Consolidation in the consultancy sector is being held back by unrealistic valuations, White Young Green鈥檚 chief executive says.

Announcing the group鈥檚 results for the six months to 31 December 2007, Lawrie Haynes said its acquisitions would continue at the current rate but sellers needed to adjust to the new economic reality. He said: 鈥淰endors must get used to the idea that values have fallen.鈥�

WYG has spent 拢25m on three consultancies over the half-year, but Haynes said he would not rush to buy more until the market settled.

Pre-tax profit at WYG jumped a third over the period, from 拢6.9m to 拢9m, on the back of a 35% increase in turnover to 拢134m.

Peter Wood, its chairman, said: 鈥淭he strategy of having a broad-based business with no disproportionate dependence on specific sectors means the group is well-positioned to meet the demands of its growing client base.鈥�

Haynes said the company had noticed a slowdown in the housing market, particularly in Ireland, and that the London office fit-out market had seen a 鈥渧ery small drop鈥�.

Its engineering division delivered the strongest turnover growth of 42% and accounted for 43% of turnover (2006: 41%).

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