Consulting and engineering company Wood Group reported a rise in interim profit as trading momentum improved in the second half and its order book grew.
Operating profit for the six months to June 30 rose to £68.2m from £65.6m a year earlier. On a pre-tax basis, profits soared to £18.4m from £0.9m although revenue fell 22.9% to $3.2bn. The dividend was withheld.
The booked a net loss of $11.4m from a $10.5 million loss a year ago, reflecting higher tax charges. Adjusted core earnings fell 14% to $262m in line with guidance of $255m -$265m provided in June.
Wood maintained full-year guidance and forecast revenue of $6.6bn – $6.8bn with an improved core earnings margin of 8.7% – 8.9% and net debt reduction in the second half.
“Trading momentum and good growth in our order book, which is up 18% year-to-date, underpin our confidence in delivering a stronger second half which will reflect a return to growth compared to both H1 2021 and H2 2020, and further growth in our full year adjusted EBITDA margin,” the company said on Tuesday.
