John Wood Group PLC has announced a trading update for the year ended 31 December 2023.
Ken Gilmartin, John Wood Group CEO, said:
“We are now one year into our strategic growth journey and our results continue to show clear progress. We have delivered strong revenue and EBITDA growth, improved our underlying cash generation, grown our order book, and continue to see an acceleration in the proportion of sustainable solutions within our pipeline.
“We are confident that our actions, business model and strategy are delivering and look forward to giving a further update in March.”
Trading in line with expectations
Further momentum in strategic delivery
Continued improvement in underlying cash flows
Consulting saw strong revenue growth of c.13% to c.$0.7 billion with continued growth in our solutions across energy security, energy transition and digital consulting.
Adjusted EBITDA was c.4% higher at c.$80 million, with revenue growth partly offset by a lower margin of c.11% compared to 11.7% last year, reflecting opex investments to support future growth.
Projects saw strong revenue growth of c.10% to c.$2.5 billion, with very strong growth across oil, gas and chemicals.
Adjusted EBITDA was c.8% higher at c.$185 million with a margin around 7.5% (FY22: 7.6%), partly reflecting the impact of pass-through revenue.
Operations saw like-for-like revenue growth4 of around 7% to c.$2.5 billion. This growth reflects higher activity levels across the business, particularly in Europe and the Middle East.
Adjusted EBITDA was around 11% higher at c.$165 million, with an improved margin of around 6.5% (FY22: 6.1%) helped by good operational performance.
Investment Services revenue was up around 35% to c.$0.3 billion, reflecting higher activity in our heavy civils business, and the facilities business transferred from Projects at the start of the year.
Adjusted EBITDA was c.$70 million (FY22: $69 million), including a contribution of around $65 million from the two Turbines joint ventures (FY22: $48 million).
Central costs were around $75 million (FY22: $74 million) with cost savings mitigating inflationary pressures.
Significant contract wins in the fourth quarter included:
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