- First-half revenue and profit top forecasts
- Full-year targets raised
- Shares gain 5% to top FTSE 250
Shares in John Wood Group (WG.) jumped 5% to 155.7p after the energy services firm lifted its outlook for full-year sales and profits following a strong first half and ‘significant’ contract wins.
The news will come as some relief for shareholders after private equity giant Apollo Global Management (APO:NYSE) decided in May not to proceed with a 240p per share offer after finally gaining access to the company’s books at the fifth time of asking.
SOLID FIRST-HALF TRADING
For the first six months of the year, the group posted a near-20% increase in revenue on a constant currency basis to just under $3 billion, ahead of last month’s guidance, thanks to double-digit sales and pipeline growth across the majority of its markets.
The firm said it had seen ‘excellent’ growth in its carbon capture and hydrogen units, with sustainable solutions generating $600 million of sales during the half, a 20% increase on last year.
Moreover, fully one third of its $6 billion order book now comes from its sustainable solutions business.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) also beat expectations with a 12% increase in constant currencies to $202 million.
RAISED FULL-YEAR GUIDANCE
‘When we announced our growth strategy in November last year, we set out a plan for Wood to deliver on its significant potential, and I am delighted that our results show the clear progress we are making’, said chief executive Ken GIlmartin.
‘We have made a good start to the year, delivering growth in revenue, EBITDA, headcount and our pipeline. As we look ahead, we are confident that our actions, the business model we have implemented and the market growth opportunities to which we have aligned, support the momentum we are building in our business. As such, we are increasing our full year guidance for the year for revenue and EBITDA.’
The firm is now guiding for full-year sales of $6 billion against $5.4 billion last year and for mid- to high-single digit growth in adjusted EBITDA.
'Wood's strong performance in the first half reflects its strategic alignment with growth opportunities in the market, as well as its dedication to maintaining a sustainable and dynamic business model' said Andy Murphy, Edison Group's director of content and industrials research.
'The decision to increase its full-year guidance for both revenue and EBITDA serves as a clear indicator of the company's robust standing as it progresses through the remainder of FY23', added Murphy
