John Wood Group Slips To Loss In H1, But Revenue Increases; Lifts FY23 View

John Wood Group PLC (WG.L), an engineering and consulting business, Tuesday reported a loss for the first half, compared to prior year’s earnings. However, revenue increased by 16.2 percent. The company also increased fiscal 2023 guidance for revenue and EBITDA.

For the first half, the company reported a loss of $27 million or 4.3 cents per share, compared with earnings of $89 million or 13 cents of last year, on lower level of profit from discontinued operations and tax charge in the period.

Excluding items, earnings per share decreased 80.7 percent to 1.1 cents from 5.7 cents of previous year. The result reflected the absence of Built Environment Consulting that had contributed $57 million of adjusted profit after tax prior year.

Adjusted EBITDA increased 8.5 percent to $202 million from $186 million last year. The growth was 12 percent on a constant currency basis.

Revenue climbed 16.5 percent to $2.98 billion from $2.56 billion in the previous year, on growth in all business units.

Adjusted revenue grew 16.2 percent from last year, and the growth was 20 percent on a constant currency basis.

Looking ahead to fiscal 2023, the outlook for adjusted EBITDA is ahead of its previous expectation, and within medium-term target of mid to high single digit growth. The company also expects a flat adjusted EBITDA margin at around 7%.

John Wood expects revenue to grow at a lower rate in the second half compared to the first half. For the year, the firm projects a revenue of $6 billion.

In London, John Wood shares are trading at 154.00 pence up 3.98%

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