On one level, full-year results for Amec Foster Wheeler (AMFW) were much of a muchness. After all, a lot of the detail published in 2016's audited figures was revealed on 13 March, when the oil services group announced it would be merging (or taken over, depending on your perspective) by Wood Group (WG.). But while Amec will soon cease to trade as a separate entity, the all-share nature of the transaction means these numbers should matter to shareholders of both companies.
A glance at a largely flat top line shows what went right for Amec last year: the useful drop in sterling and a record performance from the solar business, which helped to push revenue at the power and process division up 50 per cent to £1.46bn. Group-wide cash conversion was also up to a respectable 118 per cent, thanks to disposals and strong cash collection in the final quarter.
There were a greater number of concerns. Margins reduced 110 basis points to 5.8 per cent, although trading profit was far exceeded by impairment charges of £526m on GPG, the Americas division and several other assets. Borrowing covenants were expanded in April, although sterling-denominated net debt increased in the period to £1bn.
AMEC FOSTER WHEELER (AMFW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 563p | MARKET VALUE: | £2.19bn | |
| TOUCH: | 562.5-563p | 12-MONTH HIGH: | 631p | LOW: 353p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | na | |
| NET ASSET VALUE: | 260p* | NET DEBT: | 100% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 4.01 | 254 | 65.2 | 36.5 |
| 2013 | 3.97 | 255 | 63.8 | 42.0 |
| 2014 | 3.99 | 155 | 36.1 | 43.3 |
| 2015 | 5.46 | -235 | -66.1 | 29.0 |
| 2016 | 5.44 | -542 | -139 | 7.4 |
| % change | -0.3 | - | - | -74 |
Ex-div: na Payment: na *Includes intangible assets of £2.68bn, or 686p a share | ||||
