White Young Green's interim results show pre-tax profit of £5.3m

White Young Green, the rapidly growing consultancy group, has unveiled an interim pre-tax profit of £5.3m.

The figure would have been £1.6m higher but for the amortisation cost of the goodwill triggered by WYG’s string of recent acquisitions.

Turnover (six months to 31 December 2006) of £100m was well ahead of the figure of £80m in the comparable period of the previous year when pre-tax profit was also £5.3m.

John Purvis, chief executive, said: “I am delighted to report an excellent set of results. The acquisitions completed in the second half of the last financial year have all contributed strongly, in line with expectations, and their integration is progressing well.”

Organic growth ran to a figure of 11% (comparable figure for 2005: 10%). Purvis pointed out that the operating margin rose faster than turnover did, indicating a move towards a more profitable business mix.

Net debt stood at £43m at the end of the period, well up on the figure of £18m at the end of 2005, resulting in a gearing (i.e. ratio of debt to assets) of 52% (2005: 32%).

WYG raised its borrowing facility this month, the result being that the upper limit has been increased from £52m to £100m and with an extension to February 2012. This extra cover will support the financing of the cash element of future acquisitions and the provision of additional working capital as WYG continues to grow, said Purvis.

The four acquisitions made since July 2006 cost £17m. They will lift annual turnover by £13m in total.