The 10 per cent share price rise that greeted news of Amec Foster Wheeler's (AMFW) debt refinancing underlined the market's concerns with borrowing levels. The group no longer needs to make capital repayments until 2019, and has been granted further headroom on its net debt to cash profits covenant.
IC TIP:
Buy
at
492.2p
Amec's shares received a further boost last week from the announcements of new contracts from BP and the US Air Force, which follow a $183m (£129m) contract with the US Army to build a missile defence system in Poland.
Canaccord is forecasting full-year adjusted EPS of 53.8p and operating earnings of £329m, down from 68p and £373m.
