Wood Group (John) have proposed an interim dividend of 11.4c, up 1% in line with progressive dividend policy
Other financial highlights include:
Revenue of $4.8bn reflects relatively robust activity levels with growth in built environment activity in E&IS offset by lower revenues in ASEAAA and STS
Strong EBITDA and operating profit growth. In line with guidance, pre-IFRS 16 adjusted EBITDA increased by 7% and pre-IFRS 16 operating profit before exceptionals by 28%
Pre IFRS 16 adjusted EBITDA margin improved to 6.6%, driven by improved execution, sales mix and cost synergies of c$30m
On a like for like basis, adjusting for disposals executed in 2019, pre IFRS 16 adjusted EBITDA of $314m was up 12% and adjusted EBITDA margin was up 90 basis points
The positive impact of the adoption of IFRS 16 on adjusted EBITDA was $70m, lower than originally anticipated
Operating profit before exceptionals (including the impact of IFRS 16) was $168m after amortisation charges of $119m, depreciation of $88m and interest and tax on joint ventures of $9m
Profit for the period of $13m includes the impact of post tax exceptional costs of $47m ($29m pre-tax), related to cost synergy delivery, investigation support costs and loss on disposal of TNT
Agreed sale of nuclear business for c$305m (c12.4x 2018 EBITDA). Closing anticipated in Q1 2020 will accelerate progress to target leverage
Net debt at 30 June of $1.77bn was adversely impacted by two cash receipts totalling $130m anticipated in June but received in early July (Net debt : adjusted EBITDA pre IFRS 16 of 2.5x5). No change to full year expectations on cash generation.
