John Wood Group PLC (LSE:WG.)’s interim report on Tuesday, 20 August comes hot on the heels of a scrapped takeover bid by Dubai-based engineering group Sidara.
Despite engagement with Sidara and an extended period of due diligence, the firm axed plans to takeover UK-based peer Wood earlier this month on geopolitical concerns, sending shares in the FTSE 250-listed group spiralling.
Wood Group subsequently moved to reassure investors that growth plans could still be met without Sidara, including aims for “significant” cash flow next year.
Investors will therefore await further clarity on Wood’s outlook without the prospect of a takeover.
Wood already offered up a preliminary interim report in July, highlighting an expected 6% dip in half-year revenue to US$2.8 billion (£2.2 billion) but 4% uptick in adjusted earnings to US$210 million.
This was as higher pricing and lower pass-through activity helped offset a dip in revenue from Wood’s shift away from engineering, procurement and construction work to services and consulting.
Wood noted full-year guidance for high single-digit adjusted pre-tax earnings growth remained, as the company’s performance is expected to be weighted to the second half.
Shares have fallen 20% this year after gains were wiped out following Sidara’s exit.