But firm says efficiency review helping offset problems

douglas mccormick index

Consultant WYG has said an efficiency review is taking the sting out of a slowdown in work abroad and the impact of higher bid costs.

In a trading update, the firm said some schemes abroad had been hit by delays while existing jobs had taken longer to get going. And it said it had spent more on bid costs in the six months to the end of September.

But it said an efficiency review launched earlier this year was helping offset the problems.

Chief executive Douglas McCormick (pictured) said: “We continue to work hard to deliver a significant and sustained improvement in operating margins from current unacceptably low levels, together with a more consistent cash conversion profile.

“We are making progress in developing a simpler, more robust business platform and implementing the recommendations identified in our business-wide efficiency review.”

It added that revenue for the full year would be at a similar level to 2017’s number which saw income stand at £153m. It added: “The group will record a modest improvement in operating profit for the year as a whole.”

WYG said it was also due to receive an outstanding payment from one of its overseas clients “very shortly”. It is due to unveil its half year results in early December.

In the year to March 2018, the firm racked up a pre-tax loss of £5.3m.