Results and Proposed Deferral

 

TIDMWHY 
 
RNS Number : 6386B 
White Young Green PLC 
30 October 2009 
 

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| For immediate release                      |                            30 October 2009 | 
+--------------------------------------------+--------------------------------------------+ 
 
 
White Young Green plc 
 
 
Results for the year ended 30 June 2009 and proposed restructuring and covenant 
deferral 
 
 
White Young Green plc, international multidisciplinary consultant, announces its 
results for the year ended 30 June 2009, together with the terms and conditions 
of its proposed restructuring. 
 
 
Operational summary: 
 
 
  *  Agreement in principle reached with lenders for a three year 
  refinancing, subject to legal documentation and shareholder approval 
  *  GBP12m profit before taxation, exceptional and other items 
  *  Committed bond facilities for internationalising White Young Green plc 
  *  Strengthened senior leadership team 
  *  Good progress against implementing our three part strategy 
 
 
 
Financial summary: 
  *  Net revenue decreased by 8% to GBP213.9m (2008: GBP232.1m) 
  *  Operating profit before exceptional and other items decreased by 36% to GBP17m 
  (2008: GBP26.4m) 
  *  Operating loss after exceptional and other items of GBP123.7m (2008: GBP22.2m 
  profit) 
  *  Exceptional and other items were GBP141m (2008: GBP4.2m) 
  *  Profit before taxation and before exceptional and other items was GBP12.1m 
  (2008: GBP21m) 
  *  Reported loss before tax of GBP128.9m (2008: profit of GBP16.8m) 
  *  No dividend payment in financial year 
  *  Underlying earnings per share (before exceptional and other items) of 17.6p 
  (2008: 31.6p) 
  *  Reported loss per share of 246p (2008: earnings of 28.4p) 
  *  Significant reduction in UK and Irish support services markets due to impact of 
  global recession 
 
 
 
* Exceptional and other items represent exceptional costs and the amortisation 
of acquired intangibles (customer relationships and order books). 
 
 
Proposed restructuring: 
The Company is pleased to announce the agreement of terms for a proposed capital 
restructuring which is subject to legal documentation and shareholder approval. 
 
 
The proposed restructuring will provide the Group with a strengthened and 
sustainable long term capital structure enabling the Company to compete more 
effectively in the current challenging environment. 
 
 
· The heads of terms for the proposed restructuring envisage the Banks 
converting approximately GBP50m of the debt owed to them into new ordinary 
shares and new preference shares in the Company. The balance of the monies owing 
to the Banks will be refinanced by the Banks into term debt facilities and 
working capital facilities, including EUR38m of committed bonding facilities, each 
with a three-year term. 
 
· On completion of the restructuring, the lenders would own approximately 60.5% 
of the enlarged issued ordinary share capital, while a new employee benefit 
trust would own approximately 24.5% and existing shareholders approximately 15%. 
 
· As part of the total reduction in borrowings of approximately GBP50m, the 
lenders will be issued GBP30m of preference shares for conversion of GBP30m of 
outstanding borrowings. 
 
· The proposed restructuring would require shareholder approval at an 
extraordinary general meeting, with the lenders having agreed to defer testing 
of covenants until after the extraordinary general meeting, or 14 December 2009, 
whichever is the earlier. 
 
· The purpose of the new employee benefit trust would be to hold shares for the 
purpose of incentivising directors, key managers and employees and to ensure 
that the interests of those key employees and shareholders are closely aligned. 
 
· Once finalised, the precise details of the proposed restructuring will be set 
out in more detail in a circular, to be sent to shareholders in due course. 
 
· The Directors currently intend, should the restructuring be approved by 
shareholders, to cancel the admission of the ordinary shares to the Official 
List and to trading on the London Stock Exchanges market for listed securities 
and to apply for admission of the ordinary shares to trading on AIM 
 
 
Commenting on the results and proposed restructuring, Non Executive Chairman 
Mike McTighe, said: 
 
 
"Trading conditions remain challenging, although there are variations across the 
differing markets served by the Group. There remains a lack of confidence and 
liquidity in many areas in which we trade, but there are also some encouraging 
signs in respect of opportunities and new contract wins. 
 
 
We have reached a constructive outcome with the lenders and we are pleased with 
their long term support. Given current market conditions, we recognise that the 
proposed financial restructuring is designed to ensure the stability of the 
Company. We have restructured operationally to focus on areas of strength and 
opportunity to be well positioned to benefit when overall economic conditions 
improve. We are investing, and will continue to invest to provide a strong 
platform for the future. 
 
 
With a new leadership team and a restructured balance sheet White Young Green 
plc will be putting in place fundamental building blocks to enable the Company 
to benefit from profitable opportunities at home and internationally, while 
continuing to take a prudent and cautious view of the market. It has been a very 
difficult year from which we emerge better prepared to meet the challenges and 
address the opportunities of the future." 
 
 
 
 
The White Young Green plc senior management team will provide briefings for 
analysts at Buchanan, 45 Moorgate, London EC2Y 9AE during Friday 30 October 
2009.  Please contact Tim Anderson on 020 7466 5000 for further information. 
 
 
For further information, please contact: 
 
 
White Young Green plcTel: 0113 278 7111 
Paul Hamer, Chief Executive Officer 
David Wilton, Group Finance Director 
 
 
Buchanan Communications Tel: [phone] 
Tim Anderson / Lisa Baderoon 
 
 
 
 
Chairman's statement 
 
 
We have been through profound change in the last 12 months which has seen the 
company restructure its finances, operations, processes and senior leadership 
team to ensure it is focused on building a sustainable, strong and resilient 
long-term business that is better positioned to face the opportunities and 
challenges ahead. All of this being undertaken against the backdrop of a global 
recession. 
 
 
The support services sector has seen a major decline in valuations, driven by 
the dramatic reduction in demand for services across infrastructure, private and 
residential investment and major publicly funded schemes. We, like our peers, 
have been heavily impacted by this market decline. In particular, the Group's 
overexposure and reliance on certain markets in the Republic of Ireland and its 
diversified Great Britain Engineering offering has markedly affected trading. 
 
 
In early 2009 we developed a new strategy for the Group which focuses on 
creating a more efficient business structure that is fit for purpose, 
internationalising White Young Green plc core capabilities, and creating 'peaks 
of excellence' across critical and sustainable sectors. 
 
 
Significant progress has been made in implementing this strategy although there 
remains much still to be done to build a stable operating platform to deliver 
predictable and sustainable results for the future and create future value for 
our stakeholders. 
 
 
To create a fit for purpose business, we continue to restructure our business 
operations and balance sheet. We have addressed legacy issues and have acted to 
strengthen the underlying business infrastructure. During this process we have 
incurred very significant exceptional costs relating to redundancies, office 
closures, the write down of work in progress and trade receivables balances, 
provisions for professional indemnity claims, professional 
fees, the impairment of goodwill, and other related costs. 
 
 
I am delighted to report that we have now signed heads of terms with our 
Lenders regarding the terms of a three year financing facility. These heads of 
terms are not legally binding but have been approved by the credit committee of 
each bank. The level of debt on the balance sheet would be reduced significantly 
and the Lenders would subscribe for new ordinary shares and new preference 
shares in White Young Green plc. The completion of the proposed restructuring is 
conditional, inter alia, upon execution of documentation satisfactory to White 
Young Green plc and its Lenders and on the approval of White Young Green plc's 
shareholders at an Extraordinary General Meeting. It is expected that a 
shareholder circular containing further details of the restructuring and 
convening the EGM will be sent to shareholders in due course. Upon completion of 
the refinancing the Lenders would in aggregate own approximately 60.5 per cent 
of the issued ordinary share capital of White Young Green plc and we expect to 
move the company's share listing to the Alternative Investment Market. 
 
 
All of our stakeholders recognise the importance of our employees and as part of 
the refinancing, we propose introducing additional equity incentives for 
directors and key employees. The ongoing support of our lenders and shareholders 
is welcome and the Board is pleased to have agreed, in principle, a long term 
financing facility that would include committed bonding facilities to support 
our international operations and that is appropriate for the group as a whole. 
 
 
During the year White Young Green plc has made progress in diversifying its 
geographical presence and has also broadened its international service offering 
into core technical areas of expertise including engineering, project 
management, and environmental and planning consultancy services. In the last 12 
months, we have developed in countries where we already have a strong project 
based foothold and reputation with clients. The Company registered and opened a 
new office in Kazakhstan and plans for opening an office in Ukraine are 
underway. The Middle East and Africa continued to show good growth and a new 
office in Pretoria is planned to be followed by one in Cairo in the next 12-18 
months. 
 
 
Despite some challenging issues, our commitment to quality was recognised by the 
industry.  White Young Green plc were awarded a RoSPA Occupational Health and 
Safety Gold Medal Award for 2009 and named Consultant of the Year in the 
Contract Journal Construction Industry Awards 2008. We have also picked up 
numerous accolades and project awards this year throughout the business 
including the Building Awards Housing Project of the Year (Adelaide Wharf), 
British Construction Industry Award (BCIA) Best Building Award (The Yellow 
Building) and Royal Institute of British Architects (RIBA) Award (Curve Theatre, 
Highcross, Pond Meadow, Yellow Building, Tyneside Cinema). 
 
 
To strengthen the executive team during the financial year, the Board appointed 
David Wilton, Group Finance Director and Graham Olver, Group Services Director 
and Company Secretary. Lastly, I took over as Non Executive Chairman of White 
Young Green plc in August this year. 
 
 
The Board has concluded that the company should change its name from White Young 
Green plc to WYG plc to align the name and branding of the company with the 
other companies in the Group. A resolution to approve the change of name will be 
put to shareholders at the AGM. 
 
 
With a refreshed Board, a new senior executive team, and proposals for a 
restructured balance sheet, White Young Green plc is in the process of putting 
in place the fundamental building blocks for the future. It has been a very 
difficult year for your company. However, we are emerging from it better 
prepared to meet the challenges and opportunities of the future. 
 
 
 
 
 
 
 
 
 
 
THE RESTRUCTURING 
 
 
The Company has been in extensive discussions with its Banks and has considered 
various means of re-balancing its capital structure and reducing the Company's 
level of net borrowings. This follows a lengthy period of negotiations that 
started in February 2009, when we published our interim results for the six 
months to 31 December 2008 and announced a potential breach of a banking 
covenant. The proposed restructuring involves the conversion to equity of a 
significant proportion of the Group's bank borrowings together with refinanced 
three year committed borrowing facilities. The Board believes that this proposed 
debt to equity exchange and the borrowing facilities would provide a material 
strengthening of the Company's capital structure and financial position. 
 
 
This proposed restructuring comprises the following outline terms: 
 
 
  *  the proposed conversion of approximately GBP50m of the Group's indebtedness into 
  new ordinary shares and new preference shares in the Company. In addition, the 
  Company has agreement in principle with the lenders to put in place 
  approximately GBP58m of refinanced debt facilities and EUR38m of committed bonding 
  facilities, each with a three-year term. 
 
 
 
  *  on completion of the restructuring, the lenders would own approximately 60.5% of 
  the enlarged issued ordinary share capital, while a new employee benefit trust 
  would own approximately 24.5% and existing shareholders approximately 15%. 
 
 
 
  *  as part of the total reduction in borrowings of approximately GBP50m, the 
  lenders will be issued GBP30m of preference shares for conversion of GBP30m of 
  outstanding borrowings. 
 
 
 
  *  the proposed restructuring would require shareholder approval at an 
  extraordinary general meeting, with the lenders having agreed to defer testing 
  of covenants until after the extraordinary general meeting, or 14 December 2009, 
  whichever is the earlier. 
 
 
 
  *  the purpose of the new employee benefit trust would be to provide share 
  incentives for directors, key managers and employees. 
 
 
 
  *  once financed, the precise details of the proposed restructuring will be set out 
  in more detail in a circular, to be sent to shareholders in due course. 
 
 
 
  *  the Directors intend, should the restructuring be approved by shareholders, to 
  cancel the admission of the ordinary shares to the Official List and to trading 
  on the London Stock Exchange's market for listed securities and to apply for 
  admission of the ordinary shares to trading on AIM. 
 
 
 
 
 
At the date of this announcement certain uncertainties exist which are disclosed 
in note 3 to the financial information. 
 
 
BUSINESS REVIEW 
 
 
The Business Review has been prepared by the Board for the members of White 
Young Green plc to provide a summary of the performance and financial position 
of the Group in the year to 30 June 2009, together with the underlying trends 
and factors which are likely to affect future performance. 
 
 
The global economic recession has impacted many of our markets with the UK 
private sector and Republic of Ireland experiencing greatest downturn in demand. 
Investment in the private development sector has dropped sharply with many 
schemes cancelled or suspended and this is also mirrored across house-building 
infrastructure and land regeneration. 
 
 
The imbalance of the Group's revenues between domestic and international markets 
has created severe trading impacts in Great Britain/Republic of Ireland and 
whilst swift management action has been taken to address this, we anticipate 
that some of the markets served will remain at depressed levels for the 
foreseeable future. 
 
 
The year ended 30 June 2009 has been the most challenging in the history of 
White Young Green plc. We have implemented major changes to be fitter, stronger 
and better positioned to face the challenges ahead. Significant progress has 
been made in implementing our three-part forward strategy which is centred on 
creating a more focused and efficient business, internationalising our company 
and creating 'peaks of excellence' across critical and sustainable sectors. As 
previously announced, decisive action has been taken to re-structure our 
operations with significant reductions in headcount and the closure of offices 
as we concentrate on stronger, quality focused regional centres. 
 
 
We have incurred substantial exceptional costs arising from the change programme 
and we continue to focus on working capital management and cash generation. 
Selective but necessary investment is being made in strengthening our management 
team and in information systems. Furthermore, improvements are being made to our 
governance framework. 
 
 
 
 
Financial performance 
 
 
In the year to 30 June 2009, gross revenue decreased by 7% to GBP261.6m (2008: 
GBP282.1m). Revenue attributable to third parties, on which we don't make a 
margin, decreased to GBP47.7m (2008: GBP50.0m). Net revenue, which reflects the 
value of work done by our people, decreased by 8% to GBP213.9m (2008: 
GBP232.1m). 
 
 
The profit performance reflects both the challenging market conditions and the 
major restructuring of the Group. Operating profit before the amortisation of 
acquired intangibles and before exceptional costs (exceptional and other items), 
decreased by 36% to GBP17.0m (2008: GBP26.4m). There were no acquisitions 
completed during the year. Operating loss after exceptional and other items, was 
GBP123.7m (2008: GBP22.2m profit). Operating margin on net revenue was 7.9% 
(2008: 11.4%). The profit before taxation and exceptional and other items was 
GBP12.1m (2008: GBP21m) which is in line with the profit forecast announced in 
the Interim Management Statement on 18 May 2009. Exceptional and other items 
were GBP141.0m (2008: GBP4.2m). 
 
 
It is worth noting that in the first half of the financial year Group generated 
operating profit before exceptional and other items  of GBP12.1m and the 
comparable figure for the second half of the financial year was GBPnil. 
 
 
Basic earnings per share were 17.6p (2008: 31.6p) adjusted for exceptional and 
other items referred to above. 
 
 
Cash generated from operations decreased to GBP12.5m (2008: GBP31.0m) and 
represents 74% (2008: 117%) of operating profit before exceptional and other 
items. In May 2009, we converted EUR38m of debt into Sterling to reduce exposure 
taken earlier in the financial year to Euro denominated debt. 
 
 
Net debt at the year end was GBP85.3m (2008: GBP68.2m) which represented a 
significant reduction from the half year figure of GBP91.5m. The reduction in 
the second half is a creditable performance bearing in mind the payment of 
GBP3.1m of additional consideration in respect of the acquisition of PH McCarthy 
Consulting Engineers Limited and the payment of GBP7.6m of exceptional cash 
costs arising on the restructuring of the Group. These net debt figures are 
consistent with those previously disclosed and include both cash balances held 
within our captive insurance company and restricted cash balances held 
predominantly within the International Business Unit. The net debt excluding 
these two categories at the year end was GBP88.7m. The comparable figures for 30 
June 2008 and 31 December 2008 were GBP71.6m and GBP94.4m respectively. We 
believe that the revised definition presents a fairer view of the net debt 
position as it only reflects cash that is readily available to the Group. 
 
 
Our Board is encouraged by the prospects for the future against a market which 
continues to be unpredictable and, at times, volatile.    The order book now 
stands at GBP260m. We have changed the way we record and monitor our order book 
such that the disclosed figure reflects only secured contracts and approved 
purchases under framework orders. Within the order book are international orders 
of EUR153m. Comparable figures prepared on the same basis are not available for 
the previous year. 
 
 
Dividend 
 
 
As we continue to focus on the generation and preservation of cash, no final 
dividend is proposed. No interim dividend was paid. The terms of the proposed 
refinancing include a restriction prohibiting the payment of a dividend whilst 
the facilities remain outstanding and until the preference shares are redeemed 
in full. 
 
 
Strategy 
 
 
Our three-part strategy, adopted in January 2009, is to create a more focused 
and efficient business, internationalise our company and create 'peaks of 
excellence' across critical and sustainable sectors. The first part of the 
strategy is to create a "fit for purpose" Group. This has involved right sizing 
the business against the changing marketplace and has been largely completed. We 
have undertaken a further review of the work in progress and trade receivable 
position and have taken a substantial exceptional charge in respect of a 
provision against these balances at the year end in addition to the provision 
taken at the half year. We have also taken swift and substantial measures to 
reduce costs. This process started in the first half of the financial year and 
has been substantially completed by the year end. These necessary steps will 
ensure we emerge from the current economic recession with a leaner and more 
competitive shape, which will provide a fundamental platform for future growth. 
All five of our Business Units and head office have been involved in this 
process, particularly the UK Engineering and Ireland Business Units. Across the 
Group there have been significant headcount reductions and office closures. 
There has also been a focus on cash management, the strengthening of the 
management teams and the introduction of new processes and procedures to 
strengthen the governance environment. 
 
 
The second part of the strategy is to internationalise White Young Green plc and 
continue to build on our international business in five key geographic regions 
where we have established a strong position across growing and funded markets. 
Initiatives have been undertaken to mobilise our comprehensive strengths, which 
have historically been focused on the UK and Republic of Ireland, into selected 
overseas markets on a cost effective and low risk basis. These initiatives are 
ongoing and are predicated on building our existing relationships with major 
blue-chip clients. 
 
 
The third part of the strategy is to focus on the creation of 'peaks of 
excellence' by identifying and building on core areas of strength in the UK and 
overseas, whilst instigating cultural change and the retrospective integration 
of past acquisitions. This part of the strategy is at a relatively early stage 
although the culture of focusing on quality is now firmly embedded into the 
Group. 
 
 
Acquisitions 
 
 
In the past White Young Green plc has been a highly acquisitive company. There 
were no acquisitions during this financial year, but there were payments of 
additional consideration in respect of past acquisitions, totalling GBP8.0m. 
 
 
Board 
 
 
There have been extensive changes at Board level during the year. Denis Connery, 
Commercial Director and Company Secretary, and Lawrie Haynes, Chief Executive, 
left the Group on 5 November 2008 and 6 January 2009 respectively. Following 
Lawrie Haynes' departure, Peter Wood, the then Chairman, agreed to increase his 
time in the business and Paul Hamer, previously Chief Operating Officer, was 
promoted to Group Managing Director. On 10 February 2009, David Wilton was 
appointed Group Finance Director and Robert Hartley, the previous Finance 
Director, took on the role of Group Services Director in addition to his role as 
Company Secretary. On 11 March 2009, we unfortunately had to announce that Peter 
Wood would be stepping down as Chairman, and as a member of the Board, for 
personal and family reasons on 31 March 2009. At that time Brian Duckworth was 
appointed Non Executive Chairman until the Board made a long term appointment in 
due course. Paul Hamer was promoted to Chief Executive Officer. At the same 
time, Robert Hartley notified the Board of his intention to resign as Group 
Services Director and Company Secretary and to leave the Group which he 
subsequently did on 14 April 2009, when David Wilton took on the role of Company 
Secretary. 
 
 
On 31 July 2009 Mike McTighe's appointment as Chairman was announced, as was 
Graham Olver's appointment as Group Services Director and Company Secretary, 
with effect from 3 August 2009.  Brian Duckworth stepped down as Chairman and 
left the Board on 3 August 2009.  On 31 July 2009, the Company also announced 
that after 12 years as a Non Executive Director, John Richardson has decided to 
retire from the Board. John has, as a consequence of the proposed refinancing, 
subsequently agreed to remain as a director of the Company until 31 December 
2009 and will be seeking re-election at the next Annual General Meeting. We 
thank Brian for his major contribution to the development of White Young Green 
plc. The Board has initiated a search for two new Non Executive Directors, one 
of whom will be appointed as Chairman of the Audit Committee. 
 
 
Employees 
 
 
We are a people business and our success is wholly dependent upon the commitment 
and professionalism of our staff. The financial year was marked by a significant 
reduction in headcount across the Group and the introduction of labour 
cost-saving arrangements in the face of the global economic recession. Difficult 
decisions have had to be taken in the interests of the Group, none of which have 
been taken lightly by the Board. We remain committed to the attraction, 
development and retention of professional staff to enable us to deliver high 
quality services into the markets in which we operate. 
 
 
 
 
Exceptional and other items 
 
 
As previously announced, we have incurred substantial exceptional costs in the 
financial year. These exceptional costs arose predominantly from the 
restructuring of the Group, and relate to redundancies and office closure costs, 
the write down of work in progress and trade receivables balances, provisions 
for professional indemnity claims, professional fees arising in connection with 
a prospective offer and fees arising on the refinancing and the impairment of 
goodwill and other general restructuring costs. A significant element of the 
overall exceptional cost involves the creation of provisions and does not 
represent an immediate cash cost, and in the case of the goodwill impairment 
will not incur a cash cost in the future. The other items relate to the 
amortisation of customer relationship and order book intangible assets. The 
exceptional and other items are summarised below: 
 
 
+----------------------------------------------------------+--------------------+ 
|                                                          |    Year to 30 June | 
|                                                          |               2009 | 
+----------------------------------------------------------+--------------------+ 
|                                                          |               GBPm | 
+----------------------------------------------------------+--------------------+ 
| Employee termination costs                               |                9.0 | 
+----------------------------------------------------------+--------------------+ 
| Office closure costs                                     |               20.6 | 
+----------------------------------------------------------+--------------------+ 
| Work in progress and trade receivables provisions        |               20.5 | 
+----------------------------------------------------------+--------------------+ 
| Professional indemnity claim provisions                  |                5.7 | 
+----------------------------------------------------------+--------------------+ 
| Professional fees                                        |                3.4 | 
+----------------------------------------------------------+--------------------+ 
| Impairment of goodwill                                   |               77.2 | 
+----------------------------------------------------------+--------------------+ 
| Other restructuring costs                                |                2.0 | 
+----------------------------------------------------------+--------------------+ 
| Finance costs                                            |                0.4 | 
+----------------------------------------------------------+--------------------+ 
| Exceptional items                                        |              138.8 | 
+----------------------------------------------------------+--------------------+ 
| Amortisation of acquired intangibles                     |                2.2 | 
+----------------------------------------------------------+--------------------+ 
| Exceptional and other items                              |              141.0 | 
+----------------------------------------------------------+--------------------+ 
 
 
Outlook 
 
 
Trading conditions remain unpredictable and challenging, although there are 
variations across the differing markets served by the Group. There remains a 
lack of confidence and liquidity in many areas in which we trade, but there are 
also some early encouraging signs in respect of opportunities and new contract 
wins. 
 
 
Trading for the financial year to date is in line with the Board's expectations. 
 
 
We have restructured to focus on areas of strength and opportunity to be well 
positioned to benefit when overall economic conditions improve. We are 
investing, and will continue to invest to provide a strong platform for the 
future. 
 
 
Operating performance by Business Unit 
 
 
The operating performance in the year to 30 June 2009 reflected both the 
challenging market conditions, particularly in the second half of the financial 
year, and also the profound restructuring process across the Group. Gross 
revenue decreased by 7% to GBP261.6m (2008: GBP282.1m). Conditions in the 
private sector have been challenging and there is likely to be strong pressure 
on public sector spending in the short to medium term. In direct contrast, our 
international markets continue to experience strong demand and present a major 
Group opportunity for selective and sustainable growth. 
 
 
WYG Engineering 
 
 
WYG Engineering has experienced recessionary pressure in several of its markets 
which has resulted in an overall reduction of gross and net revenues.  Against 
this backdrop, the management team has acted swiftly in restructuring the 
Business Unit into a more efficient operation, configured to align with client 
demand.  Greater emphasis has been placed on reducing debtors and aged debtor 
levels and making efficiency improvements to our working practices. 
 
 
Over the year, gross revenue reduced by 20% to GBP76.2m (2008: GBP94.8m), net 
revenue reduced by 21% to GBP69.3m (2008: GBP88.2m) and operating profit before 
exceptional and other items reduced by 60% to GBP2.1m (2008: GBP5.3m). 
Operating margin on net revenue decreased to 3% (2008: 6%) as a result of the 
reduction in revenue noted above. 
 
 
In line with the Group's three-part strategy, our focus has been on creating 
'peaks of excellence' across critical and sustainable sectors where we have a 
strong reputation, good experience and there is evidence of continued spending. 
These are education, health care, defence, regeneration, rail and highways. 
 
 
We have taken decisive action to create a more efficient and streamlined 
business that is aligned to the changing demands of the market and, at the 
beginning of the financial year, we carried out a pre-planned operational 
re-structuring to create three primary divisions, Buildings, Rail and Highways. 
 
 
Our Buildings division continues to enjoy an award winning reputation in key 
regional centres across Great Britain which underpin and complement the high 
quality capability and reputation that is led by Adams Kara Taylor (AKT) in 
London.  A combination of quality and innovation has resulted in AKT, a 
strategic acquisition made by White Young Green plc in 2006, becoming critical 
to the success of a truly enviable range of award winning and iconic structures. 
Demand for this service remains, albeit at reduced volumes. Examples of our work 
include the Stirling Prize winner Peckham Library in London, the Phaeno Building 
in Germany, the Yellow Building in London and Pond Meadow in Guildford. 
 
 
Across our other offices in Great Britain we continue to provide a high quality 
service and project delivery and to build our reputation for client care. We are 
recognised for this through award winning projects such as the Corby Rail 
Station Scheme which won the Institution of Highways and Transportation's 
Effective Partnership award. 
 
 
Publicly funded development has also provided a sustainable income stream for us 
in health care, education and defence. NHS estates departments and local primary 
care have been significant sources of work particularly in acute hospitals.  We 
have secured repeat and new business from this important sector through focus on 
client needs, delivery of service and deployment of key quality resources.  We 
have developed long standing strategic corporate relationships, particularly 
with leading contractors, and have benefited from the Government's 'Building 
Schools for the Future' (BSF) initiative which has seen large scale investment. 
Key reputation enhancing projects were delivered in Nailsea, Nottingham and 
Burnley and further schemes have been won in Cheltenham and Essex BSF. 
Furthermore, we are supply chain partners in four teams for the second wave of 
the National Academies Framework. 
 
 
White Young Green plc is ranked by leading industry journal, New Civil Engineer, 
as a top five consultant as defined by turnover in the defence sector.  This is 
supported by an extremely diverse track record of skills and experience with the 
Navy, Army and RAF. 
 
 
All this is in addition to projects secured with WYG Management Services which, 
as client adviser, complements our collective service offering. Although the 
location, mix and proportion of schemes will change as defence needs vary, we 
expect that investment in the estate will continue at or above current levels. 
In our Rail division, Network Rail's strategic business plan for 2007 set out 
ambitious levels of investment and growth.  The implementation period was five 
years, and in 2008, it remained disappointingly slow with major opportunities 
slow to evolve  into investigation and design stages.  We are lead designer on a 
number of major projects including Edinburgh Waverley Station, Axminster, 
Tunbridge Wells, Edinburgh to Glasgow Improvement Programme (jointly with 
Transport for Scotland) and North London Lines.  We are first tier suppliers on 
all of these significant schemes and, per National Rail's strategic business 
plan, we expect levels of spending to increase from January 2010 onwards. 
 
 
Revenues in our Highways division have remained stable in the context of a 
reducing market. We expect the market to continue to soften but, due to the long 
term nature of our commissions, we do not anticipate any reduction in demand for 
our services. 
 
 
In summary, the trading conditions across our markets have, and continue to be, 
mixed and challenging.  However, WYG Engineering has created a platform for 
future success that should enable it to deliver sustainable profit and growth in 
future years. 
 
 
WYG Environment Planning Transport 
 
 
Our environmental, planning and transport planning activities were amalgamated 
in 2008 to form WYG Environment Planning Transport. These consulting services 
are largely focused on serving the early permission stages of site or project 
development.  WYG Environment Planning Transport is one of the market leaders in 
the provision of these services and also provides one of the broadest ranges of 
services to this market. 
 
 
Over the year, gross revenue decreased by 3% to GBP53.8m (2008: GBP55.3m), net 
revenue decreased by 1% to GBP45.6m (2008: GBP46m) and operating profit before 
exceptional and other items reduced by 20% to GBP6.3m (2008: GBP7.9m). Operating 
margin on net revenue fell to 14% (2008: 17%) largely as a result of low 
utilisation in those disciplines that experienced down turns in work. 
 
 
We faced a challenging market environment, as the industry of site acquisition 
and development shrank in the face of credit shortages, falling demand for 
residential units and falling commercial rents. Despite these factors we have 
broadly maintained revenues and operating profitability while undertaking, in 
some specific areas, necessary restructuring. 
 
 
The majority of our planning and environmental planning businesses have largely 
succeeded in maintaining revenues as we continue to work on longstanding client 
schemes and to enhance our position as one of the leading retail planning teams 
in the country; our transport planning revenues have grown during 2008/9 
suggesting that we have gained market share of a falling market in this field. 
Some of our environmental consulting services - notably those linked to strict 
regulation and government penalty or incentive regimes, such as asbestos 
management and renewable energy, have also experienced considerable growth 
during the year. 
 
 
Nearly 50% of our environmental work in 2007/08 related to the clean-up of 
brownfield land. This sector has experienced a reduction in fee income as 
instructions on new sites dried up in the second half of 08/09 and as site 
owners deferred clean up programmes. We have significantly reduced our headcount 
and introduced flexible working to align our resources and costs to the future 
demand for our services. 
 
 
  *  Environment 
 
 
 
In Environment we have had a difficult and uneven year with volatile and 
unpredictable market conditions. However, our wide range of services and clients 
reduced the impact of the downturn across many parts of the business. Costs have 
been minimized and support services rationalized in order to maximize 
profitability. 
 
 
In some disciplines, such as ecology, asbestos, noise and air, the order book 
has held up well and we consider that we have gained market share of consulting 
revenues from the competition. Other disciplines, which are heavily dependent on 
construction, such as geo-environmental services, have been restructured 
accordingly to manage a decreasing workload and, in addition to reduction in 
work volumes, pricing and profit margins have been affected. Against this 
backdrop, there appear to be signs for optimism; with visible pipelines in 
certain sectors and some large geo-environmental opportunities on the horizon. 
 
 
With a new and efficient business structure, we are ready to respond in areas 
where the market recovers quickest, including investing in sustainability 
services which brings together a strong team to build on our current track 
record. We believe that this sector will grow steadily despite any recessionary 
focus in the wider economy, due to the rising regulatory burden concerning 
carbon and other aspects of climate change. 
 
 
 
 
  *  Planning 
 
 
 
Against a very challenging economic background, WYG Planning & Design achieved a 
marginal increase in business compared with 2008. Profitability was, however, 
reduced as a result of recognising and writing down trade debtor balances and 
work in progress. The order book is down on 12 months ago but still stands at 
80% of budgeted net revenues. 
 
 
Our business has held up strongly in key sectors, notably retail, regeneration 
and public sector services. We continue to provide advice to retail developers 
on major schemes across the country. As regards public sector work, we have 
undertaken key projects for the Department for Communities and Local Government, 
providing research into and advising on improvements to the planning system; we 
have continued to provide support for many local authority clients in policy 
making, development control and master-planning. We provide services under a 
number of public sector framework agreements to central government in England 
and Wales and to the Regional Development Agencies. Towards the year end, the 
house building sector was beginning to show signs of recovery and our widely 
diversified portfolio of business activity has also held us in good stead with 
continuing demand for services in the health care, education, minerals, energy 
and private client sectors. 
 
 
In line with the three-part strategy of creating a fit for purpose business, we 
made a limited number of redundancies mainly in our design teams, although our 
team in Milton Keynes, newly-established at the start of the year, has created a 
momentum which appears to bode well for the year ahead. 
 
 
A growing feature of our business is the value to clients of being able to 
package a stream of specialist skills in support of development proposals so as 
to improve streamline delivery and coordinate management of project inputs. 
 
 
  *  Transport 
 
 
 
During the year, orders and workload have remained steady although at a lower 
level than experienced in the previous year and the management team has taken 
speedy action to reduce costs through a small number of redundancies and 
removing non business critical expenditure. 
 
 
Demand from certain key clients has remained strong during the recession 
including Sainsburys, Land Securities and National Grid Property. Public Sector 
bodies including county councils, district councils and the Highways Agency also 
continue to supply a steady flow of work. 
 
 
As part of our strategy and in support of our existing client-base, a new 
transport planning operation was established in Edinburgh and this has a growing 
workload with a positive order book and provides advice for all Sainsbury's 
projects in Scotland. 
 
 
Elsewhere in the UK, we continue to be appointed to advise major land owners and 
developers on strategic, sustainable urban extensions. We have been appointed by 
Land Securities as strategic transport advisers on their proposals for between 
10,000 and 20,000 residential units at North Harlow. In Rugby, we have been 
appointed by a joint venture of BT, Arriva and Prologic to advise on development 
of a sustainable urban extension of over 6,000 residential units. 
 
 
We have also been appointed by BT to advise on their site search for wind farm 
projects. Furthermore, we have advised McLaren on their proposals for a new 
production car factory of some 37,000 sqm in Woking. 
 
 
On the international front, transport planning has made a senior appointment to 
service transport related work being commissioned by the European Commission. 
This is already bearing fruit with proposals submitted for a number of major 
projects and involvement of UK towns in demonstration schemes. We have also 
significantly enhanced our links with WYG International offices in Poland, the 
Gulf and Turkey. 
 
 
Overall and against a mixed trading landscape, WYG Environment Planning 
Transport has continued to perform in its key markets and streamlined its wider 
operation to ensure it continues to provide a high-quality, value-added service 
to its clients in an efficient and effective manner. 
 
 
 
 
WYG Management Services 
 
 
WYG Management Services is the project management, property management, cost 
consultancy and safety management division of the Group.  We are known to our 
clients through three brands; WYG Management Services, Tweeds and Trench Farrow. 
The utilisation of these well established and highly regarded brands in the 
market has proved a successful strategy in the face of the challenging trading 
conditions. 
 
 
Over the year, gross revenue decreased by 18% to GBP28.5m (2008: GBP34.6m), net 
revenue decreased by 20% to GBP24.3m (2008: GBP30.4m) and operating profit 
before exceptional and other items reduced by 24% to GBP3.2m (2008: GBP4.2m). 
Operating margin on net revenue fell to 13% (2008: 14%). 
 
 
Market sectors and trading conditions continue to vary across our client base 
with cost consultancy most exposed to the challenging economic cycle and the 
downturn in commercial and residential development.  This has seen the 
proportion of revenue generated from the public sector increase to 64% from 46% 
last year. Whilst the proportion of our public sector turnover has increased in 
response to market conditions, we have been successful in transferring this 
additional workload to improve the balance in offices more dependent on private 
sector clients. Our forward strategy is to retain our private sector capability 
which is vital for when the market cycle returns to support this client base. 
Furthermore, much of our public sector projects are in support of estate 
rationalisation and development driving cost savings for Government. We are 
therefore less exposed to possible cuts in public spending as much of the work 
is in committed programmes to deliver savings in budget. 
 
 
In line with the three part strategy to create a fit for purpose business, we 
have introduced flexible working arrangements and implemented redundancies in 
areas where we are experiencing a slow order book and have rationalized our 
operating centres to retain critical mass in key office locations which match 
client demand.  We have also successfully transferred work previously undertaken 
by third parties to our in-house teams and allocated employees to sectors that 
continue to show solid demand. This puts us in the best position to retain 
skilled employees, ready for the upturn in key sectors such as commercial and 
residential development. 
 
 
We have retained an involvement, albeit with a reduced input, in many of our 
major residential urban extension projects. It is pleasing to note that many of 
our residential development clients are now looking to re-engage on projects 
that have been delayed by market pressure over the last twelve months. We remain 
very active in the social and affordable housing market as many stock transfer 
and Residential Social Landlord projects have been unaffected by market 
downturn. We also continue to be successful in the Education sector having 
secured frameworks with Partnerships for Schools and directly with Local 
Education Authorities. 
 
 
Whilst the corporate and end user office market remains slow, we have been 
appointed on re-planning projects as our existing clients look to make the most 
efficient use of their real estate. Some of the larger mixed use development 
schemes have been delayed in the current market; however we continue to work 
with these clients who are using our services to secure the most effective 
solution to their portfolio. In the North West of England we are working closely 
with Neptune Developments and have ongoing appointment as Employers Agent, 
Quantity Surveyor and Construction Design Management (CDM) for the Mann Island 
and New Brighton Developments in Liverpool. 
 
 
WYG Management Services is a high quality, high value provider of client support 
and advisory services with much of our historic and recent workload generated 
through repeat business based on referral, reputation and long term client 
relationships. During the course of the year we secured a number of awards 
including the British Council of Offices for the redevelopment of 55 Baker 
Street for London and Regional Developments, whilst the Mountbatten Project at 
the University of Southampton secured a Royal Institute of British Architects 
award. Our understanding of innovative procurement in challenging circumstances 
was proved in the delivery of the Mountbatten Project. The redevelopment of the 
complex followed a devastating fire and created cutting edge research facilities 
for computer and opto-electronic schools. The University was an existing client 
and valued our forward thinking procurement proposals so much that our 
appointment was extended to include the installation and commissioning of the 
specialist research equipment.  This expertise will stand us in good stead for 
the future. 
 
 
We are building on this award winning track record to secure further business in 
new sectors and overseas markets to counteract the downturn in some of our 
clients' activities in the UK. This focus has resulted in increased activity 
overseas, as we look to build on existing WYG International presence in Poland, 
Russia and Turkey. In addition we are actively targeting the Middle East and 
North Africa having provided executive project management services for the 
GBP300m retail and leisure development of Cairo Festival City in Egypt. 
Furthermore, we continue to support Interhealth Canada and the Government of 
Turks & Caicos Islands in the development of two modern $80m hospitals on the 
islands of Grand Turk and Providenciales. These hospitals will become the basis 
of a full health care service where we are providing independent adviser 
services during construction and commissioning.  Our direct invitation to be 
involved on this project followed the successful completion of an orthopaedic 
hospital for Interhealth Canada in Runcorn. 
 
 
As a result of our planned diversification into new sectors, we have also been 
successful in our appointment to provide construction safety management services 
for the GBP1.25bn PFI project to widen the M25 motorway. 
 
 
WYG Management Services continues to sustain and secure work across its key 
markets and through its ongoing reputation for high-quality services, will look 
to build on its position in the public sector and align itself for the private 
sector upturn. 
 
 
WYG Ireland 
 
 
The Irish economy has seen a severe and continued decline across all 
construction, development and infrastructure sectors over the last 12 months 
which has impacted WYG Ireland and the wider support services market. 
 
 
Ernst & Young's Economic Eye Forecast (May 2009) predicts that the economy in 
the Republic of Ireland will shrink by 8.9% in 2009 with a modest contraction 
continuing into 2010 before a recovery in 2011. 
 
 
Over the year, gross revenue decreased by 3% to GBP50.3m (2008: GBP52m), net 
revenue decreased by 8% to GBP43.1m (2008: GBP46.7m) and operating profit before 
exceptional and other items reduced by 45% to GBP3.8m (2008: GBP6.9m). 
Operating margin on net revenue fell to 9% (2008: 15%). 
 
 
The impact of global recession on Northern Ireland's economy is not expected to 
be as severe as in the Republic of Ireland or indeed the rest of the UK. 
Predictions are that the local economy will decline by 2.9% in 2009 - comparing 
favourably with other areas of the UK, where it is expected to be in the region 
of 3.5%. 
 
 
In addition, employment levels in the Republic of Ireland will not return to 
their peak period (2007) until the year 2021 compared to 2018 for a similar 
recovery in Northern Ireland.  This means for many people throughout the whole 
of Ireland, the recession will have a significant impact on many individuals. 
 
 
WYG Ireland has seen a decline in its revenues and profitability. During this 
period the management team has taken the necessary restructuring steps to ensure 
the cost base is in line with the current needs of the business and resource 
levels are aligned to the present and future anticipated workload. 
 
 
During the course of the year we initiated a programme to reduce our cost base 
to reflect the market conditions with every facet of the business scrutinised. 
 
 
This strident action required us to make some very tough decisions, particularly 
regarding employees, where we have reduced our total headcount by almost a third 
on the previous year. We also engaged in a rationalisation of our operational 
properties and this led to the closure of five offices. 
 
 
These steps have been taken to ensure the business remains competitive during 
the recession and quickly capitalises on opportunities when the markets return 
to growth. 
 
 
Within WYG Ireland, we have aligned ourselves very closely with the Group's 
three-part strategy which seeks to re-shape the business. In July 2008, we 
entered a new phase in our evolution with the introduction of an all Ireland 
discipline-led business model.  This model supports our strategy of having 
technical excellence at the core of everything we do. We are now committed to 
working together to truly deliver a multi-discipline service to meet the needs 
of our existing and future clients. 
 
 
Following the introduction of White Young Green plc's internationalising 
initiative, we have appointed an international director for Ireland and 
currently act as the Group sponsor for Poland.  More recently, Ray Moore, the 
managing director of WYG Ireland has been appointed as the group lead on the 
Gulf region.  We have already placed a number of people from our business 
overseas and we will look to win contracts in those areas as well as 
establishing ourselves further in the countries in which we already have a 
presence. 
 
 
Like most businesses throughout Ireland, the global recession has had an impact 
on us. However, we are continuing to hold our own, particularly in Northern 
Ireland thanks to a number of recent contract wins, including an appointment for 
our project managers from the Northern Ireland Prison Service to manage the 
design and building programme of a new GBP200m 800-cell prison at the existing 
Magilligan site in Co. Londonderry. We have also secured some key projects in 
areas such as health and education - namely the redevelopment of Whiteabbey 
hospital in Co. Antrim and more recently, a major contract to provide civil and 
structural engineering and environmental consultancy services for the new 
GBP150m Desertcreat Training College near Cookstown. 
 
 
There have also been some encouraging developments in the Republic of Ireland 
with the appointment of our mechanical and engineering, fire and sustainability 
consultants on the EUR350m redevelopment of the Electricity Supply Board 
headquarters in Dublin.  Our environmental and planning team in Ireland 
continues to provide many sought after services.  Statutory process requires 
environmental issues to become a core consideration for both development and 
operational businesses. As a result, there has been a strong retention of market 
interest in our services, particularly in environmental management systems and 
also due diligence services. Sustainability is a key pillar in development 
principles in Ireland and we are supporting our clients in addressing the 
challenges that they face in this area as well as influencing national 
approaches to the sustainability agenda. Notable project wins for the 
Environmental and Planning team this year have included the groundwater 
monitoring programme for the Environment Protection Agency, continued services 
on the Envirowise Programme, the regeneration of the former Maze Prison and Long 
Kesh security site, Co. Antrim, and a planning application including an 
Environmental Impact Statement for a 350 MW Powerplant for Lumcloon Energy, 
Ferbane, Co. Offaly. 
 
 
It has been a challenging year for the entire Irish economy and within that 
context, WYG Ireland has re-shaped itself significantly to meet the challenges 
ahead.  The business is built on the quality of its people and it is this key 
factor which will create future success when the economy returns to growth. 
 
 
WYG International 
 
 
WYG International provides social and economic regeneration consultancy together 
with the core technical skills of Engineering, Management Services and 
Environment, Planning and Transport.  The Business Unit generated 20% of the 
gross revenue of the Group (2008: 16%). 
 
 
Over the year, gross revenue increased by 16% to GBP52.8m (2008: GBP45.5m), net 
revenue increased by 52% to GBP31.7m (2008: GBP20.8m) but operating profit 
before exceptionals and other items reduced to GBP1.5m (2008: GBP2.1m). 
Operating margin on net revenue fell to 5% (2008: 10%) as we retained resource 
to ensure we were in the best possible position following transitions in Poland, 
Romania and Bulgaria. These transitions have now been successfully completed. 
 
 
Our international order book has continued to grow in the year and now stands at 
GBP86m. New appointments in this period have included a migration project in 
Turkey, developing the economy in Serbia and a significant GBP8.3m project to 
improve the living conditions and rights of populations across Africa, the 
Caribbean and Pacific areas through management of migration. 
 
 
We also prepared over the year for our move to a new Group regional structure 
which we implemented on 1 July 2009. In seeking to grow the international work 
of the Group significantly over the next few years we are focusing on our core 
areas of strength in Central and Eastern Europe, the Balkans and the 
Commonwealth of Independent States: and putting investment into accelerating our 
growth in the Middle East and Africa and in the Gulf. 
 
 
Central and Eastern Europe 
 
 
In Poland, diversification was a core requirement in response to a changing 
investment environment as the country mobilised EU Structural Funds to combat 
the economic downturn. As a result, we restructured the business to provide a 
more effective response to public and private sector clients in both the 
socio-economic and technical services sectors.  This resulted in over 350 
contract wins, with a total fee value of more than EUR21m. 
 
 
Regionalisation was another important theme and business challenge. In a number 
of projects "Investment in People" advisory and training services were provided 
to Regional Labour Offices for the unemployed or those threatened by 
unemployment, as well as for staff and managers of enterprises seeking higher 
profitability and competitiveness. We also provided support to regional 
authorities in their efforts to accelerate badly needed investments in 
infrastructure, and especially in roads and transport and this work has included 
investment preparation (strategies, feasibility studies, Environmental Impact 
Assessments, financing plans), design (sections of regional and national road 
networks), and construction (supervision and project management services). 
 
 
In Romania and Bulgaria, the transition was successfully achieved from English 
language, pre-EU accession programmes to locally procured projects, bid in local 
languages and financed mainly through the EU Structural and Cohesion Funds and 
Operational Programmes. In Romania, the team was strengthened significantly over 
the course of the year, particularly in respect of the business development and 
finance functions, making it largely self-sufficient. This team has established 
itself as one of the most successful in the area of socio-economic technical 
assistance projects in the country and at the end of the year was implementing a 
portfolio of projects with a combined value of EUR114.4m. 
 
 
In Bulgaria the first half of the year was relatively difficult, with a scarcity 
of suitable projects.  However, the second half of the year was more encouraging 
and a number of major proposals in the field of municipal infrastructure were 
submitted before the end of the year. A vocational training centre was 
established and while it has already successfully delivered a number of training 
courses, it will deliver the greatest benefit when the relevant measures under 
the National Rural Development Programme are launched. 
 
 
New, high-profile private sector clients included Coca Cola, CEZ (the country's 
largest electrical supplier) and Petrol, related to preparation and management 
of projects for financing through the Human Resources Development Operation 
Programme. WYG Bulgaria was approved as Operational Programmes' Adviser for 
several municipalities, including the largest - Sofia Regional municipality. 
 
 
Balkans 
 
 
In Turkey and northern Cyprus there were several project wins, including four 
major projects with a total project value of EUR14.6m, involving the deployment of 
more than 100 consultants over the next four years and the establishment of 14 
project offices within clients' premises. In addition, we secured a contract to 
assist the municipalities of Istanbul, Izmir, Ankara and Bursa to effectively 
manage the socio-economic and environmental problems resulting from migration 
and to rehabilitate and reintegrate street children.  This is one of the largest 
EU-funded technical assistance projects in Turkey with a value of EUR8.1m. 
 
 
Furthermore, we secured a EUR2.7m contract to establish Reception Centres for 
Asylum Seekers and Refugees and Removal Centres for Illegal Immigrants in seven 
Turkish cities.  This is one of the larger EU-funded architectural design 
projects in the country. In northern Cyprus, the year saw the start of a 
four-year, EUR2m assignment to support rural development and a project to provide 
publicity and promote awareness of the European Union amongst the Turkish 
Cypriot community. 
 
 
The Western Balkans remains a core market with the region receiving extensive 
allocations of financial support under the EU Instrument for Pre Accession 
Assistance (IPA).  In late 2008 the first allocations for IPA 2007 and 2008 came 
on-stream for four of the seven Western Balkans territories (Croatia, Serbia, 
Kosovo, Bosnia and Herzegovina) and the remaining three (Albania, Macedonia, 
Montenegro) were released in late 2009. 
 
 
Substantial pipelines of projects have been identified for the next 12-18 
months, with strong prospects for continuation over the next 3-5 years. Whilst 
to date the focus of active procurement has been in the socio-economic sector, 
there are also many technical projects in the pipeline which we will be 
pursuing. New wins include a EUR5m project to support Regional Development 
Agencies in Serbia and a EUR1.3m education project in Montenegro to set up a 
national qualifications framework. New investments include the establishment of 
a representative office in Serbia, and the appointment of an additional two 
country representatives to support business development across the region. 
 
 
Commonwealth of Independent States (CIS - former Soviet Union) 
 
 
The CIS remained a core business region for us and in the period saw several new 
projects secured with a total value of EUR13.4m, including two of around EUR5m each 
in Ukraine covering assistance with the World Trade Organisation (WTO) accession 
and reform of the judiciary. Additional wins included a prestigious regional 
Water Governance project in Central Asia and the organisation of a business 
registration "One Stop Shop" in Tajikistan. 
 
 
Diversification away from the EU was achieved by winning a World Bank financial 
reform project in Tajikistan and a project in Uzbekistan for preparation and 
preliminary design of a major water and wastewater sector loan for the Asian 
Development Bank. 
 
 
Further diversification into technical services will be actively pursued in the 
coming year, particularly in Kazakhstan, where WYG Kazakhstan has been 
registered as a legal entity and a company office opened staffed by an 
experienced Associate Director. Plans for the formal registration of WYG Ukraine 
were commenced and will be completed next year. 
 
 
Middle East and Africa (MEA) 
 
 
The Middle East and Africa region continued to grow with total revenues close to 
EUR10m. In the technical services field these projects included a EUR10m integrated 
transport policy and implementation project in Algeria, a project to strengthen 
the capacity of the energy and power sector in the Congo (generating revenues of 
EUR 660k pa), and a EUR3.75m project management services contract with EIB to manage 
the design, procurement and implementation of a EUR90m water and sanitation 
project in Damascus, Syria. 
 
 
Socio-economic projects included a new EUR9.7m assignment providing advice and 
support to regional institutions in the Africa-Pacific-Caribbean (ACP) on 
migration, a project to support provincial development plans in the Eastern Cape 
province in South Africa (generating EUR1.47m revenues/pa) and a EUR20m programme 
aimed at improving the business environment / climate in ACP countries. 
 
 
Our new MEA team was assembled to target a significant (EUR189m) pipeline of 
opportunities in the next year and beyond. 
 
 
Gulf 
 
 
In the Gulf, WYG Engineering opened during the year, a branch office in Abu 
Dhabi which the Company are using as its spearhead into this region. 
 
 
People 
 
 
At the end of June 2009 we employed 2,768 people compared to 3,468 people 12 
months ago. 
 
 
In the face of global economic recession and the changing needs of our clients, 
during the past year we have stated our three part strategy. This involves the 
streamlining of our business operations and creating 'centres of excellence'. As 
a result, we have undergone extensive restructuring which regrettably has meant 
the loss of around 700 people across the Group and around a further 100 full 
time equivalent reductions by introducing part-time working opportunities. The 
job losses were undertaken only as a last resort when all other actions had been 
considered or instigated in mitigation of redundancy. In some areas of the 
Group, where it was commercially feasible to do so, we have been able to save 
jobs by accommodating increased flexible working practices, operating 
recruitment restrictions and reducing basic salaries. We thank our people for 
working with our business leaders in this regard. 
 
 
None of the above actions alter our commitment to retain, engage and develop our 
people - the lifeblood of our business. During the year we continued to deliver 
on this promise by embedding our 'People First' approach and equipping our 
people with a range of best practice tools to ensure that they can flourish, 
whilst continuing to deliver quality services to our clients. 
 
 
The 'People First' approach involves the Group wide implementation of: 
  *  defined job families for consulting, business services and leadership 
  *  career ladders within each defined job family showing a clear path for 
  progression 
  *  generic job profiles to underpin the career ladders and personal development 
  plans of our people 
  *  the WYG Competency Framework which identifies the critical skills and behaviours 
  needed to deliver the corporate brand values of being dependable, imaginative 
  and purposeful 
  *  new staff appraisal formats incorporating the WYG Competency Framework 
 
 
 
A key concept of 'Quality Partner' has also been introduced across the Group, 
which utilises the 'People First' toolkit and links it to the ongoing 
transformation of White Young Green plc as a discipline-led business. It is the 
Quality Partner's remit to ensure that consistency of high quality service 
continues to be delivered across all our offerings aimed at securing even more 
repeat business and building on the already strong reputation of the Group. The 
link between consistent 'best in class' service delivery leading to high levels 
of client satisfaction and improved employee motivation underpins our rationale 
to promote the 'Quality Partner' concept. 
 
 
Protecting the intellectual property that our people bring to our clients and 
their projects continues to be the focus of all our people strategies as we 
remain alert to the existence of the war for talent. Continuing with this 
analogy, our defences remain strong. In the interest of modernising our people 
management approach and in order to deal compassionately with the challenges 
flowing out of our restructuring programme, our operational HR team was 
bolstered in the year by the recruitment of two additional, professionally 
qualified HR people. The new recruits joined their operational colleagues to 
assist our business leaders in the delivery of our people management 
interventions, harnessing complete dedication and support from all our areas of 
the business to ensure that our people feel engaged and supported in the face of 
widespread change. 
 
 
In the graduate market place, whilst our intake for new graduates has reduced 
since last year, we have taken the decision to continue with our formal Graduate 
Development Programme (GDP) in order to maintain the excellent reputation we 
have created as a graduate employer in our sector. This includes enhancements to 
our existing programmes encompassing organised networking and CPD events, 
Executive Director work-shadowing days and investment of both time and resources 
in the development of the Graduate Forum - a web-based communication tool 
accessed by our graduates at any given time from any White Young Green plc 
location. Graduates continue to be supported by rotation programmes on a bespoke 
basis enabling them to trial a range of disciplines to ensure the right long 
term career choices are made. Throughout the programme, advice and guidance is 
provided by mentors, coaches and a dedicated graduate support team. In addition 
there is a range of self-directed learning opportunities together with 
structured, on the job training to equip our trainees with the technical, 
interpersonal, organisational and leadership skills needed for future careers 
success in White Young Green plc. We are pleased that candidates from 'the Big 
Idea' programme have been able to secure positions in the Group. One of these 
graduates is currently experiencing life in Abu Dhabi and forging her 
international career in the process. 
 
 
The Company has accredited learning and development agreements with the 
following professional bodies: the Institution of Civil Engineers, Chartered 
Institution of Building Services Engineers, Institution of Engineers' Ireland, 
Royal Institution of Chartered Surveyors and Chartered Institution of Water and 
Environmental Management. WYG is also a recognised learning partner of the Royal 
Town Planning Institute and continues working towards accreditation with many 
others. 
 
 
We continue to invest appropriately in the development of our leaders and 
provide professional development support by modular and personal leadership 
development programmes to meet the succession needs of the business. Following 
successful evaluation of 2008/09 programmes, we have committed to continue the 
support for our business leaders for the coming year, incorporating the need to 
deliver our three part business strategy for the coming period and to take our 
people with us on that journey. 
 
 
Learning and development has always played an important role across the business 
and continues to play a high profile this year as part of the ongoing commitment 
to helping our people fulfil their potential and improve job satisfaction. Our 
Learning and Development team has been extremely active in developing as many 
internal training solutions as possible in the prevailing economic climate and 
has played a key role in promoting knowledge sharing and knowledge management 
across the Group. 
 
 
 
 
 
CONSOLIDATED INCOME STATEMENT 
For the year ended 30 June 2009 
 
 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      | Before      |              |           | Before      |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      | exceptional | Exceptional  |           | exceptional | Exceptional |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      | Note | and other   | and other    | Total     | and         | and         | Total     | 
|                      |      | items       | items        |           | other       | other       |           | 
|                      |      |             |              |           | items       | items       |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      | 2009        | 2009         | 2009      | 2008        | 2008        | 2008      | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      | GBP'000     | GBP'000      | GBP'000   | GBP'000     | GBP'000     | GBP'000   | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Continuing           |      |             |              |           |             |             |           | 
| operations           |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Revenue              | 4    | 261,629     | -            | 261,629   | 282,108     | -           | 282,108   | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Operating expenses   |      | (244,649)   | (140,634)    | (385,283) | (255,712)   | (4,194)     | (259,906) | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Operating            |      | 16,980      | (140,634)    | (123,654) | 26,396      | (4,194)     | 22,202    | 
| (loss)/profit        |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Finance costs        | 5    | (4,868)     | (374)        | (5,242)   | (5,354)     | -           | (5,354)   | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| (Loss)/profit before |      | 12,112      | (141,008)    | (128,896) | 21,042      | (4,194)     | 16,848    | 
| tax                  |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Tax credit /         | 7    | (2,912)     | 3,466        | 554       | (4,969)     | 2,558       | (2,411)   | 
| (charge)             |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| (Loss)/profit        |      | 9,200       | (137,542)    | (128,342) | 16,073      | (1,636)     | 14,437    | 
| attributable to      |      |             |              |           |             |             |           | 
| equity shareholders  |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| (Loss)/earnings per  | 8    |             |              |           |             |             |           | 
| share                |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Basic                |      | 17.6p       | (263.6p)     | (246.0p)  | 31.6p       | (3.2p)      | 28.4p     | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Diluted              |      | 17.7p       | (264.1p)     | (246.4p)  | 30.4p       | (3.1p)      | 27.3p     | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Dividend per share   | 9    |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Interim - proposed   |      | -           | -            | -         | 3.2p        | -           | 3.2p      | 
| and paid             |      |             |              |           |             |             |           | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Final - proposed     |      | -           | -            | -         | 6.3p        | -           | 6.3p      | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
|                      |      | -           | -            | -         | 9.5p        | -           | 9.5p      | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
| Paid                 |      | 6.3p        | -            | 6.3p      | 8.6p        | -           | 8.6p      | 
+----------------------+------+-------------+--------------+-----------+-------------+-------------+-----------+ 
 
 
 
 
Details of exceptional and other items are given in note 6. 
 
 
The accompanying notes to the Accounts are an integral part of this consolidated 
income statement. 
 
 
 
 
 
CONSOLIDATED BALANCE SHEET 
As at 30 June 2009 
 
 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               |       |                             | 
+-----------------------------------------------+-------+-----------------------------+ 
|                                               |       | 2009         | 2008         | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               | Note  | GBP'000      | GBP'000      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Non-current assets                            |       |              |              | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Goodwill                                      | 10    | 43,472       | 115,625      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Other intangible assets                       |       | 12,699       | 15,203       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Property, plant and equipment                 |       | 13,854       | 14,517       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Investments                                   |       | -            | -            | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Deferred tax assets                           |       | 275          | 1,933        | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Derivative financial instruments              |       | 13           | 506          | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               |       | 70,313       | 147,784      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Current assets                                |       |              |              | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Work in progress                              | 11    | 41,189       | 48,041       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Trade and other receivables                   | 12    | 64,076       | 81,621       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Tax recoverable                               |       | 3,919        | 2,260        | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Cash and cash equivalents                     |       | 10,896       | 17,427       | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               |       | 120,080      | 149,349      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Current liabilities                           |       |              |              | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Trade and other payables                      |       | (72,399)     | (79,977)     | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Current tax liabilities                       |       | (704)        | (1,490)      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Financial liabilities                         | 14    | (7,298)      | (1,756)      | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               |       | (80,401)     | (83,223)     | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Net current assets                            |       | 39,679       | 66,126       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Non-current liabilities                       |       |              |              | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Financial liabilities                         | 14    | (88,946)     | (83,874)     | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Retirement benefit obligation                 |       | (4,126)      | (1,843)      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Deferred tax liabilities                      |       | (3,586)      | (4,127)      | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Provisions, liabilities and other charges     | 13    | (30,056)     | (3,680)      | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               |       | (126,714)    | (93,524)     | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Net (liabilities)/assets                      |       | (16,722)     | 120,386      | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                               |       |              |              | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Shareholders' equity                          |       |              |              | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Share capital                                 |       | 2,648        | 2,583        | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Share premium account                         |       | 22,324       | 21,614       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Merger reserve                                |       | 17,900       | 51,599       | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Hedging and translation reserve               |       | 2,985        | 5,616        | 
+-----------------------------------------------+-------+--------------+--------------+ 
| Retained earnings                             |       | (62,579)     | 38,974       | 
+-----------------------------------------------+-------+--------------+--------------+ 
|                                                       | (16,722)     | 120,386      | 
+-----------------------------------------------+-------+--------------+--------------+ 
 
 
The accompanying notes to the Accounts are an integral part of this consolidated 
balance sheet. 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT 
For the year ended 30 June 2009 
 
 
+-----------------------------------------+------+----------+----------+ 
|                                         |      |                     | 
+-----------------------------------------+------+---------------------+ 
|                                         |      | 2009     | 2008     | 
+-----------------------------------------+------+----------+----------+ 
|                                         |      | GBP'000  | GBP'000  | 
+-----------------------------------------+------+----------+----------+ 
| Operating activities (note 16)          |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Cash generated from/(used in)           |      | 12,454   | 30,998   | 
| operations                              |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Interest paid                           |      | (5,322)  | (5,304)  | 
+-----------------------------------------+------+----------+----------+ 
| Tax paid                                |      | (435)    | (4,833)  | 
+-----------------------------------------+------+----------+----------+ 
| Net cash generated from/(used in)       |      | 6,697    | 20,861   | 
| operating activities                    |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
|                                         |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Investing activities                    |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Proceeds on disposal of property, plant |      | 671      | 4,247    | 
| and equipment                           |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Purchases of property, plant and        |      | (6,372)  | (6,476)  | 
| equipment                               |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Purchases of businesses in prior and    |      | (7,985)  | (29,538) | 
| current years                           |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Purchases of intangible assets          |      | (989)    | (1,409)  | 
| (computer software)                     |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Cash balances acquired with businesses  |      | -        | 1,643    | 
+-----------------------------------------+------+----------+----------+ 
| Dividends received                      |      | -        | -        | 
+-----------------------------------------+------+----------+----------+ 
| Net cash (used in)/generated from       |      | (14,675) | (31,533) | 
| investing activities                    |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
|                                         |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Financing activities                    |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Net proceeds on issue of ordinary share |      | 775      | 192      | 
| capital                                 |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Equity dividends paid                   |      | (3,251)  | (4,364)  | 
+-----------------------------------------+------+----------+----------+ 
| Repayments of borrowings                |      | (94,341) | (1,242)  | 
+-----------------------------------------+------+----------+----------+ 
| Draw down of loan facilities            |      | 94,605   | 31,665   | 
+-----------------------------------------+------+----------+----------+ 
| Repayments of obligations under finance |      | (1,627)  | (6,519)  | 
| leases                                  |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Purchase of own shares for Employee     |      | (776)    | (622)    | 
| Benefit Trust                           |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Net cash generated from/(used in)       |      | (4,615)  | 19,110   | 
| financing activities                    |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
|                                         |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Net (decrease)/increase in cash and     |      | (12,593) | 8,438    | 
| cash equivalents                        |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Cash and cash equivalents at beginning  |      | 17,042   | 8,604    | 
| of year                                 |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
| Cash and cash equivalents at end of     |      | 4,449    | 17,042   | 
| year                                    |      |          |          | 
+-----------------------------------------+------+----------+----------+ 
 
 
The accompanying notes to the Accounts are an integral part of this consolidated 
cash flow statement. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE 
 
 
+--------------------------------------------+-----------+---------+ 
|                                            |                     | 
+--------------------------------------------+---------------------+ 
|                                            | 2009      | 2008    | 
+--------------------------------------------+-----------+---------+ 
|                                            | GBP'000   | GBP'000 | 
+--------------------------------------------+-----------+---------+ 
| (Loss)/profit attributable to equity       | (128,342) | 14,437  | 
| shareholders                               |           |         | 
+--------------------------------------------+-----------+---------+ 
| Net exchange adjustments offset in         | (2,138)   | 6,102   | 
| reserves net of tax                        |           |         | 
+--------------------------------------------+-----------+---------+ 
| Actuarial (losses)/gains on defined        | (1,449)   | 584     | 
| benefit pension schemes                    |           |         | 
+--------------------------------------------+-----------+---------+ 
| (Losses)/gains on cash flow hedges         | (493)     | 201     | 
+--------------------------------------------+-----------+---------+ 
| Tax on items taken directly to equity      | 214       | (525)   | 
+--------------------------------------------+-----------+---------+ 
| Total recognised income and expense for    | (132,208) | 20,799  | 
| the year                                   |           |         | 
+--------------------------------------------+-----------+---------+ 
 
 
The accompanying notes to the Accounts are an integral part of this consolidated 
statement of recognised income and expense. 
 
 
 
 
NOTES TO THE FINAL RESULTS 
 
 
1. GENERAL INFORMATION 
 
 
White Young Green plc is incorporated and domiciled in England, the address of 
its registered office is Arndale Court, Headingley, Leeds, LS6 2UJ. The company 
is listed on the London Stock Exchange. 
 
 
The principal activity of the Group in the period under review was that of 
consultant to the built, natural and social environment. The Group's revenue 
derives from activities in Great Britain, Ireland and the Group's International 
division. 
 
 
The financial information, which comprises the Group income statement, Group 
statement of recognised income and expense, Group balance sheet, Group cash flow 
statement and related notes, is derived from the full Group financial statements 
for the year ended 30 June 2009 and does not constitute full accounts within the 
meaning of section 434 of the Companies Act 2006. This financial information has 
been agreed with the auditors for release. 
 
 
The Group Annual Report and Accounts for the year ended 30 June 2009 on which 
the auditors have given an unqualified report (but which includes emphasis of 
matter relating to going concern) and which does not contain a statement under 
section 498 of the Companies Act 2006, will be delivered to the Registrar of 
Companies in due course, and made available to shareholders from 10 November 
2009. 
 
 
2. BASIS OF PREPARATION 
 
The accounts have been prepared in accordance with International Financial 
Reporting Standards ("IFRS"), International Financial Reporting Interpretations 
Committee ("IFRIC") interpretations endorsed by the European Union ("EU") and 
those parts of the Companies Act 2006 applicable to companies reporting under 
IFRS. These accounts have been prepared under the historical cost convention 
with the exception of derivative financial instruments and share based payments 
which are recognised at fair value. The Group's accounting policies have been 
consistently applied to all the years presented, unless otherwise stated. The 
Group has adopted IFRS8, operating segments, in the current financial year. 
 
 
The preparation of accounts in conformity with generally accepted accounting 
principles requires the use of estimates and assumptions that affect the 
reported amounts of assets and liabilities at the date of the accounts and the 
reported amounts of revenues and expenses during the reporting period. Although 
these estimates are based on management's best knowledge of the amount, event or 
actions, actual results ultimately may differ from those estimates. 
 
 
The Group has recorded a category for 'exceptional and other items' in the 
income statement in 2009. In 2008, the Group did not record any exceptional 
items and the 'other items' disclosed in 2008 represented the amortisation of 
certain acquired intangible assets and research and development tax credits 
relating to prior years. These other items have been excluded from the 2009 
definition of exceptional items as they are recurring in nature. 
 
 
Exceptional items are those that are both material and non-recurring and whose 
significance is sufficient to warrant separate disclosure and identification 
within the consolidated financial statements and are disclosed within their 
relevant business segment within segmental reporting. Items that may give rise 
to classification as exceptional items include, but are not limited to, 
significant and material restructuring closures and reorganisation programmes, 
asset impairments, and the profit or losses on the closure of offices. 
 
 
3. RESTRUCTURING 
 
 
As a result of the risk of potential future covenant breaches, the Company 
announced in February 2009 that it had entered into negotiations with its main 
lenders, Lloyds Banking Group plc, Fortis Bank UK Branch and The Royal Bank of 
Scotland plc ('the Banks'). Since June 2009, the Banks have deferred testing of 
the covenants, agreed on a monthly basis. 
 
 
Since that time, the Company has been in extensive discussions with the Banks 
and has considered various means of re-balancing its capital structure and 
reducing the Company's level of net borrowings. The proposed restructuring 
involves the conversion to equity of a proportion of the Group's bank borrowings 
together with three year borrowing facilities. The Board believes that this debt 
to equity conversion and the refinanced facilities would provide a material 
strengthening of the Company's capital structure and financial position. 
 
 
This proposed restructuring comprises: 
 
 
  *  a conditional placing of new ordinary shares to the Banks in exchange for the 
  conversion of a proportion of the Company's outstanding bank borrowings. The new 
  ordinary shares subject to the placing to the Banks would represent, in 
  aggregate, approximately 60.5% of the enlarged issued share capital of the 
  Company; 
 
 
 
  *  a conditional issue of unlisted preference shares, with the Banks being issued 
  preference shares in the form of 'A' preference shares and 'B' preference 
  shares; 
 
 
 
  *  the gift by the Banks to the new employee benefit trust of the new 'B' 
  preference shares for the purpose of enabling senior executive management to 
  benefit from the new 'B' preference shares in due course; 
 
 
 
  *  the new employee benefit trust acquiring new ordinary shares as would represent 
  approximately 24.5% of the enlarged issued share capital of the company; 
 
 
 
  *  the refinanced facilities, including term debt and working capital facilities 
  and bonding facilities, that would be provided by the Banks; 
 
 
 
  *  should the restructuring be approved by shareholders, the cancellation of the 
  admission of the ordinary shares to the Official List and to trading on the 
  London Stock Exchange's market for listed securities and to apply for admission 
  to trading on AIM; and 
 
 
 
  *  as necessary, a conditional waiver of the requirements of Rule 9 of the City 
  Code on Takeovers and Mergers. 
 
 
 
As part of the proposed banking facilities the Group would be required to meet 
certain financial covenant tests which will be tested at quarterly intervals 
over the term of the facilities. 
 
 
 
 
Material uncertainties 
 
 
The heads of terms for the proposed restructuring are not legally binding 
although they have been approved by the credit committee of each Bank. Further, 
the Banks have agreed to defer testing of certain financial covenants until the 
day after the Extraordinary General Meeting relating to the proposed 
restructuring, or 14 December 2009, whichever is the earlier. 
 
 
Whilst the heads of terms have been approved by the credit committee of each 
Bank, the refinanced facilities are not currently committed and there remains 
the risk that the Banks could seek to renegotiate the agreed heads of terms or 
the proposed covenants. Should any further negotiations with the Banks prove 
unsuccessful then the Group may have insufficient liquidity shortly thereafter 
and may be unable to satisfy its existing financial covenants and/or service its 
existing borrowings. 
 
 
The provision of the refinanced banking facilities is conditional on the 
completion of the proposed restructuring (including the proposed conversion of 
part of the existing debt into equity). This requires shareholder approval at an 
Extraordinary General Meeting, by a majority of 75% of those shareholders 
attending and voting (in person or by proxy). In the event that the necessary 
approvals are not obtained and the relevant resolutions are not passed, the 
refinanced banking facilities would not be made available and the Group would be 
required to re-enter negotiations with the Banks. Should these further 
negotiations prove unsuccessful then the Group would face being unable to 
satisfy its financial covenants and/or service its existing borrowings. 
 
 
The Board has concluded that the status of the heads of terms and the conditions 
relating to the proposed restructuring, including the need for the requisite 
shareholder approval, represent material uncertainties which may cast 
significant doubt on the Group's ability to continue as a going concern. 
 
 
However, after considering these uncertainties and in light of the recent 
forecasts of the Group, the Board has a reasonable expectation that the Group 
will be successful in finalising the proposed restructuring and for this reason 
considers it to be appropriate to continue to adopt the going concern basis in 
preparing the financial statements. The financial statements do not include 
adjustments that would result if the Group was unable to continue as a going 
concern. 
 
 
4. SEGMENTAL INFORMATION 
 
 
Business segments 
IFRS 8 requires segment reporting to be based on the internal financial 
information reported to the chief operating decision maker. The group's chief 
operating decision maker is deemed to be the Executive Committee comprising Paul 
Hamer (Chief Executive Officer), David Wilton (Group Finance Director), Graham 
Olver (Group Services Director), Liz Zukowski (HR Director) and the managing 
directors of the Business Units: John Jenkins (Engineering), Neil Parison 
(International), Ray Moore (Ireland), David Crichton-Miller (Environment 
Planning Transport) and Clive Anderson (Management Services). Its primary 
responsibility is to manage the group's day to day operations and analyse 
trading performance. The group's segments are detailed below and are those 
segments reported in the group's management accounts used by the Executive 
Committee as the primary means for analysing trading performance. The Executive 
Committee assesses profit performance using profit before tax measured on a 
basis consistent with the disclosure in the group accounts. 
 
 
The Group's operations are managed and reported by Business Units as follows. 
 
 
Engineering, Management Services and Environment Planning Transport are skill 
based, operate mainly in Great Britain and address a range of different markets 
and clients. There is no material reliance on specific clients or on types of 
project and the Business Units are actively encouraged to make best use of their 
own skills whilst actively promoting, where applicable, the other skills within 
White Young Green plc, thereby maximising the opportunity to cross-sell. 
 
 
The Business Unit in Ireland, which covers both Northern Ireland and the 
Republic of Ireland, is set up to provide clients with skills in Engineering, 
Management Services and Environment, Planning and Transport. In effect, it 
replicates the organisational structure in Great Britain. 
 
 
The International Business Unit was originally established on the back of 
socio-economic service demand from major clients such as the EU, World Bank and 
the UK Department for International Development. It has established in-country 
operations in Poland, Russia, Romania, Bulgaria, Turkey, Abu-Dhabi, Kazakhstan 
and South Africa and, in addition to its traditional socio economic service, now 
provides technical services into those markets utilising the skills available 
across the rest of the White Young Green plc business. 
 
 
Segment consolidation is based on the same accounting principles as for the 
Group as a whole. Inter-segment sales are charged at prevailing market prices. 
 
The segment results for the year ended 30 June 2009 are as follows: 
 
 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
|               |             |            | Environment  |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
|               | Engineering | Management | Planning     | Ireland  | International | Eliminations | Group     | 
|               |             | Services   | Transport    |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
|               | 2009        | 2009       | 2009         | 2009     | 2009          | 2009         | 2009      | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
|               | GBP'000     | GBP'000    | GBP'000      | GBP'000  | GBP'000       | GBP'000      | GBP'000   | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Revenue       |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Gross         | 76,573      | 28,590     | 53,817       | 52,136   | 52,832        | (2,319)      | 261,629   | 
| revenue       |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Inter-segment | (415)       | (85)       | (21)         | (1,798)  | -             | 2,319        | -         | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| External      | 76,158      | 28,505     | 53,796       | 50,338   | 52,832        | -            | 261,629   | 
| gross         |             |            |              |          |               |              |           | 
| revenue       |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Operating     | 2,079       | 3,246      | 6,334        | 3,771    | 1,550         | -            | 16,980    | 
| profit        |             |            |              |          |               |              |           | 
| excluding     |             |            |              |          |               |              |           | 
| exceptional   |             |            |              |          |               |              |           | 
| and other     |             |            |              |          |               |              |           | 
| items         |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Exceptional   | (37,279)    | (7,473)    | (10,790)     | (62,692) | (22,400)      | -            | (140,634) | 
| and other     |             |            |              |          |               |              |           | 
| items         |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Operating     | (35,200)    | (4,227)    | (4,456)      | (58,921) | (20,850)      | -            | (123,654) | 
| loss          |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Finance       |             |            |              |          |               |              | (5,242)   | 
| costs         |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Loss before   |             |            |              |          |               |              | (128,896) | 
| tax           |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Tax           |             |            |              |          |               |              | 554       | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Loss          |             |            |              |          |               |              | (128,342) | 
| attributable  |             |            |              |          |               |              |           | 
| to equity     |             |            |              |          |               |              |           | 
| shareholders  |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Other         |             |            |              |          |               |              |           | 
| information   |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Additions     | 2,450       | 743        | 1,435        | 1,607    | 1,684         | -            | 7,919     | 
| to            |             |            |              |          |               |              |           | 
| property,     |             |            |              |          |               |              |           | 
| plant and     |             |            |              |          |               |              |           | 
| equipment     |             |            |              |          |               |              |           | 
| and           |             |            |              |          |               |              |           | 
| intangible    |             |            |              |          |               |              |           | 
| assets        |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
| Depreciation  | 3,144       | 1,037      | 2,063        | 2,948    | 1,314         | -            | 10,506    | 
| and           |             |            |              |          |               |              |           | 
| amortisation  |             |            |              |          |               |              |           | 
+---------------+-------------+------------+--------------+----------+---------------+--------------+-----------+ 
 
 
 
 
 
 
 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             | Engineering | Management | Environment | Ireland  | International | Eliminations | Group     | 
|             |             | Services   | Planning    |          |               |              |           | 
|             |             |            | Transport   |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             | 2009        | 2009       | 2009        | 2009     | 2009          | 2009         | 2009      | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             | GBP'000     | GBP'000    | GBP'000     | GBP'000  | GBP'000       | GBP'000      | GBP'000   | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Balance     |             |            |             |          |               |              |           | 
| sheet       |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Segment     | 27,673      | 24,531     | 48,023      | 42,701   | 43,498        | -            | 186,426   | 
| assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Unallocated |             |            |             |          |               |              | 5,427     | 
| corporate   |             |            |             |          |               |              |           | 
| assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Group       |             |            |             |          |               |              | 191,853   | 
| total       |             |            |             |          |               |              |           | 
| assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Segment     | (30,194)    | (8,270)    | (13,555)    | (22,799) | (37,969)      | -            | (112,787) | 
| liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Unallocated |             |            |             |          |               |              | (95,788)  | 
| corporate   |             |            |             |          |               |              |           | 
| liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Group       |             |            |             |          |               |              | (208,575) | 
| total       |             |            |             |          |               |              |           | 
| liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
 
 
 
 
 
 
 
 
 
The segment results for the year ended 30 June 2008 are as follows: 
 
 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
|               |             |                    | Environment  |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
|               | Engineering | ManagementServices | Planning     | Ireland | International | Eliminations | Group   | 
|               |             |                    | Transport    |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
|               | 2008        | 2008               | 2008         | 2008    | 2008          | 2008         | 2008    | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
|               | GBP'000     | GBP'000            | GBP'000      | GBP'000 | GBP'000       | GBP'000      | GBP'000 | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Revenue       |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Gross         | 97,459      | 35,373             | 55,791       | 53,646  | 45,506        | (5,667)      | 282,108 | 
| revenue       |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Inter-segment | (2,668)     | (821)              | (518)        | (1,660) | -             | 5,667        | -       | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| External      | 94,791      | 34,552             | 55,273       | 51,986  | 45,506        | -            | 282,108 | 
| net revenue   |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Operating     | 5,277       | 4,238              | 7,921        | 6,878   | 2,082         | -            | 26,396  | 
| profit        |             |                    |              |         |               |              |         | 
| excluding     |             |                    |              |         |               |              |         | 
| exceptional   |             |                    |              |         |               |              |         | 
| and other     |             |                    |              |         |               |              |         | 
| items         |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Exceptional   | (802)       | (478)              | (1,280)      | (1,506) | (128)         | -            | (4,194) | 
| and other     |             |                    |              |         |               |              |         | 
| items         |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Operating     | 4,475       | 3,760              | 6,641        | 5,372   | 1,954         | -            | 22,202  | 
| profit        |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Finance       |             |                    |              |         |               |              | (5,354) | 
| costs         |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Profit        |             |                    |              |         |               |              | 16,848  | 
| before tax    |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Tax           |             |                    |              |         |               |              | (2,411) | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Profit        |             |                    |              |         |               |              | 14,437  | 
| attributable  |             |                    |              |         |               |              |         | 
| to equity     |             |                    |              |         |               |              |         | 
| shareholders  |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Other         |             |                    |              |         |               |              |         | 
| information   |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Additions     | 5,382       | 1,553              | 3,425        | 847     | 658           |              | 11,865  | 
| to            |             |                    |              |         |               |              |         | 
| property,     |             |                    |              |         |               |              |         | 
| plant and     |             |                    |              |         |               |              |         | 
| equipment     |             |                    |              |         |               |              |         | 
| and           |             |                    |              |         |               |              |         | 
| intangible    |             |                    |              |         |               |              |         | 
| assets        |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
| Depreciation  | 3,308       | 954                | 2,105        | 2,890   | 644           | -            | 9,901   | 
| and           |             |                    |              |         |               |              |         | 
| amortisation  |             |                    |              |         |               |              |         | 
+---------------+-------------+--------------------+--------------+---------+---------------+--------------+---------+ 
 
 
 
 
 
 
 
 
 
 
 
 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             |             | Management | Environment |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             | Engineering | Services   | Planning    | Ireland  | International | Eliminations | Group     | 
|             |             |            | Transport   |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             | 2008        | 2008       | 2008        | 2008     | 2008          | 2008         | 2008      | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             | GBP'000     | GBP'000    | GBP'000     | GBP'000  | GBP'000       | GBP'000      | GBP'000   | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
|             |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Balance     |             |            |             |          |               |              |           | 
| sheet       |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Segment     | 62,876      | 33,132     | 57,673      | 91,722   | 47,526        |              | 292,929   | 
| assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Unallocated |             |            |             |          |               |              | 4,204     | 
| corporate   |             |            |             |          |               |              |           | 
| assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Group       |             |            |             |          |               |              | 297,133   | 
| total       |             |            |             |          |               |              |           | 
| assets      |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Segment     | (31,111)    | (7,596)    | (11,205)    | (14,714) | (25,952)      |              | (90,578)  | 
| liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Unallocated |             |            |             |          |               |              | (86,169)  | 
| corporate   |             |            |             |          |               |              |           | 
| liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
| Group       |             |            |             |          |               |              | (176,747) | 
| total       |             |            |             |          |               |              |           | 
| liabilities |             |            |             |          |               |              |           | 
+-------------+-------------+------------+-------------+----------+---------------+--------------+-----------+ 
 
 
  5. FINANCE COSTS 
 
 
+----------------------------------------------------------+------------+------------+ 
|                                                          | 2009       | 2008       | 
+----------------------------------------------------------+------------+------------+ 
|                                                          | GBP'000    | GBP'000    | 
+----------------------------------------------------------+------------+------------+ 
| Interest on bank loans, guarantees and overdrafts        | 4,731      | 4,593      | 
+----------------------------------------------------------+------------+------------+ 
| Interest on obligations under finance leases             | 138        | 356        | 
+----------------------------------------------------------+------------+------------+ 
| Interest on loan notes                                   | 3          | 46         | 
+----------------------------------------------------------+------------+------------+ 
| Interest on defined benefit scheme liabilities           | 370        | 359        | 
+----------------------------------------------------------+------------+------------+ 
|                                                          | 5,242      | 5,354      | 
+----------------------------------------------------------+------------+------------+ 
 
 
 
 
 
 
6. EXCEPTIONAL AND OTHER ITEMS 
 
 
+----------------------------------------------------------+------------+------------+ 
|                                                          | 2009       | 2008       | 
+----------------------------------------------------------+------------+------------+ 
|                                                          | GBP'000    | GBP'000    | 
+----------------------------------------------------------+------------+------------+ 
| Employee termination costs                               | 8,968      | -          | 
+----------------------------------------------------------+------------+------------+ 
| Office closure costs                                     | 20,602     | -          | 
+----------------------------------------------------------+------------+------------+ 
| Work in progress and trade receivables provisions        | 20,547     | -          | 
+----------------------------------------------------------+------------+------------+ 
| Professional indemnity claim provisions                  | 5,650      | -          | 
+----------------------------------------------------------+------------+------------+ 
| Professional fees                                        | 3,440      | -          | 
+----------------------------------------------------------+------------+------------+ 
| Impairment of goodwill                                   | 77,184     | -          | 
+----------------------------------------------------------+------------+------------+ 
| Other restructuring costs                                | 2,013      | -          | 
+----------------------------------------------------------+------------+------------+ 
| Finance costs                                            | 374        | -          | 
+----------------------------------------------------------+------------+------------+ 
| Exceptional items                                        | 138,778    | -          | 
+----------------------------------------------------------+------------+------------+ 
| Amortisation of acquired intangible assets               | 2,230      | 4,194      | 
+----------------------------------------------------------+------------+------------+ 
| Exceptional and other items                              | 141,008    | 4,194      | 
+----------------------------------------------------------+------------+------------+ 
 
 
 
 
White Young Green plc has incurred significant exceptional costs in the 
financial year. These exceptional costs arose predominantly from the 
restructuring of the Group, and relate to redundancies and office closure costs, 
the write down of work in progress and trade receivables balances, prospective 
offer costs, fees arising on the refinancing, the impairment of goodwill and 
other general restructuring costs. 
 
 
The Board has implemented measures to reduce headcount in the financial year. 
These headcount reductions have been across the entire Group, but concentrated 
in the Engineering and Irish Business Units. 
 
 
White Young Green plc has announced the closure of 17 regional offices in the UK 
and Republic of Ireland. A provision of GBP17.2m has been made as an exceptional 
cost in respect of vacant leasehold charges primarily made up of rent, rates and 
service charges payable by the Group over the remaining lease terms on vacated 
properties. The Group is actively seeking to sub-let these properties. In 
addition, the Group has provided GBP0.7m in respect of on-going cost obligations 
in closed locations and GBP2.7m for asset write offs. 
 
 
When the half year results were announced on 25 February 2009, the Group 
reported an exceptional charge of GBP8m in respect of a provision against work 
in progress and trade receivables following a review of such balances. At the 
year end a further review was undertaken as part of the overall review of the 
Business Unit balance sheets and the Board now considers it necessary to provide 
a further GBP12.5m in respect of such balances. This review covered all 
receivable balances and was undertaken in the context of current market 
conditions and the Group restructuring. Where appropriate, efforts will be made 
to recover as much of these balances as possible. 
 
 
The group's professional indemnity claim provision has been assessed on the 
likely scale of settlement payable by the group. The amounts classified as 
exceptional items include those costs that cover the insurance deductible 
payable on all outstanding claims. 
 
 
The Group has incurred significant professional costs in connection with the 
refinancing. These costs are treated as exceptional. 
 
 
The Group has reviewed the value of the goodwill arising upon past acquisitions 
carried on its balance sheets. Following this review, the Group has reduced the 
value of goodwill carried on the balance sheet in respect of all the Business 
Units. This impairment charge is an accounting matter and does not represent a 
cash cost. 
 
 
Amortisation of acquired intangibles was classified as 'Other items' on the 
Income Statement last year. This year it has been included in exceptional and 
'other' items. 
 
 
 
 
7. TAX 
 
 
+-------------------------------------------------------+--------------+--------------+ 
|                                                       | 2009         | 2008         | 
+-------------------------------------------------------+--------------+--------------+ 
|                                                       | GBP'000      | GBP'000      | 
+-------------------------------------------------------+--------------+--------------+ 
| Current tax:                                          |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                  UK corporation tax on profits for    | (2,206)      | 3,479        | 
|                  the year at 28% (2008: 29.5%)        |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                  Adjustments in respect of prior      | -            | (2,081)      | 
|                  years                                |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                  Overseas tax on profits for the year | 335          | 1,289        | 
+-------------------------------------------------------+--------------+--------------+ 
|                                                       | (1,871)      | 2,687        | 
+-------------------------------------------------------+--------------+--------------+ 
| Deferred tax:                                         |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                   Movement in deferred tax            | 1,317        | (276)        | 
+-------------------------------------------------------+--------------+--------------+ 
|                                                       | (554)        | 2,411        | 
+-------------------------------------------------------+--------------+--------------+ 
| Tax on items charged to equity:                       |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                   Deferred tax (charge)/credit        | (192)        | (361)        | 
|                   related to share-based payments     |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                   Deferred tax (charge)/credit        | 406          | (164)        | 
|                   related to the actuarial gains and  |              |              | 
|                   losses                              |              |              | 
|                   on retirement benefit schemes       |              |              | 
+-------------------------------------------------------+--------------+--------------+ 
|                                                       | 214          | (525)        | 
+-------------------------------------------------------+--------------+--------------+ 
Tax for other jurisdictions is calculated at the rates prevailing in the 
respective jurisdictions. 
 
 
 
 
 
Factors Affecting the Current Tax Charge for the Year 
The tax charge for the year is lower (2008: lower) than the standard rate of 
corporation tax in the UK when applied to reported profit. The differences are 
explained below: 
+-------------------------------------------------------+-------------+--------------+ 
|                                                       | 2009        | 2008         | 
+-------------------------------------------------------+-------------+--------------+ 
|                                                       | GBP'000     | GBP'000      | 
+-------------------------------------------------------+-------------+--------------+ 
| (Loss)/profit before tax                              | (128,896)   | 16,848       | 
+-------------------------------------------------------+-------------+--------------+ 
| (Loss)/profit before tax multiplied by the standard   | (36,089)    | 4,970        | 
| rate of UK corporation tax rate of 28% (2008: 29.5%)  |             |              | 
+-------------------------------------------------------+-------------+--------------+ 
| Expenses not deductible for tax purposes              | 4,563       | 290          | 
+-------------------------------------------------------+-------------+--------------+ 
| Non-deductible acquired assets amortisation           | 17,526      | 1,237        | 
+-------------------------------------------------------+-------------+--------------+ 
| Adjustments in respect of prior years                 | -           | (2,081)      | 
+-------------------------------------------------------+-------------+--------------+ 
| Enhanced expenditure                                  | (428)       | -            | 
+-------------------------------------------------------+-------------+--------------+ 
| Fixed asset timing differences                        | 781         | -            | 
+-------------------------------------------------------+-------------+--------------+ 
| Losses carried forward                                | 9,706       | -            | 
+-------------------------------------------------------+-------------+--------------+ 
| Other temporary differences                           | (306)       | (1,014)      | 
+-------------------------------------------------------+-------------+--------------+ 
| Effect of different tax rates of subsidiaries         | 2,376       | (715)        | 
| operating in other jurisdictions                      |             |              | 
+-------------------------------------------------------+-------------+--------------+ 
| Total current tax (credit)/charge                     | (1,871)     | 2,687        | 
+-------------------------------------------------------+-------------+--------------+ 
| Current year deferred tax - on amortisation of        | (505)       | (1,163)      | 
| acquired intangibles                                  |             |              | 
+-------------------------------------------------------+-------------+--------------+ 
| Current year deferred tax - other                     | 1,822       | 887          | 
+-------------------------------------------------------+-------------+--------------+ 
| Total tax (credit)/charge                             | (554)       | 2,411        | 
+-------------------------------------------------------+-------------+--------------+ 
 
 
 
8. EARNINGS PER SHARE 
 
 
The calculation of the basic and diluted earnings per share is based on the 
following data: 
+--------------------------------------------------------------+-----------+----------+ 
|                                                              | 2009      | 2008     | 
+--------------------------------------------------------------+-----------+----------+ 
|                                                              | GBP'000   | GBP'000  | 
+--------------------------------------------------------------+-----------+----------+ 
| Earnings for the purposes of basic and diluted earnings per  | (128,342) | 14,437   | 
| share being profit for the year                              |           |          | 
+--------------------------------------------------------------+-----------+----------+ 
| Adjustment relating to exceptional items                     | 137,542   | 1,636    | 
+--------------------------------------------------------------+-----------+----------+ 
| Earnings for the purposes of basic and diluted adjusted      | 9,200     | 16,073   | 
| earnings per share                                           |           |          | 
+--------------------------------------------------------------+-----------+----------+ 
 
 
+--------------------------------------------------------------+------------+------------+ 
|                                                              | 2009       | 2008       | 
+--------------------------------------------------------------+------------+------------+ 
|                                                              | Number     | Number     | 
+--------------------------------------------------------------+------------+------------+ 
| Number of shares                                             |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Weighted average number of shares for basic earnings per     | 52,169,867 | 50,902,193 | 
| share                                                        |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Effect of dilutive potential ordinary shares:                |            |            | 
+--------------------------------------------------------------+------------+------------+ 
|                   Share options                              | (92,318)   | 112,460    | 
+--------------------------------------------------------------+------------+------------+ 
|                   Shares to be issued in respect of          | -          | 1,892,929  | 
|                   acquisitions                               |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Weighted average number of shares for diluted earnings per   | 52,077,549 | 52,907,582 | 
| share                                                        |            |            | 
+--------------------------------------------------------------+------------+------------+ 
|                                                              |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Earnings per share                                           |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Basic                                                        | (246.0p)   | 28.4p      | 
+--------------------------------------------------------------+------------+------------+ 
| Diluted                                                      | (246.4p)   | 27.3p      | 
+--------------------------------------------------------------+------------+------------+ 
|                                                              |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Adjusted earnings per share                                  |            |            | 
+--------------------------------------------------------------+------------+------------+ 
| Basic                                                        | 17.6p      | 31.6p      | 
+--------------------------------------------------------------+------------+------------+ 
| Diluted                                                      | 17.7p      | 30.4p      | 
+--------------------------------------------------------------+------------+------------+ 
 
 
 
 
9. DIVIDENDS 
 
 
+-------------------------------------------------------------+----------+----------+ 
|                                                             | 2009     | 2008     | 
+-------------------------------------------------------------+----------+----------+ 
|                                                             | GBP'000  | GBP'000  | 
+-------------------------------------------------------------+----------+----------+ 
| Amounts recognised as distributions to equity holders in    |          |          | 
| the year:                                                   |          |          | 
+-------------------------------------------------------------+----------+----------+ 
| Final dividend for the year ended 30 June 2008 of 6.3p      | 3,251    | 2,713    | 
| (2007: 5.4p) per share                                      |          |          | 
+-------------------------------------------------------------+----------+----------+ 
| Interim dividend for the year ended 30 June 2009 of nil     | -        | 1,651    | 
| (2008: 3.2p) per share                                      |          |          | 
+-------------------------------------------------------------+----------+----------+ 
|                                                             | 3,251    | 4,364    | 
+-------------------------------------------------------------+----------+----------+ 
| Proposed final dividend for the year ended 30 June 2009 of  | -        | 3,251    | 
| nil (2008: 6.3p) per share                                  |          |          | 
+-------------------------------------------------------------+----------+----------+ 
 
 
  10. GOODWILL 
 
 
+--------------------------------------------------------------------------+----------+ 
|                                                                          | GBP'000  | 
+--------------------------------------------------------------------------+----------+ 
| Cost                                                                     |          | 
+--------------------------------------------------------------------------+----------+ 
| At 1 July 2007                                                           | 81,122   | 
+--------------------------------------------------------------------------+----------+ 
| Exchange differences                                                     | 4,991    | 
+--------------------------------------------------------------------------+----------+ 
| Recognised on acquisition of businesses - current year                   | 29,409   | 
+--------------------------------------------------------------------------+----------+ 
| Recognised on acquisition of businesses - prior year                     | 103      | 
+--------------------------------------------------------------------------+----------+ 
| At 1 July 2008                                                           | 115,625  | 
+--------------------------------------------------------------------------+----------+ 
| Exchange differences                                                     | 3,220    | 
+--------------------------------------------------------------------------+----------+ 
| Recognised on acquisition of businesses - prior year                     | 1,811    | 
+--------------------------------------------------------------------------+----------+ 
| At 30 June 2009                                                          | 120,656  | 
+--------------------------------------------------------------------------+----------+ 
|                                                                          |          | 
+--------------------------------------------------------------------------+----------+ 
| Accumulated impairment losses                                            |          | 
+--------------------------------------------------------------------------+----------+ 
| At 1 July 2007, 1 July 2008                                              | -        | 
+--------------------------------------------------------------------------+----------+ 
| Impairment charge                                                        | (77,184) | 
+--------------------------------------------------------------------------+----------+ 
| Accumulated impairment losses at 30 June 2009                            | (77,184) | 
+--------------------------------------------------------------------------+----------+ 
|                                                                          |          | 
+--------------------------------------------------------------------------+----------+ 
| Net book value                                                           |          | 
+--------------------------------------------------------------------------+----------+ 
| At 30 June 2009                                                          | 43,472   | 
+--------------------------------------------------------------------------+----------+ 
| At 30 June 2008                                                          | 115,625  | 
+--------------------------------------------------------------------------+----------+ 
Goodwill is tested for impairment annually and whenever there are indications 
that it may have suffered an impairment. Goodwill is considered impaired to the 
extent that its carrying amount exceeds its recoverable amount, which is the 
higher of the value in use and the fair value less costs to sell of the cash 
generating unit (CGU) to which it is allocated. In the impairment tests of 
goodwill performed in 2009, the recoverable amount was determined based on the 
value in use calculations. 
Management based the value in use calculations on cash flow forecasts derived 
from the most recent three year financial plans approved by the Board, including 
certain sensitivities in which the principal assumptions were those regarding 
sales growth and changes in direct costs. 
Cash flows for the years beyond the three year financial plans for the CGUs to 
which significant amounts of goodwill were allocated were calculated as follows: 
cashflows in the fourth and fifth years and those thereafter were projected to 
grow at 2% per annum which does not exceed the long term growth rates in the 
principal end markets in the UK, Republic of Ireland and Europe. 
Management applied discount rates to the resulting cashflow projections that 
reflect current market assessments of the time. Pre tax discount rates used in 
the annual impairment were 14% 
During the financial period, impairments totalling GBP77,184,000 were recognised 
in relation to the goodwill allocated across all CGUs. 
In all CGUs there has been a deterioration in the markets which caused the 
impairment of GBP14,421,000 in International, GBP17,423,000 in Engineering, 
GBP2,592,000 in EPT, GBP2,394,000 in Management Services and GBP40,354,000 in 
Ireland. 
Management has assessed the sensitivity of the recoverable amounts to key 
assumptions to be as follows: a one percentage point increase in the pre-tax 
discount rate of 14% would reduce the recoverable amount by GBP6.2m; a one 
percentage point fall in operating margin across all BUs would reduce the 
recoverable amount by GBP17.1m; and a one percentage point fall in the assumed 
long term growth rate of 2% would reduce the recoverable amount by GBP4.5m. 
 
11. WORK-IN-PROGRESS 
 
 
+-------------------------------------------------------------+-------------------------+------------------------+ 
|                                                             |                                                  | 
+-------------------------------------------------------------+--------------------------------------------------+ 
|                                                             | 2009                    | 2008                   | 
+-------------------------------------------------------------+-------------------------+------------------------+ 
|                                                             | GBP000                 | GBP000                | 
+-------------------------------------------------------------+-------------------------+------------------------+ 
| Work-in-progress                                            | 55,255                  | 48,751                 | 
+-------------------------------------------------------------+-------------------------+------------------------+ 
| Provision                                                   | (14,066)                | (710)                  | 
+-------------------------------------------------------------+-------------------------+------------------------+ 
| Net work-in-progress                                        | 41,189                  | 48,041                 | 
+-------------------------------------------------------------+-------------------------+------------------------+ 
 
The value of work in progress comprises the costs incurred on a contract plus an 
appropriate proportion of overheads and attributable profit. Profit is 
recognised on a percentage completion basis when the outcome of a contract or 
project can be reasonably foreseen. Provision is made in full for estimated 
losses. 
 
 
12. TRADE AND OTHER RECEIVABLES 
 
 
+----------------------------------------------+-------------------+------------------+ 
|                                              |                                      | 
+----------------------------------------------+--------------------------------------+ 
|                                              | 2009              | 2008             | 
+----------------------------------------------+-------------------+------------------+ 
|                                              | GBP'000           | GBP'000          | 
+----------------------------------------------+-------------------+------------------+ 
| Amounts falling due within one year          |                   |                  | 
+----------------------------------------------+-------------------+------------------+ 
| Amounts receivable on contracts              | 66,627            | 76,897           | 
+----------------------------------------------+-------------------+------------------+ 
| Less: provision for impairment of trade      | (9,178)           | (3,486)          | 
| receivables                                  |                   |                  | 
+----------------------------------------------+-------------------+------------------+ 
| Trade receivables - net                      | 57,449            | 73,411           | 
+----------------------------------------------+-------------------+------------------+ 
| Prepayments and accrued income               | 3,896             | 4,621            | 
+----------------------------------------------+-------------------+------------------+ 
| Amounts owed by subsidiary undertakings      | -                 | -                | 
+----------------------------------------------+-------------------+------------------+ 
| Other receivables                            | 2,731             | 3,589            | 
+----------------------------------------------+-------------------+------------------+ 
|                                              | 64,076            | 81,621           | 
+----------------------------------------------+-------------------+------------------+ 
 
 
 
13. PROVISIONS, LIABILITIES AND OTHER CHARGES 
 
 
+-----------------------------------------+----------+------------+-----------+----------+ 
|                                         |                                              | 
+-----------------------------------------+----------------------------------------------+ 
|                                         | Claims   | Redundancy | Vacant    | Total    | 
|                                         |          |            | Leasehold |          | 
+-----------------------------------------+----------+------------+-----------+----------+ 
|                                         | GBP'000  | GBP'000    | GBP'000   | GBP'000  | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| At June 2007                            | 2,785    | -          | -         | 2,785    | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| Additional provisions                   | 1,896    | -          | -         | 1,896    | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| Utilised during the year                | (1,001)  | -          | -         | (1,001)  | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| At June 2008                            | 3,680    | -          | -         | 3,680    | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| Additional provisions                   | 8,626    | 8,968      | 17,210    | 34,804   | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| Utilised during the year                | (2,731)  | (5,697)    | -         | (8,428)  | 
+-----------------------------------------+----------+------------+-----------+----------+ 
| At June 2009                            | 9,575    | 3,271      | 17,210    | 30,056   | 
+-----------------------------------------+----------+------------+-----------+----------+ 
 
 
Professional indemnity claims 
Provisions are made for current and estimated obligations in respect of claims 
made by contractors and the general public relating to accident or other 
insurable risks as a result of the business activities of the Group. These 
include claims held by the Group's captive insurance company, Oakdale Insurance 
Company Limited. In the prior year accounts the provision for professional 
indemnity claims was presented within accruals as the liability was not 
considered significant for separate disclosure. 
 
 
Redundancy 
Provision is made for current estimated future costs of redundancy and ex gratia 
payments to be made where this has been communicated to those employees 
concerned. 
 
 
Vacant properties 
The group has a number of vacant leasehold properties, with the majority of the 
head leases expiring within the next five years. Provision has been made for the 
residual lease commitments together with other outgoings, after taking into 
account potential sub-tenant arrangements and assumptions relating to later 
periods of vacancy. 
 
 
 
 
14. FINANCIAL LIABILITIES 
 
 
+-------------------------------------------------+------------------+-----------------+ 
|                                                 |                                    | 
+-------------------------------------------------+------------------------------------+ 
|                                                 | 2009             | 2008            | 
+-------------------------------------------------+------------------+-----------------+ 
|                                                 | GBP'000          | GBP'000         | 
+-------------------------------------------------+------------------+-----------------+ 
| Current                                         |                  |                 | 
+-------------------------------------------------+------------------+-----------------+ 
| Bank overdrafts                                 | 6,447            | 385             | 
+-------------------------------------------------+------------------+-----------------+ 
| Obligations under finance leases                | 851              | 1,131           | 
+-------------------------------------------------+------------------+-----------------+ 
| Loan notes                                      | -                | 240             | 
+-------------------------------------------------+------------------+-----------------+ 
|                                                 | 7,298            | 1,756           | 
+-------------------------------------------------+------------------+-----------------+ 
| Non-current                                     |                  |                 | 
+-------------------------------------------------+------------------+-----------------+ 
| Bank loans                                      | 88,485           | 82,592          | 
+-------------------------------------------------+------------------+-----------------+ 
| Obligations under finance leases                | 461              | 1,282           | 
+-------------------------------------------------+------------------+-----------------+ 
|                                                 | 88,946           | 83,874          | 
+-------------------------------------------------+------------------+-----------------+ 
|                                                 |                  |                 | 
+-------------------------------------------------+------------------+-----------------+ 
| Financial liabilities are repayable as follows: |                  |                 | 
+-------------------------------------------------+------------------+-----------------+ 
| On demand or within one year                    | 7,298            | 1,756           | 
+-------------------------------------------------+------------------+-----------------+ 
| In the second year                              | 431              | 807             | 
+-------------------------------------------------+------------------+-----------------+ 
| In the third to fifth years inclusive           | 88,515           | 83,067          | 
+-------------------------------------------------+------------------+-----------------+ 
|                                                 | 96,244           | 85,630          | 
+-------------------------------------------------+------------------+-----------------+ 
 
 
 
15. STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 
 
 
+----------------------------------------------------------+------------+------------+ 
|                                                          |                         | 
+----------------------------------------------------------+-------------------------+ 
|                                                          | 2009       | 2008       | 
+----------------------------------------------------------+------------+------------+ 
|                                                          | GBP'000    | GBP'000    | 
+----------------------------------------------------------+------------+------------+ 
| (Loss)/profit attributable to equity shareholders        | (128,342)  | 14,437     | 
+----------------------------------------------------------+------------+------------+ 
| Net exchange adjustments offset in reserves net of tax   | (2,138)    | 6,102      | 
+----------------------------------------------------------+------------+------------+ 
| Actuarial (losses)/gains on defined benefit pension      | (1,449)    | 584        | 
| schemes                                                  |            |            | 
+----------------------------------------------------------+------------+------------+ 
| (Loss)/gains on cash flow hedges                         | (493)      | 201        | 
+----------------------------------------------------------+------------+------------+ 
| Share-based payments                                     | (2,424)    | (242)      | 
+----------------------------------------------------------+------------+------------+ 
| New share capital issued, net of expenses                | 775        | 15,264     | 
+----------------------------------------------------------+------------+------------+ 
| Tax on items taken directly to equity                    | 214        | (525)      | 
+----------------------------------------------------------+------------+------------+ 
| Equity dividends paid                                    | (3,251)    | (4,364)    | 
+----------------------------------------------------------+------------+------------+ 
| Net (reduction from)/addition to shareholders' equity    | (137,108)  | 31,457     | 
+----------------------------------------------------------+------------+------------+ 
| Equity attributable to equity shareholders at beginning  | 120,386    | 88,929     | 
| of year                                                  |            |            | 
+----------------------------------------------------------+------------+------------+ 
| (Deficit)/equity attributable to equity shareholders at  | (16,722)   | 120,386    | 
| end of year                                              |            |            | 
+----------------------------------------------------------+------------+------------+ 
 
 
 
16. CASH GENERATED FROM OPERATIONS 
 
 
+--------------------------------------------+-----------+---------+ 
|                                            |                     | 
+--------------------------------------------+---------------------+ 
|                                            | 2009      | 2008    | 
+--------------------------------------------+-----------+---------+ 
|                                            | GBP'000   | GBP'000 | 
+--------------------------------------------+-----------+---------+ 
| (Loss)/profit from operations              | (123,654) | 22,202  | 
+--------------------------------------------+-----------+---------+ 
| Adjustments for:                           |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Depreciation of          | 6,977     | 4,652   | 
|                   property, plant and      |           |         | 
|                   equipment                |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Amortisation of          | 3,529     | 5,249   | 
|                   intangible assets        |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Impairment of            | 77,184    | -       | 
|                   goodwill/investments     |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   (Profit)/loss on         | 201       | (858)   | 
|                   disposal of property,    |           |         | 
|                   plant and equipment      |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Share options            | (1,648)   | 1,214   | 
|                   (credit)/charge          |           |         | 
+--------------------------------------------+-----------+---------+ 
| Operating cash flows before movements in   | (37,411)  | 32,459  | 
| working capital                            |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Decrease/(increase) in   | 8,818     | (4,666) | 
|                   inventories              |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Decrease/(increase) in   | 22,267    | (5,648) | 
|                   receivables              |           |         | 
+--------------------------------------------+-----------+---------+ 
|                   Increase in payables     | 18,780    | 8,853   | 
+--------------------------------------------+-----------+---------+ 
| Cash generated from/(used in) operations   | 12,454    | 30,998  | 
+--------------------------------------------+-----------+---------+ 
| Interest paid                              | (5,322)   | (5,304) | 
+--------------------------------------------+-----------+---------+ 
| Tax paid                                   | (435)     | (4,833) | 
+--------------------------------------------+-----------+---------+ 
| Net cash generated from/(used in)          | 6,697     | 20,861  | 
| operating activities                       |           |         | 
+--------------------------------------------+-----------+---------+ 
 
 
 
17. ANALYSIS OF CHANGES IN NET DEBT 
 
 
+--------------------------------+----------+----------+--------------+----------+----------+ 
|                                | At       |          |              | Other    | At       | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
|                                | 1 July   | Cash     |              | non-cash | 30 June  | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
|                                | 2008     | flows    | Acquisitions | items    | 2009     | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
|                                | GBP'000  | GBP'000  | GBP'000      | GBP'000  | GBP'000  | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
| Cash and cash equivalents      | 17,427   | (6,531)  | -            | -        | 10,896   | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
| Bank overdrafts                | (385)    | (6,062)  | -            | -        | (6,447)  | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
| Bank loans due after one year  | (82,592) | (504)    | -            | (5,389)  | (88,485) | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
| Loan notes due within one year | (240)    | 240      | -            | -        | -        | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
| Finance leases and hire        | (2,413)  | 1,627    | -            | (526)    | (1,312)  | 
| purchase contracts             |          |          |              |          |          | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
|                                | (68,203) | (11,230) | -            | (5,915)  | (85,348) | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
| Add back cash in restricted    | (3,412)  | 52       | -            | -        | (3,360)  | 
| access accounts                |          |          |              |          |          | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
|                                | (71,615) | (11,178) | -            | (5,915)  | (88,708) | 
+--------------------------------+----------+----------+--------------+----------+----------+ 
The net debt has been restated to show the Oakdale and restricted WYG 
International balances. 
Other non-cash movements represent currency exchange differences and finance 
lease creditor movements. 
 
 
18. RELATED PARTY TRANSACTIONS 
 
 
There have been no changes in the nature of related party transactions as 
described in the 2008 Annual Report and Accounts and there have been no new 
related party transactions disclosed in the 2009 Annual Report and Accounts 
which have had a material effect on the financial position or performance of the 
group in the year ended 30 June 2009. 
 
 
 
 
STATEMENT OF DIRECTORS' RESPONSIBILITIES 
In accordance with Rule 4.1.12 of the Disclosure and Transparency Rules, the 
following responsibility statement is given by each of the directors: namely 
Mike McTighe, Non Executive Chairman; Paul Hamer, Chief Executive Officer; David 
Wilton, Group Finance Director; Graham Olver, Group Services Director and 
Company Secretary; Robert Barr, Non Executive Director and John Richardson, Non 
Executive Director. The directors are responsible for preparing the Annual 
Report, the Directors' Remuneration Report and the accounts in accordance with 
applicable law and regulations. 
Company law requires the directors to prepare accounts for each financial year. 
Under that law the directors have prepared the Group and Parent Company accounts 
in accordance with International Financial Reporting Standards ("IFRS") as 
adopted by the European Union. Under Company law the directors must not approve 
the accounts unless they are satisfied that they give a true and fair view of 
the state of affairs of the Company and the Group and of the profit or loss of 
the Group for that period. 
In preparing those accounts, the directors are required to: 
-        select suitable accounting policies and then apply them consistently; 
-        make judgements and estimates that are reasonable and prudent; 
-        state whether applicable IFRSs as adopted by the European Union have 
been followed, subject to any material departures disclosed and explained in the 
accounts; and 
-        prepare the accounts on the going concern basis, unless it is 
inappropriate to presume that the Group will continue in business. 
Each of the directors, whose names and functions are listed above, confirm that 
to the best of their knowledge, the Group financial statements, prepared in 
accordance with IFRS as adopted by the European Union, give a true and fair view 
of the assets, liabilities, financial position and profit of the Group; and the 
Directors' Report includes a fair review of the development and performance of 
the business and the position of the Group, together with a description of the 
principal risks and uncertainties that it faces. 
The directors are responsible for keeping adequate accounting records that are 
sufficient to show and explain the Company's transactions and disclose with 
reasonable accuracy at any time the financial position of the Company and the 
Group and to enable them to ensure that the accounts and the Directors' 
Remuneration Report comply with the Companies Act 2006 and, as regards the Group 
accounts, Article 4 of the IAS Regulation. They are also responsible for 
safeguarding the assets of the Company and the Group and hence for taking 
reasonable steps for the prevention and detection of fraud and other 
irregularities. 
The Annual Report and Accounts will be published on the Group's website. The 
maintenance and integrity of the Group's website is the responsibility of the 
directors. The work carried out by the auditors does not include consideration 
of these matters. Legislation in the UK governing the preparation and 
dissemination of accounts may differ from legislation in other jurisdictions. 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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