Wood Group (#WG.) – Q1 revenue -6% YoY, adj. EBITDA +4%, order book +9%
- 2024-05-09 06:46:48
UK 23:22 Wednesday, 21 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Energy and related services business Wood Group (WG.) has announced results for the 2023 calendar year headlined “Strong growth in first year of new strategy; upgrading outlook”. How good is the news from a rising towards 135p share price?
Consulting, projects and operations business Wood Group (WG.) has issued a trading update emphasising that 2023 calendar year trading continued to show clear progress and that it is “on track” for 2024 as it previously guided.
Wood Group (WG.) has announced third quarter of the year growth across all of its business units and that it expects “modest positive free cash flow in the second half… order book position supports our expectations for 2024”. What of this from a current 154.7p offer price?
I am a bit disappointed that Wood Group (WG.) shares are down a couple of percent this morning as I write. Its third quarter update, after all, concluded that its full year outlook was confirmed. As always, it depends what is already priced in, and what is said about what is likely to go on next year and beyond. Investment is always an analytical game at many levels.
Wood Group (WG.) was a tip last year at a 155p offer price – with we then noting we looked to repeat previous success of a more than 40%, less than 7 months, offer-to-bid gain. In April this year we banked more than 45%, little more than 9 months, gains at 226p. Following recent half-year results which emphasised “clear strategic progress, strong growth and increasing full year guidance”, though with the shares at a 156.7p offer price we consider this again a good time to Buy.
It is not an easy market out there, but not an impossible one either. Wood Group (WG.) has been one of my year-to-date best performers. I know the headline share price is not even up 10%, but I did sell the majority of my shares after the potential bid approach…and then I bought all the shares back at what looks to be a pretty attractive price three months ago (after sharing it all on the website, naturally). As I shared here last month, recent progress seems to be solid and today’s formal update even includes an observation that it is “increasing our full year guidance for the year for revenue and EBITDA”.
You know already that over the last eight months or so, I have bought a bunch of shares in Wood Group (WG.), sold most of them after a private equity bid, and then bought them all back after the bidder chose to walk away. We will see whether this is smart or not over time, but I have made more than a few quid so far this year on it and I reckon there is a good chance I might make a few more quid over the next year or so. As always, we shall see but what did this “one of the world’s leading consulting and engineering companies operating across Energy and Materials markets” say in a trading update today?
Correct me if I am wrong, but I believe there is a reason why the US market is starting a bit quietly this week. Actually, a few people have been a bit busy elsewhere as today is the first working day of the second half of 2023. It has been a far from boring first six months of the year, and I am sure everyone has a view about how the second half of the year will play out. I could waffle on for ages about this, but we will all learn much more via the corporate earnings season from mid-July onwards and I noticed two FTSE 350 insights of interesting this morning.
I have been really busy over the last week as the global quarterly corporate earnings season has been a bit manic. However, this is what makes the investment world a bit of fun. May Day gives a bit of a chance to think, and my question (to myself) for today is “am I going to be holding more or less available cash in my pension fund at the end of next week”?
Previously writing on 155p offer price July last year tip Wood Group (WG.), earlier this month with the shares at 200p we noted that, although the share price suggested that the market did not believe takeover proposals would succeed, it looked to us like the major shareholders were open to a deal and that anyway there looked medium term upside so continue to hold. Now there’s been a further announcement on the possible takeover from the group – and the shares are up to above 226p.
Nothing is ever over until it is over, but it is a big moment for Wood Group (WG.) when its board stated today that it has “decided to engage with Apollo to see if a firm offer can be made on the same financial terms as the Final Proposal….accordingly, the Board will grant Apollo access to due diligence materials”. As I discussed a few weeks ago, when I wrote my ‘tip of the year’ piece on the company back in December I said my fair value was c. 250p a share and not the 240p that Apollo is offering. I guess you should never be excessively greedy in the world of shares and, let’s face it, my 250p target was over the next two or three years. In short, I am tempted to accept the offer.
Writing on Wood Group (WG.) last month we noted a Takeover Panel extension until 5pm on 19th April including the group stating “following engagement with shareholders” suggested to us that the major shareholders are open to a deal. Now a 'Final Proposal' announcement from private equity bidder Apollo and a response from Wood Group.
