John Wood Group's adjusted pre-tax profits swelled over 60 per cent to $254m (£162m) last year as the energy services specialist successfully managed a potentially difficult transitional year following the disposal of its well support business (accounting for the huge rise in EPS) and the $1bn acquisition of PSN.
The integration of PSN is on-track after initial problems, and the newly created production facilities support business delivered a 52 per cent rise in trading profit to $153m on revenues up $1bn to $3bn (£1.9bn), The outcome would have been better still if not for losses linked to operations in Colombia and Oman; the latter of which will continue to impact on performance through 2012. Profits were also helped along by improved margins at both the engineering and GTS divisions, which provide a measure of reassurance, given initial concerns that group margins would be constricted in the wake of the PSN acquisition. In fact, overall operating margin from continuing operations moved up from 5.35 to 6 per cent.
Prior to these figures Clarkson/Daniel Stewart anticipated adjusted 2012 EPS of 89.8¢ (2011: 60.2¢).
| JOHN WOOD GROUP (WG.) | ||||
|---|---|---|---|---|
| ORD PRICE: | 743p | MARKET VALUE: | £2.8bn | |
| TOUCH: | 742-745p | 12-MONTH HIGH: | 775p | LOW: 461p |
| DIVIDEND YIELD: | 1.1% | PE RATIO: | 2 | |
| NET ASSET VALUE: | 529¢** | NET DEBT: | nil | |
| Year to 31 Dec | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2007 | 4.43 | 260 | 33.0 | 7 |
| 2008 | 5.24 | 384 | 49.6 | 9 |
| 2009 | 4.93 | 265 | 32.1 | 10 |
| 2010 | 4.09 | 128 | 32.4 | 11 |
| 2011 | 5.67 | 95 | 530.7 | 13.5 |
| % change | +39 | -26 | +1,538 | +23 |
Ex-div:11 Apr Payment:16 May £1 = $1.58 **Includes intangible assets of $1.62bn, or 436¢ a share | ||||
