WYG has announced that it expects its operating profit to be “substantially” lower than current market expectations in a statement made to investors.
In the new statement the consultant further revised its expectations of operating performance for the final months of the financial year. It said it now expected operating profit to be in the range of £3.5M to £4M with net debt in the region of £6M to £7M.
Despite the international development business performing broadly in line with previously revised expectations, it said its consultancy services business had continued to experience lower trading volumes than anticipated.
It attributed this to the loss or delay of certain new contracts which it had previously expected to win in the current period, and significantly lower than anticipated volumes of work under certain major framework contracts.
“Although it is very disappointing to be making a further announcement revising expectations of WYG’s near term performance, the board is confident that the underlying business is robust and that, supported by a strong order book, we are taking the correct steps to return to a growth trajectory in the medium term,” said WYG chief executive Douglas McCormick.
In August this year, the company issued its first revised expectation but said it continued to expect revenue for the current year to exceed £160M representing continuing year-on-year growth in line with market expectations.
At the time it said one of the reasons for the revised outlook was due to its planning and transport planning practices performing below expectations in the early months of the year, and operating profit from the core area, to be significantly below budget.