Engineer looks at deals in emerging markets as part of six-year recovery plan
WYG has begun eyeing acquisitions in emerging markets as it recovers from a refinancing deal that was forced on it after a previous shopping spree.
Paul Hamer, chief executive of theLeeds-based engineering consultant, said any deal would be part of a new growth strategy and added that WYG was still undergoing a 鈥渃leansing process鈥� after the mistakes of the past.
After WYG spent 拢85m on 18 companies in five years, last January it completed adebt-for-equity swap that left its banks owning 60.5% of the company.
Hamer, who took over from Lawrie Haynes last March, said: 鈥淲e have identified a number of targets to strengthen our global capability. For example, accessing south-east Asia is expensive and time-consuming unless you make acquisitions.
鈥淗e emphasised that acquisitions were not likely before 2012, when the second three-year period of the firm鈥檚 recovery plan begins. Hamer said the company was 鈥渞acing towards鈥� its target of earning half of its turnover from outside the UK and Ireland by 2012/13. It would also follow clients into new markets including Brazil, he added.
Hamer said the company was on track with the recovery plan and was hitting targets set by its bank, including reducing net debt to 拢34m by 30 June 2010.
The chief executive said the next three years would be about 鈥渞eturning value to the shareholders鈥�. It is understood the banks could exit by selling to another private investor or floating its share.
Announcing its results this week (see box), the company said it had split into four new divisions: buildings and critical infrastructure; transport solutions; energy, sustainability and environment; and risk and assurance services. Group turnover fell 16% from 拢262m to 拢221m while pre-tax loss narrowed by 拢107m to 拢21.8m.
Hamer said of the new divisional structure: 鈥淚n consulting we will end up with half a dozen global behemoths of 50,000 to 60,000 people. Global clients can buy scale or look for bespoke niche services so we have gone from a 鈥檍ack of all trades鈥� approach to offer a better tailored service in order not to get trampled by the elephants playing in the grass.鈥�
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