Engineer announces strategic review that puts it in a formal “offer period”
WYG has announced it is considering a range of options to ‘take full advantage of its growth potential’ as part of a review that could recommend the sale of the business, a merger, strategic partnership or new borrowing agreements.
In a statement to the London Stock Exchange the business said it was achieving strong growth and “creating almost more opportunities than it can readily service directly” under its existing growth model.
The business completed a financial restructuring in 2011 that implemented a strategy of refocusing operations with a strong international-development capability.
WYG said it had achieved a turnaround in profitability and was now well positioned for future growth, as was evidenced in its half-year results in November last year.
Those results showed a reduced half-year loss and a 13% increase in revenue to £40m for WYG’s UK business, driven by growth in infrastructure and planning work.
Its statement today said: “Against this background, the Board of WYG recognises that this strategic review may or may not conclude that, given its current relative scale, being part of a larger business or expanding the scale of its current operating platform would provide significant advantages and better position the company to take full advantage of its growth potential.
“At this stage, however, all options available to the company are being considered.
“The review will, therefore, incorporate a range of strategic options including a potential corporate transaction, such as a strategic partnership, a merger or acquisition to enhance the scale and breadth of WYG’s platform, the acquisition of or subscription for the company’s securities by a third party, a sale of the company, a new or extended bank facility or continuing to invest in expanding the business organically and through partnerships and bolt-on acquisitions.”