WYG completes restructure after £22m loss

Engineering consultant WYG has undergone a major restructure as it posts a £22m pre-tax loss.

The firm is moving away from a structure based on geographic business units to one based on capability, with each area of activity managed on a global basis.

The four key market segments will be: buildings and critical infrastructure, transport solutions, energy, sustainability and environment, and risk and assurance services.

This process is now substantially complete. The firm said: “Our ambition is that the group operates in a seamless and “boundary-less” manner on a global platform across all our operations to meet the needs and ambitions of our clients”.

The restructure follows a cost-cutting exercise that has seen employee numbers reduced by 620. 

WYG also announced results for the financial year ended 30 June which show a drop in revenue from £261.6m last year to £220.6m and an pre-tax loss of £21.9m compared with a £129m loss in 2009.

However, it has also spent £8.1m on redundancies and office closure costs.

Mike McTighe, chairman, said: “This year was one of great change at WYG.  A major capital restructuring was successfully completed, the future strategic direction and organisation of the group was established and costs were significantly reduced in response to the very difficult market conditions in the UK and Ireland.  Good progress was made in implementing the three-part strategy which we embarked on in January 2009. 

“This focuses on creating a more efficient business structure that is fit for purpose, globalises our core capabilities and creates “peaks of excellence” in our chosen markets and geographies”.

Looking forward McTighe said he expects the domestic market to remain very challenging and unpredictable for the foreseeable future and that the firm will look to increase its presence in international markets.

He added: “Although I am pleased with the progress made during the year to reshape the group so that it continues to successfully compete on a global platform, I expect ongoing focus on cost and structural efficiency over the next 12 months. 

“The much awaited outcome of both the comprehensive spending review and the strategic defence spending review continues to induce paralysis across both the public and private sector markets.  The likelihood therefore is that, despite our international success, the short-term future will remain very challenging for the group”.