WSP trims staff and reorganises at cost of £4m

WSP, the global consultancy group, trimmed back its operations in the UK and Middle East at a cost of £4m in order to match size with a reduced demand from clients.

In a trading update this morning, WSP said: “We are hopeful that further action will only need to be limited.”

Following the end of the first quarter's trading, WSP said that trading is in line with expectations but the markets remain uncertain. “The private property sector around the world continues to be challenging, although the public sector continues to show resilience,” it noted.

“Our substantial European operations which predominantly work in the public and regulated markets continue to trade well.

“In the UK, our transport and infrastructure business is benefiting from last year's major contract wins. Our US business is also gaining new work and trading well.

“The wider Middle East region continues to present project opportunities, although funding issues in Dubai remain unresolved and activity in that market is reduced.

“We expect our increasing prominence in the environmental and energy global markets will create new business opportunities to offset the challenges it faces in the private property sector.”

The level of bank debt has increased since the year-end. This, in part, is the result of slower payments by clients.