activity remains high and we are seeing good momentum in winning
new work. The proportion of our order book to be delivered in the
current financial period is around 80% giving us good reason to
believe we can maintain our growth in MENA through the current year
and beyond.
Financial review
Including our share of Joint Venture revenues, revenue for the
full year increased by 14% to GBP151.8m (2016: GBP133.5m). Revenue
in the second half was up 7% to GBP78.3m compared with the first
half of 2017 (GBP73.5m). The slower growth in the second half
reflected the previously reported delays and deferrals that
impacted us in the final quarter.
The proportion of international work has increased for the first
time in three years, despite the significant increase in UK
revenue. This is primarily the result of the excellent performance
in MENA up almost 80% from GBP13.2m in 2016 to GBP23.8m as EU
programmes financed by the MFF 2014-2020 finally started to
mobilise.
Adjusted operating profit increased by 22% to GBP8.8m (2016:
GBP7.2m) and adjusted profit before tax was up 17% to GBP8.2m
(2016: GBP7.0m), reflecting a very strong improvement in
profitability year on year. In the second half of the year we
achieved an operating profit before separately disclosed items of
GBP5.9m (2016: GBP5.0m), more than double the GBP2.8m achieved in
the first half. The improvement in adjusted operating margin to
5.8% (2016: 5.4%) was driven by a combination of better discipline
at the project level together with continued improvements in staff
utilisation and control of overhead costs and would have been
greater had we not been impacted in the UK by the cost of
increasing capacity in the final months in anticipation of work
that did not start as planned.
On a statutory basis, the Group made a profit before tax of
GBP1.6m (2016: GBP2.2m) after GBP4.0m of costs associated with
restructuring the business in line with the strategic growth plan
and the closure of certain Polish operations. Diluted earnings per
share adjusted to exclude separately disclosed items increased to
11.9p (2016: 9.8p). On a statutory basis, earnings per share were
3.3p (2016: 4.0p).
The primary component of finance costs is the charges relating
to our bond and banking facilities. Finance costs were up to
GBP0.6m (2016: GBP0.2m) as we have increased our use of the HSBC
facility and the utilisation of advance payment bonds to mobilise
large programmes of international development work.
The Group still has significant losses brought forward in the UK
meaning that it will pay a reduced rate of UK tax for the
foreseeable future. We also generate profit in many of our overseas
activities, upon which we pay local corporation tax.
After payment of GBP2.3m in deferred consideration for
acquisitions, the Group closed the year with net debt at 31 March
2017 of GBP2.5m (31 March 2016: net cash of GBP0.2m). Demands on
cash have included the planned application of GBP2.7m towards
legacy issues (including ongoing commitments on unoccupied
offices), dividend payments of GBP0.7m and GBP2.1m cash costs of
restructuring within the Group. Despite the measures taken in the
UK in the final quarter, we have also been able to maintain a
steady level of capital investment in upgrades to our offices and
IT over the year as a whole, leaving us well invested for the
current year.
We remain focussed on cash generation and the effective
management of working capital - evidenced by the fact that cash
conversion is a key performance target for the senior management
team. Our working capital KPI on an 'after fees in advance' basis,
improved to 78 days (2016: 81 days) against our KPI target of 76
days. Operating cash flow before legacy costs and investments at
GBP5.0m (2016: outflow GBP0.6m) was very significantly
improved.
As at 31 March 2017, the Group's order book stood at GBP145m
(2016: GBP143m like for like after excluding the impact of Polish
adjustments), ahead of the like for like figure at the same point
last year. It comprised UK orders of GBP82m (2016: GBP80m) and
international orders of GBP63m (2016: GBP64m).
Since the year end, recent project wins totalling c.GBP50m have
been confirmed, significantly boosting the Group's order book
meaning that, despite the significant increase in turnover last
year, we have continued to replenish the order book at a steady
rate. As a result, the order book for work to be undertaken in the
current year gives a strong basis for current year growth
expectations.
Conclusion
Overall, the Group delivered a very positive result with 14%
growth in revenue, a 22% increase in operating profit and much
improved cash generation although we anticipated a slightly
stronger profit performance in this final year of our long-term
recovery plan. It is difficult to overstate how far we have come
since 2011 and we can be proud of what we have achieved.
The business has good fundamentals: under the new operational
structure which is aligned to the five-year growth strategy
recently endorsed by the Board; strong new business leaders; a good
order book and favourable economic indicators for all our core,
front-end planning and consultancy services, we are confident of
continuing growth.
Mike McTighe
Chairman
CONSOLIDATED INCOME STATEMENT
For the year ended 31 March 2017
2017 2016
Note GBP'000 GBP'000
------------------------------ ----- ---------- ----------
Continuing operations
Revenue including share
of joint venture revenues 151,824 133,482
Less share of joint venture
revenues (1,284) (665)
------------------------------ ----- ---------- ----------
Revenue 4 150,540 132,817
Operating expenses (148,585) (130,377)
Share of result of joint
ventures 198 (17)
------------------------------ ----- ---------- ----------
Operating profit 3 2,153 2,423
Finance costs (554) (201)
------------------------------ ----- ---------- ----------
Profit before tax 1,599 2,222
Taxation 779 608
------------------------------ ----- ---------- ----------
Profit for the year 2,378 2,830
------------------------------ ----- ---------- ----------
Profit/(loss) attributable
to:
Owners of the parent 2,378 2,832
Non controlling interests - (2)
------------------------------ ----- ---------- ----------
2,378 2,830
------------------------------ ----- ---------- ----------
Earnings per share 5
Basic 3.3p 4.0p
Diluted 3.3p 3.9p
------------------------------ ----- ---------- ----------
Operating profit for the year includes net costs of GBP6.6m
(2016: GBP4.8m) that are separately disclosed in Note 3.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2017
2017 2016
Note GBP'000 GBP'000
--------------------------------------- ------ -------- --------
Profit for the year 2,378 2,830
----------------------------------------------- -------- --------
Other comprehensive income/(expense):
Currency translation difference 1,110 (195)
Tax on items taken directly
to equity* - (572)
Impact of defined pension
asset ceiling* - 2,060
Remeasurement of net defined
pension liability* - 845
----------------------------------------------- -------- --------
Other comprehensive income
for the year 1,110 2,138
----------------------------------------------- -------- --------
Total comprehensive income
for the year 3,488 4,968
Total comprehensive income/(expense)
attributable to:
Owners of the parent 3,488 4,970
Non controlling interests - (2)
----------------------------------------------- -------- --------
3,488 4,96
* These items will not be reclassified subsequently to the
income statement.
BALANCE SHEET
As at 31 March 2017
2017 2016
Note GBP'000 GBP'000
------------------------------- ----- --------- ---------
Non-current assets
Goodwill 18,193 18,193
Other intangible assets 7,325 9,295
Property, plant and equipment 3,180 3,181
Investment in joint ventures 603 407
Deferred tax assets 1,246 1,224
30,547 32,300
------------------------------- ----- --------- ---------
Current assets
Work in progress 29,986 30,372
Trade and other receivables 30,323 22,842
Retirement benefit asset - 799
Tax recoverable 370 207
Cash and bank balances 8 6,518 8,231
------------------------------- ----- --------- ---------
67,197 62,451
------------------------------- ----- --------- ---------
Current liabilities
Trade and other payables (49,608) (46,682)
Current tax liabilities (235) (931)
Financial liabilities 8 (4,000) (3,050)
(53,843) (50,663)
------------------------------- ----- --------- ---------
Net current assets 13,354 11,788
------------------------------- ----- --------- ---------
Non-current liabilities
Financial liabilities 8 (5,000) (5,000)
Retirement benefit obligation (2,115) (2,356)
Deferred tax liabilities (2,035) (2,511)
Provisions, liabilities
and other charges (3,177) (5,940)
------------------------------- ----- --------- ---------
(12,327) (15,807)
------------------------------- ----- --------- ---------
Net assets 31,574 28,281
------------------------------- ----- --------- ---------
Equity attributable to the
owners of the parent
Share capital 75 73
Translation reserve 1,495 385
Retained earnings 30,004 27,791
------------------------------- ----- --------- ---------
31,574 28,249
Non controlling interest - 32
------------------------------- ----- --------- ---------
Total equity 31,574 28,281
------------------------------- ----- --------- ---------
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the year ended 31 March 2017
Non controlling
Share Translation Retained interest Total
capital reserve earnings Total GBP'000 equity
Group GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Balance as at 1
April 2015 72 580 21,730 22,382 164 22,546
Profit for the
year - - 2,832 2,832 (2) 2,830
----------------------- ----- ------ ------ ----- ------
Other comprehensive
(expense)/income:
Currency translation
differences - (195) - (195) - (195)
Tax on items taken
directly to equity - - (572) (572) - (572)
Impact of defined
pension asset ceiling - - 2,060 2,060 - 2,060
Remeasurement of
net defined benefit
pension liability - - 845 845 - 845
Other comprehensive
(expense)/income
for the year - (195) 2,333 2,138 - 2,138
----------------------- ----- ------ ------ ----- ------
Total comprehensive
(expense)/income
for the year - (195) 5,165 4,970 (2) 4,968
----------------------- ----- ------ ------ ----- ------
Share-based payments
charge - - 1,587 1,587 - 1,587
Share issue 1 - - 1 - 1
Dividends - - (821) (821) - (821)
Reduction in minority
shareholding - - 130 130 (130) -
----------------------- ----- ------ ------ ----- ------
Balance at 31 March
2016 73 385 27,791 28,249 32 28,281
----------------------- ----- ------ ------ ----- ------
Group
Balance as at 1
April 2016 73 385 27,791 28,249 32 28,281
Profit for the
year - - 2,378 2,378 - 2,378
---------------------- ----- ------- ------- ---- -------
Other comprehensive
income:
Currency translation
differences - 1,110 - 1,110 - 1,110
Other comprehensive
income for the
year - 1,110 - 1,110 - 1,110
---------------------- ----- ------- ------- ---- -------
Total comprehensive
income for the
year - 1,110 2,378 3,488 - 3,488
---------------------- ----- ------- ------- ---- -------
Share-based payments
charge - - 906 906 - 906
Share issue 2 - - 2 - 2
Dividends - - (1,103) (1,103) - (1,103)
Reduction in minority
shareholding - - 32 32 (32) -
---------------------- ----- ------- ------- ---- -------
Balance at 31 March
2017 75 1,495 30,004 31,574 - 31,574
---------------------- ----- ------- ------- ---- -------
CASH FLOW STATEMENT
For the year ended 31 March 2017
2017 2016
Note GBP'000 GBP'000
---------------------------------------- ----- -------- ---------
Operating activities
Cash generated from/(used in)
operations 7 3,380 (966)
Interest paid (554) (180)
Tax paid (944) (321)
---------------------------------------- ----- -------- ---------
Net cash generated from/(used
in) operating activities 1,882 (1,467)
---------------------------------------- ----- -------- ---------
Investing activities
Purchases of property, plant
and equipment (1,654) (2,092)
Purchases of intangible assets
(computer software) (260) (385)
Purchase of subsidiary undertakings,
net of cash acquired (2,276) (7,875)
Net cash used in investing
activities (4,190) (10,352)
---------------------------------------- ----- -------- ---------
Financing activities
Proceeds on issue of shares - 1
Dividends paid to Company shareholders 6 (684) (821)
Drawdown of loan facility 1,000 8,000
Net cash generated from financing
activities 316 7,180
---------------------------------------- ----- -------- ---------
Net decrease in cash and cash
equivalents (1,992) (4,639)
Cash and cash equivalents at
beginning of year 8,231 12,324
Effects of foreign exchange
rates on cash and cash equivalents 279 546
---------------------------------------- ----- -------- ---------
Cash and cash equivalents at
end of year 8 6,518 8,231
---------------------------------------- ----- -------- ---------
NOTES TO THE FINANCIAL STATEMENTS
1. GENERAL INFORMATION
WYG plc is incorporated and domiciled in England. The address of
its registered office is Arndale Court, Otley Road, Headingley,
Leeds, LS6 2UJ. The company's shares are traded on AIM, a market
operated by the London Stock Exchange plc.
The principal activity of the Group during the period ended 31
March 2017 was that of programme, project management and technical
consultancy. The Group's revenue derives from activities in the UK
and the Group's International division.
The results for the year ended 31 March 2017 have been extracted
from audited accounts which have not yet been delivered to the
Registrar of Companies. The Financial Statements set out in this
announcement do not constitute statutory accounts for the year
ended 31 March 2017 or the year ended 31 March 2016. The financial
information for the period ended 31 March 2016 is derived from the
statutory accounts for that year. The report of the auditor on the
statutory accounts for the year ended 31 March 2017 was unqualified
and did not contain a statement under Section 498 of the Companies
Act 2006.
2. BASIS OF PREPARATION
Of the new standards, amendments and interpretations that are in
issue and mandatory for the financial year end to 31 March 2017,
there is no financial impact on this condensed consolidated
financial report.
Items that are material and whose significance is sufficient to
warrant separate disclosure and identification within the
consolidated financial statements are included within separately
disclosed items.
The audited accounts for the year ended 31 March 2017, from
which these results have been extracted, have been prepared on a
going concern basis.
3. DETAILED CONSOLIDATED INCOME STATEMENT
Revenue
including
share Operating Profit
of joint profit before
ventures tax
GBP'000 GBP'000 GBP'000
------------------------------------------ ----------- ------------ ---------
Year ended 31 March
2017
Before separately disclosed
items 151,824 8,768 8,214
Separately disclosed
items - (6,615) (6,615)
------------------------------------------ ----------- ------------ ---------
Total 151,824 2,153 1,599
------------------------------------------ ----------- ------------ ---------
Year ended 31 March
2016
Before separately disclosed
items 133,482 7,221 7,020
Separately disclosed
items - (4,798) (4,798)
------------------------------------------ ----------- ------------ ---------
Total 133,482 2,423 2,222
------------------------------------------ ----------- ------------ ---------
Details of separately disclosed items
2017 2016
GBP'000 GBP'000
------------------------------------- -------- --------
Share option costs (742) (1,475)
Amortisation of acquired intangible
assets (1,863) (1,533)
Other charges (4,010) (1,790)
Separately disclosed items (6,615) (4,798)
------------------------------------- -------- --------
The Group has incurred a number of material items in the year,
whose significance is sufficient to warrant separate disclosure.
The key elements included within separately disclosed items
are:
-- Annual charge in relation to share option costs.
-- Annual charge for the amortisation of acquired
intangibles.
-- Items included in other charges in the year relate to
restructuring costs and the release of surplus vacant leasehold
provisions, net of credits in relation to deferred acquisition
balances. The prior period relates to restructuring costs net of a
credit in relation to the legal settlement of the 1986 Pension
Scheme and the release of surplus vacant leasehold provisions.
The directors believe that the performance measure of operating
profit before separately disclosed items gives a better view of
underlying trading for the Group and enables the user of the
accounts to more accurately understand the Group's performance.
Although the share option costs and amortisation of intangible
assets are charges which occur annually, the directors excluded
those charges from operating profit before separately disclosed
items because their value is significant and they are not related
to the underlying performance of the business.
The other charges in the year relate to costs incurred for the
strategic growth plan and the closure of certain Polish operations.
As these charges are expected to be one off in nature, the
directors believe it is appropriate to exclude them from operating
profit before separately disclosed items. The other charges for the
prior period related to the winding up of the WYD Pension Scheme
and strategic review costs, net of the credit for the finalisation
of the 1986 Pension Scheme legal settlement.
4. SEGMENTAL INFORMATION
Business segments
IFRS 8 requires segment reporting to be based on the internal
financial information reported to the chief operating decision
maker. The Group's chief operating decision maker is deemed to be
the executive management team comprising of the Chief Executive
Officer and the Chief Financial Officer. Its primary responsibility
is to manage the Group's day-to-day operations and analyse trading
performance. The Group's segments are detailed below and are those
segments reported in the Group's management accounts used by the
executive management team as the primary means for analysing
trading performance. The Executive Committee assesses profit
performance using operating profit measured on a basis consistent
with the disclosure in the Group accounts.
The Group's operations are managed and reported by key market
segments:
-- UK;
-- EAA (Europe, Africa and Asia); and
-- MENA (Middle East & North Africa including Turkey, which
accounts for 71% of the total MENA revenue).
The segment results for the year ended 31 March 2017 are as
follows:
UK EAA MENA Group
2017 2017 2017 2017
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- -------- --------
Revenue
External revenue 107,595 20,469 23,760 151,824
Less share of joint
venture revenues - (1,284) - (1,284)
--------------------------- -------- -------- -------- --------
107,595 19,185 23,760 150,540
Operating profit
before central
overheads and separately
disclosed items 9,056 1,020 2,984 13,060
Central overheads (4,292)
--------------------------- -------- -------- -------- --------
Operating profit
before separately
disclosed items 8,768
Separately disclosed
items (note 3) (6,615)
--------------------------- -------- -------- -------- --------
Operating profit 2,153
Finance costs (554)
--------
Profit before tax 1,599
Tax 779
--------
Profit for the
year 2,378
Profit attributable
to non controlling
interests -
Profit attributable
to the owners of
the parent 2,378
4. SEGMENTAL INFORMATION CONTINUED
The segment results for the year ended 31 March 2016 are as
follows:
UK EAA MENA Group
2016 2016 2016 2016
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- -------- --------
Revenue
External revenue 96,328 23,941 13,213 133,482
Less share of joint
venture revenues - (665) - (665)
--------------------------- -------- -------- -------- --------
96,328 23,276 13,213 132,817
--------------------------- -------- -------- -------- --------
Operating profit
before central overheads
and separately disclosed
items 10,325 671 258 11,254
Central overheads (4,033)
--------------------------- -------- -------- -------- --------
Operating profit
before separately
disclosed items 7,221
Separately disclosed
items (note 3) (4,798)
Operating profit 2,423
Finance costs (201)
--------
Profit before tax 2,222
Tax 608
--------
Profit for the year 2,830
--------
Loss attributable
to non controlling
interests (2)
Profit attributable
to the owners of
the parent 2,832
5. EARNINGS PER SHARE
The calculation of basic and diluted earnings per share is based
on the following data:
2017 2016
GBP'000 GBP'000
-------------------------------------- -------- --------
Earnings for the purposes of
basic and diluted earnings per
share being profit for the year 2,378 2,832
Adjustment relating to separately
disclosed items (see note 3) 6,615 4,798
Tax impact of separately disclosed
items (354) (599)
-------------------------------------- -------- --------
Earnings for the purposes of
basic and diluted adjusted earnings
per share 8,639 7,031
-------------------------------------- -------- --------
2017 2016
Number Number
----------------------------------- ----------- -----------
Number of shares
Weighted average number of shares
for basic earnings per share 71,131,521 70,638,773
Effect of dilutive potential
ordinary shares:
Share options 1,560,338 1,317,148
Weighted average number of shares
for diluted earnings per share 72,691,859 71,955,921
----------------------------------- ----------- -----------
Earnings per share
Basic 3.3p 4.0p
Diluted 3.3p 3.9p
----------------------------------- ----------- -----------
Adjusted earnings per share
Basic 12.1p 10.0p
Diluted 11.9p 9.8p
----------------------------------- ----------- -----------
The adjusted earnings per share is calculated after excluding
separately disclosed items (see note 3). This more accurately
reflects the underlying performance of the Group.
6. DIVIDS
The final dividend of 1.0p per share for the year ended 31 March
2016 (2015: 0.7p per share) was paid in September 2016. The interim
dividend of 0.6p per share for the year ended 31 March 2017 (2016:
0.5p) was approved on 1 December 2016 and paid in April 2017 and
was accrued in the financial statements at 31 March 2017. The total
amount recognised during the year was GBP1,103,000 (2016:
GBP821,000).
The Directors have proposed a final dividend of 1.2p per share
for the year ended 31 March 2017 (2016: 1.0p). This has not yet
been approved by shareholders and so is not included as a liability
in the financial statements.
7. CASH GENERATED FROM/(USED IN) OPERATIONS
2017 2016
GBP'000 GBP'000
---------------------------------------------- -------- --------
Profit from operations 2,153 2,423
Adjustments for:
Depreciation of property, plant
and equipment 1,670 1,362
Amortisation of intangible assets 2,235 1,979
Loss on disposal of property, plant
and equipment 4 58
Share options charge 742 1,475
---------------------------------------------- -------- --------
Operating cash flows before movements
in working capital 6,804 7,297
Decrease/(increase) in work in progress 1,976 (7,508)
(Increase)/decrease in receivables (7,030) 365
Increase/(decrease) in payables 1,630 (1,120)
---------------------------------------------- -------- --------
Cash generated from/(used in) operations 3,380 (966)
---------------------------------------------- -------- --------
8. ANALYSIS OF CHANGES IN NET CASH/(DEBT)
At Other At
1 April Cash non-cash 31 March
Group 2016 Flows Items 2017
GBP'000 GBP'000 GBP'000 GBP'000
--------------------------- -------- -------- --------- ---------
Cash and cash equivalents 8,231 (1,992) 279 6,518
Bank loans and overdrafts (8,000) (1,000) - (9,000)
--------------------------- -------- -------- --------- ---------
Net cash/(debt) 231 (2,992) 279 (2,482)
Cash in restricted
access accounts (1,070) (68) (76) (1,214)
--------------------------- -------- -------- --------- ---------
Unrestricted debt (839) (3,060) 203 (3,696)
--------------------------- -------- -------- --------- ---------
Restricted cash relates to restricted access accounts in WYG
International Limited. Other non-cash movements represent currency
exchange differences.
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
END
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