John Wooden Group has revealed an eye-watering first-half loss only a fortnight after a suitor walked away from a takeover strategy.
The oilfield providers enterprise posted an $899million (£691million) working loss for the six months ending June, in comparison with a $23million revenue the earlier yr.
FTSE 250-listed Wooden Group booked $966million in distinctive prices, together with an $815million goodwill impairment from legacy takeovers and better low cost charges brought on by better market volatility and debt service prices.
Big loss: John Wooden Group posted an $899million working loss within the six months ending June, in comparison with a $23million revenue the earlier yr
One other $140million in prices was recorded in relation to the corporate’s choice to withdraw from lump sum turnkey and large-scale engineering, procurement and building work.
Nonetheless, Wooden Group has upheld its annual steerage, with adjusted earnings earlier than nasties – previous to the affect of disposals – set to develop by a excessive single-digit share this yr.
Its order e book additionally elevated by 3.6 per cent to $6.2billion, due to new contracts received by its operations and funding providers divisions.
The previous phase not too long ago received a $46million contract from TotalEnergies for flare fuel restoration providers in Iraq and the North Sea and a six-year deal from Shell for work on a significant offshore liquefied pure fuel facility in Australia.
Ken Gilmartin, chief government of Wooden Group, mentioned: ‘As we glance forward, we stay assured that our technique, actions we’re taking and development potential throughout our markets will ship vital worth for our shareholders.
‘We’re happy to reconfirm our outlook right now, each for 2024 and 2025, together with producing vital free money move in 2025.’
Dubai-based engineering enterprise Sidara withdrew from an tried £1.6billion acquisition of Wooden Group on 5 August, citing ‘rising geopolitical dangers and monetary market uncertainty’.
Wooden Group incurred round $6million of prices from the failed bid and expects to run up about $5million extra within the second half of the yr, however can have some prices reimbursed by Sidara.
The Edinburgh-based firm was additionally the goal of a takeover strategy by personal fairness big Apollo International Administration final yr.
Apollo put ahead 5 gives for Wooden Group, with the ultimate one valuing the agency at £1.7billion, earlier than strolling away in Might 2023 with out offering a proof.
Adam Vettese, market analyst at eToro, mentioned: ‘Query marks will stay after one other failed bid with shareholders searching for the chance for added returns which has gone begging as soon as once more.’
John Wooden Group shares had been 0.2 per cent up at 132.8p and have misplaced about 21 per cent of their worth for the reason that yr started.
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