The £40 million cap is set to enjoy higher profit margins after becoming more selective in the work it takes on and driving through operating efficiencies. Potential near-term catalysts include contract wins and acquisitions to expand its skillset and/or geographical coverage.

WYG has risen by 36% since we highlighted the stock at 45.5p (see Shares, Small Caps, 14 Jun). There’s plenty more to go. The support services group beat market expectations at its interims last week (29 Nov) where it returned to profitability at the operating profit level.

Management is confident of soon winning new work in the defence industry. It is also bidding for three ‘very large’ contracts to project manage work for the Department for International Development on overseas infrastructure developments in countries such as Bangladesh and Nigeria.

Overseas work has historically been driven by public sector contracts. WYG says it is now chasing more private sector work and is already making in-roads in Turkey.

Shares says: Buy WYG at 62p