WYG shares fall following profit warning

WYG shares fall following profit warning

Shares in WYG fell by more than 60 per cent after the Leeds-headquartered professional services firm warned that profits are set to fall “materially below” expectations.

The firm said UK markets have been impacted by the “current cautious business sentiment and political uncertainty”, leading to delays in investment decisions and the deferral of activity on some existing projects.

As a result, it has had to take a more cautious view of its UK business.

The company does not expected to meet either of the net debt to EBITDA or interest cover covenants within its facility agreements for 31 March 2019 and has opened discussions with its lending bank in a bid to secure a deferral or waiver of the relevant covenant tests.

WYG’s share price fell from a high of 38.50p per share to a low of 12p per share yesterday (13 February 2019), before closing at 22p.