Project delays hit WYG profits

Consultant WYG is warning that UK profit levels for the current year will not be as high as market expectations due to project delays.

In a trading update to the City today WYG said: Although revenue during the fourth quarter, traditionally the Group’s strongest trading period, is expected to be higher than in the same period last year, a combination of programme deferrals on existing contracts and some delays in the confirmation of new contracts has led to weaker than anticipated profit performance. 

“Frustratingly, the Group’s higher margin service lines have seen a greater incidence of project delays.

“This, together with the investment we have made in building our UK capacity in anticipation of even higher activity levels that have not materialised, is expected to result in UK profitability for the year being lower than in 2016.”

Paul Hamer, Chief Executive Officer of WYG, added: “Whilst our profit performance in the UK will not be as strong as we expected, growth across the Group and particularly the performance of our international operations provides tangible evidence that the Group’s strategy to build a more broadly based, resilient and balanced business is starting to bear fruit.”

from Construction Enquirer http://www.constructionenquirer.com/2017/03/23/project-delays-hit-wyg-profits/

via Tumblr http://ndbasilica.tumblr.com/post/158733585489