WYG Plc (AIM:WYG): Contract win

WYG, the global project management and technical consultancy, is pleased to announce it has recently been awarded two major new framework contracts with UK government agencies and a significant new contract in Africa in its international development market. Together, the contracts are estimated to be worth approximately £50m to WYG over the next three years.

· The UK Defence Infrastructure Organisation (DIO) is an arm of the UK Ministry of Defence (MoD) and plays a vital role in supporting our Armed Forces by building, maintaining and servicing the UK’s defence infrastructure. DIO is primarily responsible for implementing the estate optimisation plan, the sale of sites associated with that plan and, more broadly, investing in the estate to make it more efficient and better able to support the UK’s military capability. Recently DIO decided to move to a Regional Commissioning Model (RCM) and we are delighted to announce that we have been appointed, under the DIO PSP UK framework, as DIO’s preferred Principal Support Provider (PSP) for new projects in both the Central and Southern regions of the UK. The amendment to our existing PSP framework is initially for one year but can be extended in one year increments up to a maximum of three years. We estimate that our expanded Delivery Partner role under the new model could double our existing £12m per annum revenue in each of the next three years.

· The UK government’s Crown Commercial Services £2.9bn flagship framework provides central government customers and the wider public sector with Project Management and Full Design Team services to support their property and construction projects. WYG has been included on this framework under three separate lots. Projects will be secured as a result of mini-competitions or direct awards in accordance with government procurement rules. The framework is initially for two years though this can be extended in one year increments up to a maximum of four years. We estimate that the framework could be worth up to £3m per annum over the duration of the framework.

· In Southern Africa, the Climate Resilient Infrastructure Facility (CRIDF), is a major donor funded programme which has been operating since 2013 to improve the sustainable, equitable use of Southern Africa’s transboundary water resources. The facility aims to capitalize the development of projects that increase the ability of communities, policy makers and planners to cope with climate extremes. By doing so, it aims to contribute to peaceful, climate resilient and sustainable planning and management of Southern Africa’s shared waters, and generate current and future benefit for the region’s poorest. Initially, WYG will provide services with a fee value of up to £5m over the next two years with the likelihood that this will expand significantly.

Paul Hamer, Chief Executive Officer, said:

“These contract wins are testament to the range and quality of our technical expertise both in Consultancy Services across the UK and in our International Development business. They build our strong track record in delivering major long term infrastructure projects for the UK government and its major agencies.

“In a highly competitive environment, the award of two out of three of the regions under DIO’s Principal Support Provider Regional Commissioning Model – covering all of England and Wales – is particularly pleasing and confirmation that during our work for the MoD over the past 25 years we have continually refreshed our approach to help the MoD to deliver its operational capability.

International Development programmes such as CRIDF finance hundreds of projects leveraging billions of pounds in infrastructure investment and are vital components in enhancing the prospects of peace, stability and security in fragile and conflict affected states.”

For more information visit http://www.wyg.com/investors

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