Consultant says it will close offices in bid to cut ’unsustainable’ levels of debt
WYG has announced a pre-tax loss of £28.6m for the nine months ended 31 March 2011. The global consultancy firm said the group’s “current level of debt is unsustainable” and is addressing the losses through the company’s ongoing capital restructuring plan.
Real-time Share PriceWYG plans to raise £30m from capital restructuring which will involve the closure of a number of offices.
In the last two years the company has cut costs by £110m and has released more than 50% of its staff.
A third of the value of WYG was wiped out on the stock market this morning as shares fell 4.17p to 8.58p.
However in more positive news for the company, revenues increased in its overseas markets. The value of the firm’s international order book grew to £104.0m from the £100.6m recorded for the year ended 30 June 2010.
Paul Hamer, chief executive officer of WYG, said: “WYG has undergone tremendous change over the last two years which has been challenging for everyone associated with the group.
“The operational restructuring of the business is now substantially complete and WYG is much better placed to exploit the opportunities available to us in our chosen international markets.”