The recent rally in Amec Foster Wheeler 's (AMFW) shares was further boosted by a 7 per cent gain on the publication of full-year results. This was in part due to the £946m net debt figure, which came in below guidance and analyst forecasts. The engineering services group, which has been dogged by concerns over its borrowings, is now fixed on cutting the debt pile by half in 2016.
IC TIP:
Buy
at
503p
To do that, Amec is putting a number of non-core assets up for sale, including its power equipment business, the Global Power Group. However, any eventual sales price is now likely to be slimmer after a downgrade in future profit forecasts caused Amec to book a £308m non-cash impairment charge against the division.