month=06
year=2009
30 June 2009
|
For immediate release
|
30 June 2009
|
White Young Green plc
Pre-close statement
White
Young Green plc (the “Company” or the “Group”) is today issuing the following
pre-close statement for the year ending 4 July 2009.
Trading
The Board’s expectations remain unchanged from those
announced on 18 May 2009.
As
previously announced, White Young Green will incur significant exceptional
costs in the year ending 4 July 2009. These exceptional costs arise
predominately from the restructuring of the Group and relate to redundancy and
office closure costs, impairment of goodwill and the writedown of work in
progress and accounts receivable balances. The final level of impairment and
writedown required will be determined following a balance sheet review after
the year end, and will be announced as part of the Company’s full year results
announcement.
The Group continues to make significant progress in
implementing its strategy which is centred on creating more focused and
efficient businesses and internationalising WYG. The restructuring of the
Group's operations is substantially complete as planned as the year end
approaches. Whilst trading conditions across the businesses continue to
be mixed and challenging, the Group has secured a number of significant contract
wins in the UK, Republic of Ireland and overseas. These
include:
·
WYG International has recently signed a €4.9
million contract to support the European Commission to deliver three year
programme for regional development in Serbia
·
WYG International will be providing consultancy services
under a project funded by the European Union aimed at ensuring the effective
development and management of migration policy throughout Africa Caribbean and
Pacific regions (ACP)
·
WYG Management Services has been appointed by the
London Borough of Merton to project manage circa £7.5m of new buildings and
facilities for the 6th Form Curriculum Entry at four schools in Merton (ahead
of full redevelopment under Building Schools for the Future)
·
WYG Management Services will be supporting the
Connect Plus consortium as Construction Design and Management Co-ordinator on a £1.25 billion project to widen key
sections of the M25
·
WYG Environment has been commissioned by
Hertfordshire County Council to advise them on the environmental issues on a
site in Hatfield to be potentially used as a long term residual waste treatment
service
Financing
As
previously announced, White Young Green is in discussions with its lenders with
a view to renegotiating its existing banking facilities. As part of this
process, the lenders have agreed to defer the forthcoming covenant test date
from the year end date initially to 31 July 2009. The margin on the banking
facilities has been increased to 3.0% above LIBOR. The Board expects that a further deferral of
the covenant test date will be requested.
A further announcement will be made in due course as appropriate.
Enquiries:
White
Young Green 0113
278 7111
Paul
Hamer, Chief Executive Officer
David
Wilton, Group Finance Director
Buchanan
Communications 020
7466 5000
Lisa Baderoon