WSP signs new credit facility

Engineering consultant WSP announced it has signed a new credit facility as trading for the year ending 31 December 2011 continues in line with company forecasts.

The current £150m facility, due to expire in May 2013, will be replaced by a 4-year £152.5m facility, expiring in December 2015.

"The board considers this an excellent outcome in a difficult financing market and it leaves the group securely financed for the future," it said.

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Commenting on trading, WSP, which issued a profit warning back in June, conceded that 2011 had been a challenging year and similar conditions are expected to continue in 2012.

However business in Sweden is taking strong momentum into 2012 across both its public and private sector activities. In contrast the UK market is likely to stay subdued with ongoing constraints on public sector spending and a private sector where confidence and financing remain under pressure.

WSP underlined its "soundly financed and well diversified positioning" and expects to perform resiliently in difficult markets and to rapidly benefit when markets improve.

"The order book has remained stable and we continue to leverage our global footprint to win significant and high profile appointments across our various sectors and geographies," it said. These include contracts in Qatar, Australia, Europe and the US.

"Businesses in the US are expected to report steady progress against a backdrop of a slow economy and we expect to see progress in our various other markets in the Rest of the World," it said in a company statement.

The group, which reported an exceptional provision of £5.1m in its interim results against its asset exposure and reorganisation costs incurred in Libya, said whilst recent developments in the North African nation are encouraging it remains too early to determine what recoveries the group may make against this provision.

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cj