John Wood Posts Flat Loss In H1, Adj. EBITDA Margin, Orders Up; Sees Growth In H2, FY

British consulting and engineering company John Wood Group PLC (WDGJF.PK,WG.L) reported Tuesday that its first-half loss was $11 million, same as last year. Loss per share was 1.7 cents, compared to last year’s loss of 2.2 cents.

Adjusted earnings per share were 8.9 cents, compared to 10.4 cents a year ago.

Adjusted EBITDA fell 14.1 percent to $262 million, while adjusted EBITDA Margin edged up 0.8 percent to 8.3 percent.

Revenue for the period fell 23 percent to $3.15 billion from prior year’s $4.09 billion, primarily reflecting the impact of Covid-19 and including a $74 million reduction in revenue from disposed businesses.

Order book grew 9.1 percent to $7.69 billion from prior year’s $7.05 billion.

Looking ahead, the company stated that improving activity levels and strong order book growth underpin its confidence in growth in the second half.

Full-year revenue is expected in the range of $6.6 billion to $6.8 billion, underpinned by trading momentum and strong order book growth.

The company projects further improvement in full year EBITDA margin to 8.7 percent to 8.9 percent, reflecting progress towards medium-term target of 9.6 percent.

The company sees a stronger second half, returning to growth relative to both first half and last year’s second half, whilst also laying strong foundations for 2022.

Robin Watson, Chief Executive, said, “Trading momentum and good growth in our order book, which is up c18 percent year-to-date, underpin our confidence in delivering a stronger second half which will reflect a return to growth compared to both H1 2021 and H2 2020, and further growth in our full year adjusted EBITDA margin.”

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