2. "Disappointing" financial performance from Wood GroupEngineering business Wood Group LON:WG. has this morning issued a full year trading update. The company has delivered against guidance having taken action to mitigate weaker than expected Q4 trading. The orderbook has however been significantly bolstered in the final quarter and good growth is expected for the year ahead, although free cash flow is tipped to remain negative until 2026. With management conceding they are disappointed with the financial performance, it could be a turbulent start for the stock. |
Why i say that The market was waiting for the review outcome , Which in the RNS was addressed But completely overlooked Q4 was near has dam it in line If Apollo drop a bid on Monday morning Shorters will be toast Fingers crossed we see some VW action Poetry in motion for the city |
Kingston exactly my thoughts Who ever wrote got the cash crisis completely wrong Their is absolutely no cash crisis at wood That's why Fridays share price reaction is even more remarkable This all could lead to a serious short squeeze here I hope they have some close friends ! |
Hope it falls further Monday… I’m a buyer.. absolute bargain in the 20’s. takeover or recovery play. |
 Cash crisis? What cash crisis? In all schemes of things the estimated amount of the negative cash flow to be plugged by hopeful disposal proceeds of certain businesses is small. Even if there are no disposals the existing lenders will probably lend the company the shortfall amount.
The financial review does not impact on the company's ability to carry on as usual or to generate cash. It has identified weak financial and accounting control. The prior year adjustments are simply to correct figures, shifting certain revenue and costs to the "correct" years. It has no impact on CASH. Nothing has been lost and there is no fraud (or alleged fraud).
The City was hysterical on Friday. A calmer person at the weekend would have a clearer thought about the business and its underlying value. On Friday, there must have been a lot of short sellers in action. I have seen it all before.
To put it into perspective, a shell company called Sealand Galaxy Capital with an investment in an AI start up was recently valued at £100 million at its peak (since fallen a long way down now). In contrast, John Wood has a real diverse business with skilled workers working around the globe, serving well known customers.
I am of the opinion that as soon as the big short sellers close their positions the share price will bounce back strongly, to the 50 p level ( the opening price last Friday). |
Aston Martin has had a couple of these "cash crisis'" over the past 3 years but it always managed to get it's core shareholders to put in a bit more equity to keep the company funded while it executed it's business plan (including dealing with short term set backs).Wood Group is not a black hole. Its business plan makes sense, notwithstanding a couple of hiccups along the way. |
Only FOOLS and MUG PUNTERS try to catch a falling knife !! |
Article in The Times today on the share price fall, calling it a "cash crisis".
There's also an analysis, which ends as follows:
Any potential buyer would be attracted by a skilled workforce, and order book worth $6.2 billion and long-term relationships with blue-chip customers around the world. Suitors would have to consider Wood's net debt, which was $690m at the close of 2024 and is forecast to average $1.1 billion across this year. Sidara's six-month cooling off period under the Takeover Code has passed, meaning it could make an approach. If the share price remains depressed, an opportunistic buyer may believe it can put pressure on Wood's board and bag a relative bargain. |
Would expect the takeover announced next week will be over 80p |
I missed the action here on Friday. Very interest situation. Does anyone think it will be possible to buy in around Friday's closing price first thing Monday morning? |
All newbies buying in now can grab a bargain… it’s never been so cheap. Give away imo. The last 2 hours of trading Friday wiped 25% or £50m off the MC alone. Madness |
Even if the lenders say that they want to see some equity raised as part of the refinancing - then so be it. Many companies are doing that. Quick placement to appease the debt holders. No big deal. Some time next year |
Skif… they have over 18 mths to consider debt. By then this will be well repaired or sold. £6b order book and climbing, specialist sector and well established company. Imo though I think this is sold and a bidder will appear soon. Crazy share price at present. MC £200m unbelievably cheap. |
Another Jarvis. |
It’s in discussion now Kirk !. Bid last August at £2.20 ps and to carry the same debt over… £1.6b value was given.They can return now and take the lot , re shape, lay staff off and make it leaner, better management and with $6b of orders … all for £400m saving £1.2billion from the original bid…then pay off the debt and hey presto. It’s not rocket science here at these levels. |
Looks like a takeover could be announced as soon as Tuesday next week |
Approach coming soon…. Bidders will be licking their lips here.. This time the BOD won’t be in a position to obstruct it. Imo 50p bid minimum.. buy & hold here at anything in the 20’s, the share price has never been cheaper!. |
Did you notice the line about the review ? So at 70 pence plus The market is waiting for the review outcome Yesterday They stated no monetary affect Did the market miss this vital point Wasn't this the reason for the last fall ? Games are being played here And I'm pretty certain who by |
Lol Maybe Wood group isn't for you ...By the time you've worked it all out The city will have shut the opportunity on offer for private investors U see I've worked in the city ... They don't just work 8 till 4.30 Many calls will be taking place this weekend Because the prize here Could be considerable !! |
I am continuing it as you dont know what you are talking about re the EPC market I am sorry. You can huff and puff as much as you want but I never saw a year so busy as last year for a long time. Wood group had a good year last year and lost money that is the point and are now selling parts of their income stream to cover debt thus reducing income even more.
It maybe undervalued but what is the value is the question? The market is taking a strong view on that after it has already dropped it a hell of a lot already. Something not smelling right. |
Washingmachine
why have I been getting high levels of enquiries about my availablity for a contract all year if the market was not in a bull? For a few years there I was lucky to get one a month offered last year it was two or three a week. All the EPC offices last year were struggling to get engineers they had so much work and you think that is not a bull run? Honestly you do not know the industry I do.
Last year my agent was, and still is, offering me £500 if I get a contractor onboard to fill a vacancy with them, not a staffy a contractor!, I have never heard that in my life. |
Multiple failures and no one to blame? How novel! |
Crazy valuation… (at present that is) bid will come.. may even lose more MC yet!.. screws on the BOD will tighten. |
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