A confident AGM/H115 trading update indicated that WYG Plc (LONDON:WYGR) has good business momentum in the UK, and increasingly, in international regions. Consequently, a strong H2 PBT uplift is in prospect and this should serve to bring management’s longer-term profit aspirations into sharper focus. For now, the company is trading on a current year P/E of 13.0x, which
based on our estimates, reduces to 9.8x by FY18.
UK strong in H1, good order position going into H2
In a H115 trading update, WYG noted a “very strong” performance from UK operations. There will have been some annualised benefit here from the acquisition of Alliance in September last year, but progress is understood to have been broadly balanced across several sectors, in conditions considered to be fairly buoyant. With adjusted PBT for the group for the first half expected to be in line with last year, implicitly profit from International operations was lower y-o-y; a slow start to the EU Multiannual Financial Framework 2014-2020 and this year’s annual budget funding programme was flagged previously. Recent EU activity levels have increased and the international order book is now 20% higher than in March. With the UK order book also up by 15%, trading momentum looks encouraging going into H2.
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