White Young Green has reported an increased loss and reduced turnover less than two months after a debt for equity swap removed the company from the London Stock Exchange, but the company remains optimistic in the face of ‘challenging’ market conditions.
In interim results, published today, the consultant reported a slim £3.5M profit on the back of five-fold international growth but stagnant conditions at home, compared to £12.1M profit a year ago.
After exceptional items, this translates to a loss of £4.6M, more than double last year’s figure of £2.1M. It says this is broadly in line with board expectations.
The company’s margin also fell considerably, from 9.8% last year to just 3.4% this year.
In the six months to December 2009, revenue reduced by 20% to £115.2M from £144.5M in the same period a year ago.
Revenue from in-house services also declined, by 19% from £123.4M last year to £100.2M this year.
Despite the numbers, the company says it now has a solid platform to grow from. The company’s shareholders agreed refinancing terms at a special meeting on 6 January, then implemented on 8 January.
WYG Group’s Chief Executive Paul Hamer said: “The restructuring has created a strengthened and more appropriate capital structure as a platform upon which to build a sustainable, strong and resilient business that is better positioned to compete more effectively in our chosen markets.
“We have continued to make good progress in our recovery programme during the period. Trading conditions were and remain generally challenging but we now have the financial platform on which to develop for the future. Overall our trading during the period has been, and remains, in line with the Board’s expectations.
Because 60.5% of its shares are now owned by the comapny’s banks and taken out of free trading, the company was forced to de-list from the main Stock Exchange list, but has since re-listed on the AIM list.