Interim Results

3 September 2002 John Wood Group PLC Interim results for the period until 30 June 2002 Wood Group is a market leader in the provision of selected engineering design, production support and industrial gas turbine services to customers in the oil & gas and power generation industries around the world. Operating in more than 30 countries, Wood Group's businesses employ over 10,000 people. Highlights * Revenues up 14% to $812.7 million (2001: $713.0 million) * Earnings before interest, tax and amortisation up 19% to $61.7 million (2001: $52.0 million) * Profit before tax up 32% to $50.9 million (2001: $38.5 million) * Earnings per share pre amortisation up 28% to 7.8 cents (2001: 6.1 cents) * IPO successfully completed in June 2002 * Gearing reduced from 87% at December 2001 to 27% at June 2002 * Investment and capital spend of $59.5 million (2001: $39.4 million) * Interim dividend of 1.0 cent per share Sir Ian Wood, Chairman and Chief Executive, commented: 'Overall, we remain confident about the prospects for the rest of the year, and anticipate Group trading in line with expectations.' 'Looking further ahead, the Group has the management team, strategy and market opportunities to continue to develop a major international energy services business capable of delivering significant growth in shareholder value.' Contacts: John Wood Group PLC Sir Ian Wood Chairman and Chief 020 7404 5959 Executive Allister Langlands Deputy Chief Executive Thereafter Alan Semple Finance Director 01224 851 000 Carolyn Smith Corporate Communications 01224 851 099 Brunswick Group Limited Patrick Handley/Stuart 020 7404 5959 Bruseth/ Katya Reynier Interim statement In the first set of interim results following our recent IPO, we are pleased to report strong progress. In the six months to June 2002, revenues increased 14% to $812.7 million (2001: $713.0 million), earnings before interest, taxation and amortisation ('EBITA') increased 19% to $61.7 million (2001: $52.0 million) and earnings per share pre amortisation increased 28% to 7.8 cents (2001: 6.1 cents). We are continuing to develop our activities in five key growth areas in oil & gas and power, building on our position as a market leader in deepwater and subsea engineering, in production support and enhancement, in artificial lift and pressure control, in the industrial gas turbines aftermarket and in outsourcing and managed services in both the oil & gas and power markets. Oil & gas markets are generally robust, but there has been weakness in North American gas drilling and in Venezuela. Our global presence and broad market spread in gas turbine services has largely offset the deferral of maintenance by North American Power providers. Our results for the six months confirm the relative resilience of our activities compared with the oil service sector as a whole, particularly in North America. The prime reason for our IPO was to enable the Group to continue to fund its successful growth strategy, allowing us to take advantage of organic development and acquisition opportunities following our almost doubling in size over the last two years. Our gearing is now down to 27% and this is after acquisition investment of $35.1 million and capital expenditure of $24.4 million in the period. The Group is actively pursuing a number of investment opportunities in our selected growth areas. The directors have declared an interim dividend of 1.0 cent per share which will be payable to shareholders on the register on 20 September 2002 and will be paid on 18 October 2002. Engineering and Production Facilities The Engineering and Production Facilities business delivered an excellent performance during the period. Revenues increased by 39% to $456.4 million (2001: $329.5 million) and EBITA increased by 36% to $39.9 million (2001: $29.4 million) reflecting broadly similar margins of 8.7%. The revenue growth reflected strong engineering revenues in North America and the North Sea and the benefit of the acquisition in August 2001 of the Production Services Group in the Gulf of Mexico. In North America, Mustang and Alliance continued to benefit from strong order books and won a number of important upstream contracts, including Conoco Magnolia in the Gulf of Mexico and Marathon Alba in Equatorial Guinea. We are carrying out significant engineering on seven of the fourteen current Gulf of Mexico Deepwater projects including the four major developments for BP Deepwater. In the North Sea, Wood Group Engineering and Mustang are carrying out the project management and detailed engineering for BP Clair, the largest current new field development. In April, we announced the formation of Sigma 3 (North Sea) Limited, a new joint venture between Wood Group, Amec and Kellog Brown and Root to support Shell Expro in the UK sector of the North Sea with an anticipated £750 million of work over the next seven years. In June 2002, we added to our Gulf of Mexico operations and maintenance capabilities through the acquisition of Operators and Consulting Services, Inc. which had revenues in 2001 of $49 million, and which provides services to more than 70 customers. Wood Group is now a major player in the Gulf of Mexico operations and maintenance market, and we believe we are well placed to participate in the developing deepwater market. In Colombia, BP and Ecopetrol have awarded a new five year extended scope contract to Equipo. Our operations in Venezuela have felt some impact of the reduced activity of PDVSA. In Trinidad we have opened a new office to take advantage of the significant oil & gas opportunities occurring in that region. There is a continued focus on growth opportunities in Asia Pacific, and during the period an operation in Indonesia was established to provide both engineering and operations and maintenance services. Well Support As expected, Well Support faced more challenging market conditions in the first six months of 2002 as a result of the significantly lower rig count in North America and the political and economic uncertainties in Venezuela. Revenues were down 7% to $180.4 million (2001: $194.6 million) and EBITA was down 28% to $10.4 million (2001: $14.4 million), reflecting a reduction in margins from 7.4% to 5.8%. Wood Group ESP was awarded a further significant pay-for-performance contract in the Middle East for Joint Operations in Kuwait and also received its first major ESP system order in China for Devon Energy. ESP also continued to enhance its technology, and new product releases during the period included improved variable speed drives and a new generation of downhole sensors. Wood Group Pressure Control performed well, despite the challenging market conditions in North America. In the Eastern Hemisphere, we have invested in expanded manufacturing capabilities in the UK, and a new facility in Algeria was opened. Several new products have been introduced, including a new SPAR system and a second generation multi-bowl system, providing a smaller footprint, lighter weight and safer operation. Wood Group Logging Services activity levels were affected by the lower gas drilling in the Gulf of Mexico, but our wireline operation, with its production focus, continued to perform well and saw good growth in smart services and deepwater wireline operations. Gas Turbines Services Our Gas Turbine Services business made good progress during the period. Revenues increased by 4% to $158.4 million (2001: $151.7 million) and EBITA from continuing operations increased by 14% to $21.1 million (2001: $18.5 million) as margins increased to 13.3% (2001: 12.2%). The lower revenue growth reflected the uncertain market conditions in the North American power market and lower volumes from aero customers within our gas turbine accessories and components business. The Light Industrial Turbine business performed well and its new Aberdeen test facility for Alstom Tornado and Typhoon engines, opened in June, will provide good growth opportunities over the next few years. In our aero-derivative businesses, Rolls Wood Group is developing its new Allison industrial engine overhaul business in Oakland, California, and TransCanada Turbines has made good progress in developing its GE LM business. The Heavy Industrial Turbine business in the Eastern Hemisphere met expectations in the first six months but volumes in North America have been adversely impacted by the deferral of maintenance by many of the major power companies. We anticipate that the North American power market uncertainty will continue into 2003, but we are confident that our global presence and the increasing gas turbine installed base will provide good long-term growth. Our strategy is to continue to extend the range of services we provide to our power generation customers. In August 2002, we acquired Industrial Repair Services Inc ('IRS'), a generator repair company, based in New Mexico. All gas turbines used in power generation are linked to a generator and IRS will provide significant synergies with our existing operations. Our Accessories and Components business has been adversely impacted by the reduction in aero engine related activity compared to the same period last year. However, we continued to make progress in extending the range of industrial gas turbine accessories which we service and the second six months should see increased profits. Outlook Engineering and Production Facilities' strong first half performance should continue and Well Support's weaker markets in North America and in Venezuela are expected to improve towards the end of the year. In Gas Turbine Services, our global presence and broad market spread should continue to largely offset the weak North American power market. Overall, we remain confident about the prospects for the rest of the year, and anticipate Group trading in line with expectations. Looking further ahead, we are building up differentiation and market leadership in our five identified growth areas and we are increasingly benefiting from our wide global presence. The Group has the management team, strategy and market opportunities to continue to develop a major international energy services business capable of delivering significant growth in shareholder value. Financial Review Revenues excluding discontinuing operations increased by $119.4 million or 18% to $795.2 million for the six months to June 2002 (2001: $675.8 million) reflecting in particular the strong performance of Engineering and Production Facilities. Over the same period, EBITA excluding discontinuing operations increased $8.9 million or 16% to $63.9 million (2001: $55.0 million) with increases in Engineering & Production Facilities and Gas Turbine Services offset by the reduction in Well Support. The share of operating profit from ASCO, our associated company, was $2.8 million for the six months to June 2002 compared to $3.4 million for the equivalent period in 2001, reflecting reduced activity in North America. Cash inflows from operating activities amounted to $39.2 million in the six months ended June 2002. Net debt decreased by $125.3 million from $256.4 million at December 2001 to $131.1 million at 30 June 2002 primarily as a result of the IPO completed in June. Net proceeds of the IPO after expenses of $11.5 million and redemption payments of $29.6 million amounted to $174.2 million. Capital expenditure in the first half of 2002 amounted to $24.4 million and payments relating to the acquisition of subsidiaries, joint ventures and minority interest totalled $35.1 million. The Group's gearing ratio has reduced from 87% at December 2001 to 27% at 30 June 2002. Group borrowings are primarily U.S. dollar denominated. Of the total long-term borrowings of $172.5 million at 30 June 2002, $100.0 million or 58% were at a fixed rate of interest. The interest costs for the first six months were $7.9 million which was a reduction of almost $4.0 million from the same period in 2001, reflecting the fall in U.S. dollar interest rates in the second half of 2001. Interest cover based on EBITA, and excluding our associated company, was 10.6 times for the 6 months to June 2002. The effective tax rate for the period based on pre-tax profit before amortisation, is 35.1% which is similar to the effective tax rate in 2001. Earnings per share pre amortisation increased by 28% to 7.8 cents for the six months to 30 June 2002 compared to 6.1 cents for same period in 2001. The interim dividend is 1.0 cent per share and will be paid on 18 October 2002. John Wood Group PLC Group profit and loss account for the six month period to 30 June 2002 Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 $m $m $m __________________________________________________ Revenues including share of joint ventures Continuing operations 809.1 683.9 1,445.8 Acquisitions - 4.4 36.6 __________________________________________________ 809.1 688.3 1,482.4 Discontinued operations 3.6 24.7 41.4 __________________________________________________ Revenues including share of 812.7 713.0 1,523.8 joint ventures Less share of joint ventures (136.4) (115.0) (243.9) revenues __________________________________________________ Group revenues 676.3 598.0 1,279.9 Cost of sales (513.6) (446.7) (958.5) __________________________________________________ Gross profit 162.7 151.3 321.4 __________________________________________________ Administrative expenses (114.5) (111.6) (238.0) Impairments - - (1.0) Goodwill amortisation (4.8) (4.4) (9.2) __________________________________________________ Net operating expenses (119.3) (116.0) (248.2) __________________________________________________ Operating profit of Group 43.4 35.3 73.2 undertakings Share of operating profit in 12.6 11.6 24.0 joint ventures Share of operating profit in 2.8 3.4 6.5 associates __________________________________________________ Total operating profit : Group and share of joint ventures and 58.8 50.3 103.7 associates Total operating profit comprises: __________________________________________________ Continuing operations 59.0 49.6 101.3 Acquisitions - 0.3 2.2 __________________________________________________ 59.0 49.9 103.5 Discontinued operations (0.2) 0.4 0.2 __________________________________________________ Exceptional items Loss on the termination of - - (13.6) discontinued operations __________________________________________________ Profit on ordinary activities 58.8 50.3 90.1 before interest Net interest payable - Group (4.3) (7.8) (13.5) - Joint Ventures (1.5) (2.1) (3.2) - Associates (2.1) (1.9) (3.8) __________________________________________________ Profit on ordinary activities 50.9 38.5 69.6 before taxation Taxation on profit on ordinary (19.8) (15.2) (29.0) activities __________________________________________________ Profit on ordinary activities 31.1 23.3 40.6 after taxation Equity minority interests (2.8) (2.5) (5.5) __________________________________________________ Profit for the financial 28.3 20.8 35.1 period/year Dividends and appropriations (6.7) (11.7) (19.1) __________________________________________________ Retained profit for the 21.6 9.1 16.0 financial period/year __________________________________________________ Basic earnings per ordinary 8.3 5.1 7.4 share (cents) Diluted earnings per ordinary 6.5 4.1 6.7 share (cents) Adjusted earnings per ordinary 7.8 6.1 13.2 share (cents) __________________________________________________ John Wood Group PLC Group balance sheet as at 30 June 2002 Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 $m $m $m __________________________________________________ Fixed assets Intangible assets 185.2 150.0 156.2 Tangible assets 132.9 113.6 126.7 Investments in joint ventures __________________________________________________ Share of gross assets 275.4 226.6 255.2 Share of gross liabilities (212.7) (168.4) (194.0) Goodwill arising on 8.9 8.3 9.1 acquisition __________________________________________________ Total investments 71.6 66.5 70.3 Investments in associates 8.3 1.1 7.2 Other investments 1.1 1.3 1.2 __________________________________________________ 399.1 332.5 361.6 __________________________________________________ Current assets Stocks 155.5 179.3 153.4 Debtors 350.9 315.7 306.0 Cash at bank and in hand 49.5 111.6 129.3 __________________________________________________ 555.9 606.6 588.7 __________________________________________________ Creditors: amounts falling due within one year Bank loans and overdrafts (8.1) (7.9) (3.3) Other creditors (256.7) (236.3) (232.1) __________________________________________________ (264.8) (244.2) (235.4) __________________________________________________ Net current assets 291.1 362.4 353.3 __________________________________________________ Total assets less current 690.2 694.9 714.9 liabilities Creditors: amounts falling due after one year Bank loans (172.5) (380.5) (382.4) Other creditors (2.8) (2.2) (2.9) __________________________________________________ (175.3) (382.7) (385.3) __________________________________________________ Provisions for liabilities and (11.3) (13.4) (14.3) charges __________________________________________________ Net assets excluding pension 503.6 298.8 315.3 (liability)/asset Pension (liability)/asset (5.3) 1.9 (5.3) __________________________________________________ Net assets including pension 498.3 300.7 310.0 (liability)/asset __________________________________________________ Capital and reserves Called up share capital 23.2 105.1 105.6 Share premium account 200.1 - - Capital redemption reserve 88.1 - - Profit and loss account 175.3 184.2 190.4 __________________________________________________ Total shareholders' funds 486.7 289.3 296.0 Comprising __________________________________________________ Equity shareholders' funds 486.7 193.3 197.0 Non-equity shareholders' funds - 96.0 99.0 __________________________________________________ Equity minority interests 11.6 11.4 14.0 __________________________________________________ 498.3 300.7 310.0 __________________________________________________ John Wood Group PLC Statement of total recognised gains and losses for the six month period to 30 June 2002 Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 $m $m $m __________________________________________________ Profit for the financial 28.3 20.8 35.1 period/year Actuarial loss recognised in - - (10.1) the pension scheme Movement in deferred tax - - 3.1 relating to pension (liability)/asset Exchange movement on (5.9) (14.8) (8.5) retranslation of foreign currency net assets __________________________________________________ Total gains recognised in the 22.4 6.0 19.6 period/year Prior year adjustments - 29.3 29.3 __________________________________________________ Total gains recognised since 22.4 35.3 48.9 last annual report __________________________________________________ The prior year adjustments relate to the implementation of FRS 17 and the reinstatement of goodwill previously written off to reserves. Reconciliation of movement in shareholders' funds for the six month period to 30 June 2002 Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 $m $m $m __________________________________________________ Profit for the financial 28.3 20.8 35.1 period/year Dividends and appropriations (6.7) (11.7) (19.1) __________________________________________________ 21.6 9.1 16.0 Issue of new shares 216.1 - 0.1 Redemption of convertible (29.6) - - redeemable preference shares Expenses of share issue (11.5) - - Non-equity shares - - 8.5 8.5 appropriation adjustments Actuarial loss recognised in - - (7.0) the pension scheme net of deferred tax Exchange movement on (5.9) (14.8) (8.5) retranslation of foreign currency net assets Exchange movement on - (1.1) (0.7) retranslation of share capital __________________________________________________ Net increase in shareholders' 190.7 1.7 8.4 funds Opening shareholders' funds 296.0 287.6 287.6 __________________________________________________ Closing shareholders' funds 486.7 289.3 296.0 __________________________________________________ John Wood Group PLC Group cash flow statement for the six month period to 30 June 2002 Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 $m $m $m __________________________________________________ Operating activities Net cash inflow from operating 39.2 5.7 90.1 activities Dividends from joint ventures 1.8 3.4 6.6 __________________________________________________ 41.0 9.1 96.7 __________________________________________________ Returns on investments and servicing of finance Interest received 4.4 2.3 8.6 Interest paid (8.2) (13.7) (23.7) Non-equity dividends paid (6.5) (3.4) (6.6) Expenses of share issue (11.5) - - __________________________________________________ (21.8) (14.8) (21.7) __________________________________________________ Taxation UK corporation tax paid (1.0) (0.9) (5.5) Overseas tax paid (14.1) (8.7) (23.9) __________________________________________________ (15.1) (9.6) (29.4) __________________________________________________ Capital expenditure and financial investment Purchase of tangible fixed (24.4) (22.3) (51.1) assets Sale of tangible fixed assets 0.8 0.1 0.2 Disposal of investments 0.1 - 0.2 (Loans to)/repayment of loans (3.8) - 2.5 from joint ventures __________________________________________________ (27.3) (22.2) (48.2) __________________________________________________ Acquisitions and disposals Acquisition of minority (16.4) (5.4) (5.4) interests Purchase of subsidiary (18.7) (10.6) (27.0) undertakings, net of cash acquired Investment in joint ventures - (0.1) (0.3) Deferred consideration - (1.0) (2.8) __________________________________________________ (35.1) (17.1) (35.5) __________________________________________________ Equity dividends paid (2.8) (1.5) (1.5) __________________________________________________ Net cash outflow before management of liquid resources and financing (61.1) (56.1) (39.6) __________________________________________________ Management of liquid resources Decrease/(increase) in cash 7.2 (14.4) 36.0 placed on deposit Financing (Decrease)/increase in bank (206.5) 25.7 23.8 loans Issue of ordinary shares 216.1 - 0.1 Redemption of convertible (29.6) - - redeemable preference shares __________________________________________________ Net cash (outflow)/inflow from (20.0) 25.7 23.9 financing __________________________________________________ (Decrease)/increase in cash (73.9) (44.8) 20.3 __________________________________________________ John Wood Group PLC Notes to the interim accounts for the six month period to 30 June 2002 1. Preparation of interim accounts The interim report and accounts have been prepared on the basis of the accounting policies set out in the group's 2001 Annual Report and Accounts. The interim accounts were approved by the Board of Directors on 2 September 2002. The results for the six months to 30 June 2002 and the comparative results for the six months to 30 June 2001 are unaudited. The comparative figures for the year ended 31 December 2001 do not constitute statutory accounts for the purpose of section 240 of the Companies Act 1985 and have been extracted from the company's published accounts, a copy of which has been delivered to the Registrar of Companies and on which an unqualified audit report has been given by the auditors under section 235 of the Companies Act 1985. 2. Segmental reporting Business segments Revenues EBITDA Interim Interim Full Interim Interim Full Year Year June June Dec June June Dec 2002 2001 2001 2002 2001 2001 $m $m $m $m $m $m Engineering & Production Facilitiies Group 382.1 272.3 612.3 37.0 28.0 61.5 Joint Ventures 74.3 57.2 134.4 7.8 4.8 11.5 ______________________________________________________ 456.4 329.5 746.7 44.8 32.8 73.0 ______________________________________________________ Well Support Group 178.3 190.6 405.3 15.9 18.2 39.5 Joint Ventures 2.1 4.0 6.8 (0.5) 0.2 - ______________________________________________________ 180.4 194.6 412.1 15.4 18.4 39.5 ______________________________________________________ Gas Turbine Services Group 98.4 97.9 198.0 16.3 13.3 26.9 Joint Ventures 60.0 53.8 102.7 9.3 9.8 18.7 ______________________________________________________ 158.4 151.7 300.7 25.6 23.1 45.6 ______________________________________________________ Total excluding 795.2 675.8 1,459.5 85.8 74.3 158.1 discontinuing operations Gas Turbine Services - 17.5 37.2 64.3 (1.6) (2.8) (7.7) discontinuing operations ______________________________________________________ Total 812.7 713.0 1,523.8 84.2 71.5 150.4 ================================================== Comprising ______________________________________________________ - Group 676.3 598.0 1,279.9 67.6 56.7 120.2 - Joint Ventures 136.4 115.0 243.9 16.6 14.8 30.2 ______________________________________________________ Central costs (7.2) (7.0) (14.3) (including central depreciation) Share of operating profit in associates ______________________________________________________ Total 812.7 713.0 1,523.8 77.0 64.5 136.1 ================================================== Exceptional items Net interest payable Profit before taxation Note - the discontinuing operations of the Gas Turbine Services business relate to Aero engine overhaul companies which the group has decided to divest/close. The discontinuing revenues and operating loss above includes the discontinued revenues and operating profit/(loss) respectively, as shown on the face of the profit and loss account. EBITA Operating profit Interim Interim Full Interim Interim Full Year Year June June Dec June June Dec 2002 2001 2001 2002 2001 2001 $m $m $m $m $m $m Engineering & Production Facilities Group 33.8 26.1 56.8 30.9 23.5 51.4 Joint Ventures 6.1 3.3 8.5 5.8 3.1 8.1 ______________________________________________________ 39.9 29.4 65.3 36.7 26.6 59.5 ______________________________________________________ Well Support Group 11.0 14.3 30.5 10.0 13.1 28.2 Joint Ventures (0.6) 0.1 (0.3) (0.6) 0.1 (0.3) ______________________________________________________ 10.4 14.4 30.2 9.4 13.2 27.9 ______________________________________________________ Gas Turbine Services Group 13.1 9.6 20.6 12.2 9.0 19.1 Joint Ventures 8.0 8.9 17.2 7.4 8.4 16.2 ______________________________________________________ 21.1 18.5 37.8 19.6 17.4 35.3 ______________________________________________________ Total excluding 71.4 62.3 133.3 65.7 57.2 122.7 discontinuing operations Gas Turbine Services - (2.2) (3.0) (9.0) (2.2) (3.0) (10.0) discontinuing operations ______________________________________________________ Total 69.2 59.3 124.3 63.5 54.2 112.7 ========================== Comprising ______________________________________________________ - Group 55.7 47.0 98.9 50.9 42.6 88.7 - Joint Ventures 13.5 12.3 25.4 12.6 11.6 24.0 ______________________________________________________ Central costs (including (7.5) (7.3) (15.5) (7.5) (7.3) (15.5) central depreciation) Share of operating 2.8 3.4 6.5 profit in associates ______________________________________________________ Total 61.7 52.0 108.8 58.8 50.3 103.7 ========================== Exceptional items - - (13.6) Net interest payable (7.9) (11.8) (20.5) ___________________________ Profit before taxation 50.9 38.5 69.6 ======================== John Wood Group PLC Notes to the interim accounts (continued) for the six month period to 30 June 2002 2. Segmental reporting (continued) Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 Net operating assets $m $m $m Engineering & Production Facilities - Group 182.0 154.5 147.4 - Joint Ventures 36.0 38.1 40.0 ________________________________________________________ 218.0 192.6 187.4 ________________________________________________________ Well Support - Group 210.1 190.4 205.1 - Joint Ventures 2.1 4.0 2.9 ________________________________________________________ 212.2 194.4 208.0 ________________________________________________________ Gas Turbine Services - Group 130.8 103.2 117.1 - Joint Ventures 75.5 59.8 76.9 ________________________________________________________ 206.3 163.0 194.0 ________________________________________________________ Total allocated excluding 636.5 550.0 589.4 discontinuing operations Gas Turbine Services - 27.2 49.0 29.1 discontinuing operations Unallocated 7.7 13.9 (2.6) ________________________________________________________ Net operating assets 671.4 612.9 615.9 Net debt - Group (131.1) (276.8) (256.4) Net debt - Joint Ventures (42.0) (35.4) (49.5) ________________________________________________________ Net assets 498.3 300.7 310.0 ________________________________________________________ 3. Dividends Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 Net operating assets $m $m $m Dividends on non-equity shares First convertible 0.2 0.2 1.4 preference shares Second convertible 0.4 0.4 1.8 preference shares First convertible 0.6 0.7 1.4 redeemable preference shares Second convertible 0.7 1.9 3.2 redeemable preference shares Dividends on equity shares Interim 4.8 - 2.8 Appropriations - 8.5 8.5 ________________________________________________________ Total dividends and 6.7 11.7 19.1 appropriations ________________________________________________________ The interim dividend is one cent per share and will be paid on 18 October 2002. 4. Earnings per share Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 Net operating assets $m $m $m Basic EPS Earnings 26.4 14.6 21.4 Weighted average number of 316.9 287.9 288.1 shares EPS (cents) 8.3 5.1 7.4 Diluted EPS Earnings 28.3 15.4 25.1 Weighted average number of 437.4 375.6 376.1 shares EPS (cents) 6.5 4.1 6.7 Adjusted EPS Earnings 34.0 26.1 56.7 Weighted average number of 437.4 428.4 429.0 shares EPS (cents) 7.8 6.1 13.2 The calculation of earnings per share for the six months ended 30 June 2002 is based on the profit for the period, after preference dividends of $1.9m and 316,908,000 ordinary shares being the weighted average number of ordinary shares in issue during the period excluding shares held by the Group's employee share ownership trusts. The diluted number of shares takes account of the conversion of preference shares and share options where the effect of these is dilutive. In the periods to June 2001 and December 2001 the convertible redeemable preference shares are anti-dilutive and have not been taken into account in the calculation of diluted EPS. Adjusted EPS is disclosed to show the results excluding the impact of exceptional items and goodwill amortisation and reflects the conversion of all preference shares to ordinary shares throughout the period. John Wood Group PLC Notes to the interim accounts for the six month period to 30 June 2002 5. Tax The tax charge for the six months ended 30 June 2002 reflects the anticipated effective tax rate of 35.1% on profit before tax and amortisation for the year ending 31 December 2002 (June 2001 : 35.0%). 6. Acquisitions and developments In May 2002, the Group acquired a further 6.63% of Mustang Engineering Holdings Inc for a consideration of $16.1m. In late June 2002, the Group acquired Operators and Consulting Services Inc, an oilfield services company providing operations and maintenance support services to oil and gas producers in the Gulf of Mexico. In August 2002, the Group acquired Industrial Repair Services Inc a generator repair company based in New Mexico. 7. Net cash inflow from operating activities Unaudited Unaudited Interim Interim Full Year June 2002 June 2001 Dec 2001 $m $m $m ________________________________________________ Operating profit from group 43.4 35.3 73.2 undertakings Depreciation of tangible 12.2 10.0 22.5 fixed assets Impairments - - 1.0 Amortisation of goodwill 4.8 4.4 9.2 Decrease/(increase) in 3.8 (30.8) (13.6) stocks Increase in debtors (15.3) (43.0) (26.7) (Increase)/decrease in (11.5) (1.9) 0.1 amounts due from joint ventures Increase in creditors 5.6 39.8 30.9 Decrease in provisions (3.1) (1.4) (0.9) Exchange adjustments (0.7) (6.7) (5.6) ________________________________________________ 39.2 5.7 90.1 ________________________________________________ 8. Analysis of net debt 1 Jan 2002 Cash flow Exchange 30 June 2002 $m $m $m $m ____________________________________________________________ Cash 107.5 (73.9) 0.7 34.3 Deposits 21.8 (7.2) 0.6 15.2 Bank loans and (3.3) (4.8) - (8.1) overdrafts Bank loans due after (382.4) 211.3 (1.4) (172.5) one year ____________________________________________________________ Net debt (256.4) 125.4 (0.1) (131.1) ____________________________________________________________ 9. Pension commitments In 2001 the Group adopted FRS 17 'Retirement Benefits' in full. The pension liability at 30 June 2002 is as calculated at 31 December 2001 as adjusted for current service cost, interest cost and expected return on assets. No interim revaluation has been carried out and accordingly there is no actuarial gain/ loss in the statement of total recognised gains and losses. The figures for gains and losses for the full year together with the surplus/deficit at the year end will be presented in the 2002 Annual Report. John Wood Group PLC John Wood Group PLC Shareholder information Officers and advisers Secretary and Registrars Registered Office C E M Watson Lloyds TSB Registrars Scotland John Wood Group PLC 117 Dundas Street John Wood House EDINBURGH Greenwell Road EH3 5ED ABERDEEN AB12 3AX Tel: 0870 601 5366 Tel: 01224 851000 Stockbrokers Auditors Cazenove & Co Limited PricewaterhouseCoopers Credit Suisse First Chartered Accountants Boston Financial calendar 6 months ended Year ending 30 June 2002 31 December 2002 Results announced 3 September 2002 Late February/ Early March 2003 Annual General Late April 2003 Meeting Ex-dividend date 18 September 2002 Late April 2003 Dividend record date 20 September 2002 Late April 2003 Dividend payment 18 October 2002 Late May 2003 date Wood Group has an Investor Relations website which can be accessed at www.woodgroup.com

Companies

Wood Group (John) (WG.)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today