Wood Group (john) Share Discussion Threads

[pogue] 07/11/2024 10:55

Hazl
filter on for him so I dont reply to his nonsense I will let people make up thier own minds.

[pogue] 07/11/2024 10:54

I suggest anyone who wants to know about Dealy look at the PFC thread and look at my posts and decide who got that one right.

[hazl] 07/11/2024 10:52

Oh dear no need to get nasty people.
It is what it is.

[pogue] 07/11/2024 10:51

I really hope you think I am lying and invest accordingly Dealy you deserve everything that comes your way.

[dealy] 07/11/2024 10:49

well that's the best evidence possible to demonstrate that your post is completely fabricated

[hazl] 07/11/2024 10:49

Faz interesting.
edit

just seen your response pogue.




Complicated business and of course government doesn't like oil companies at the moment.

[hazl] 07/11/2024 10:48

Ivyhedge I enjoyed your post till I read....at least a week or two!

Chuckle.

It's a strange environment at the moment and rather than elections being the main factor, whilst of course adding to it ... I would say the big dispute higher up as to whether we will be continuing with the green agenda or not has definitely played it's part.

Oil or not oil that is the big question.
Now Trump has got in surely this moves us further away from whatever green means.
I could not understand why they removed so many dams over the last two years in Europe, for example.
Did I really read that it was to help the ecology of fish?
I don't know .
But the cynic in me wonders if the floods in Spain have not been helped.
BWDIK.
IMO

[dealy] 07/11/2024 10:42

Firstly, if this is true, why has the company not announced that it has a potential claim against it regarding the treatment of VAT?Secondly, this is bread and butter for service or construction companies that have been dealing with basic operations issues like this for decades

[pogue] 07/11/2024 10:33

faz
the legality of this has now been proven in court I believe a contractor took them to court and judgement was VAT should be charged. I am guessing the contractor was scared of the VAT bill he would get in the future as when you signed a contract there you had to agree that WGs legal counsel was right in their interpretation of the law thus potentialy opening you up to major issues as it is WG have done the correct thing and decided to refund all VAT due however there will be interest and penalties for the contractors. If I was one of them I would be starting a class action on a no win no fee basis. WG took incorrect legal counsel a few years ago and applied it. The contractors have all received emails asking them to submit VAT invoices for all VAT missing the last 4 years. Its happening its not up for debate just the size of the problem is the issue.
WG can off course off set the VAT they give to the contractors PSCs against VAT they have incurred but I suggest that they have plenty of other costs that has used up the VAT they could claim back for those years. If it was something they would have been able to do why did they go down this road of not paying VAT anyway? It was clearly contributing to profits they otherwise would not have got.
The review will get to the bottom of it but that will take time and leaves the market uncertain as to what the outcome will be.

[dealy] 07/11/2024 10:27

Great post, thanks. Just in general terms: - companies have vast experience in these matters (invoicing, paying suppliers, establishing contracts with suppliers, dealing with VAT / sales taxes etc- there are often times where a consultation is needed with the tax department in various countries to clarify such issues; there are also regular disputes on such issues between companies and tax authorities and they are negoatied into settlementsWhatever issues there are, they are highly likely to be manageable

[puffet] 07/11/2024 10:20

Robin Watson and the purchase of Amec, Wood has never recovered from that.

[faz] 07/11/2024 10:20

I am reading about the VAT issue posted by Pogue. If a company incurs a VAT cost as part of its business it can normally reclaim it in full. HMRC has no jurisdiction outside the UK so cannot force anyone to invoice + anything other than UK VAT. And the party at fault for not invoicing + VAT is the supplier not the buyer, ie the contractor. The rule then is place of work. If the work ie the service, is being delivered outside the UK the VAT can be zero-rated. So I am not sure what non-recoverable VAT cost Wood are at risk of incurring here. if Wood were self-billing then the VAT should be recoverable from HMRC. What am I missing?

[willie99] 07/11/2024 10:20

I would expect the short activity to increase here, as the hedge funds will smell blood. It’s starting to look a bit like PFC, and that didn’t end well for shareholders. Buyers be ware.

[dealy] 07/11/2024 10:14

Every business needs to price its services appropriately to win contracts but achieve a reasonable return

[pogue] 07/11/2024 10:12

You should look at the margins though, they are very low. If they screw a project up the costs can be brutal.

[mj19] 07/11/2024 10:07

$4.33 billion a year!!Order book $5.4 billionCost cutting savings of $60 millionAnd it's 70p

[dealy] 07/11/2024 10:06

I've been involved in huge sell offs before but for a 50% drop you need something really substantial such as: massive profit warning; regulatory fines and exit from business; balance sheet disaster etc.Doing an independent financial review for the auditors does not come under that list

[ivyhedge] 07/11/2024 10:03

I have followed and bought and sold this share over the last two years. Nothing wrong with what they are doing and going forward slowly. Todays news was about what I expected. Many governments havent made any desicions in last few months because of elections hence reason for a slow down in projects and getting things signed off around the world.
I thank all those that panicked and allowed me to spend £20,000 picking up shares from 65p-70p. Will I be proved right, we will see but there is no way the shares should be that low. If I sold my new shares now I would make about £1000 profit. I will sit on them for a week or two at least. They still have several projects waiting to be signed off, and still one company sale to complete.

[tomboyb] 07/11/2024 10:01

I'll stick here as well -

Lets see what happens -

[willie99] 07/11/2024 09:59

That should read…I would not be surprised if there was a bid etc…

[willie99] 07/11/2024 09:58

Hi Pogue…I was tempted to sell earlier in the week, after your post about the VAT case, however I dithered. I sold first thing this morning at 99p, and looking at the share price now, I feel lucky and relieved to be out.

I would be surprised if their is a bid once the review is completed, and assuming it doesn’t discover and expensive skeletons, but it would be at a much lower figure than Apollo or Sidara were proposing. Sir Ian Wood will be not be a happy man this morning.

[totalgeek69] 07/11/2024 09:56

Prior to the election in bought a few Schlumberger shares. I'm up 8%... This is an over reaction in my view.

[dealy] 07/11/2024 09:53

it's ironic that yesterday the pendulum swung away from renewables back to fossil fuels (due to Trump). The long term value of this sector should be rising. Also the trouble at Petrofac should be making life easier for Wood Group

[mj19] 07/11/2024 09:48

Best time to bid is now.. this is a severe over reaction???