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The move follows an announcement by the company last week that it may breach its net debt to EBITDA (earnings before interest, tax, depreciation and amortisation) covenant.

It has debt of 拢91m against EBITDA of 拢32.1m, which is a ratio of 2.8, just under the maximum of 3.

Paul Hamer (pictured), WYG鈥檚 managing director, said: 鈥淚t鈥檚 self-evident that the balance sheet needs restructuring. If you compare us to our peer group, we get less positive sentiment from the City.鈥�

He declined to reveal how much WYG was trying to raise but Richard Rae, an analyst with RBS, suggested that the figure was likely to be between 拢30m and 拢40m.

He said the company鈥檚 current capital structure was not sustainable, adding: 鈥淎 fund raising materially less than 拢30-40m would not conclusively address balance sheet concerns.鈥�

The company is understood to be seeking the cash from both existing and new investors but one source close to the situation said Hamer had ruled out asking private equity groups for funds.

They said: 鈥淭he rationale behind that decision is the inability by private equity companies to confidently raise debt against forward projections in what is a very volatile market.鈥�

Hamer, who took over from Lawrie Haynes two months ago, also revealed the company was planning to open an office in Abu Dhabi by the end of March to boost its weak presence in the region.

He said: 鈥淵es, we are coming late to the party but this isn鈥檛 a charge over the hill by us. It鈥檚 still a significant opportunity and we will only be pulled over there by key clients and relationships.鈥�