Analyst consensus and coverage

Analyst Consensus

  2019
Consensus
2019
Low
2019
High
2020
Consensus
2020
Low
2020
High
Revenue ($m) 10,548 10,450 10,696 11,063 10,932 11,335
Adjusted EBITDA ($m) 927 877 970 1,001 926 1,085
Operating profit (before exceptional items)1 457 406 526 541 449644
Profit before tax 224 138 372 351 211 449
Adjusted diluted EPS 55.6c 45.3c 76.2c 66.3c 52.2c 83.7c

Last updated on 21 June 2019

  1. We are simplifying our reporting metrics for reporting periods ended 30 June 2019 onwards. These changes align our principal reporting metrics with IFRS measures and facilitate comparison across peers.  There will be no reduction in the level of accounting disclosure at the Wood or business unit level. Our primary reporting metrics will align with IFRS definitions of revenue and profit, that is:

    - Revenue on an equity consolidated basis, excluding joint ventures
    - Operating profit (pre-exceptional items)

    In addition, Adjusted EBITDA (pre-exceptional items, including joint ventures) will be presented as an additional non-statutory /‘non-GAAP’ measure of profit. This will be presented at the Group and Business Unit level to report underlying financial performance and facilitate comparison with peers.
    Adjusted Diluted EPS will also be presented, defined as earnings before exceptional items and amortisation relating to acquisitions, net of tax, divided by the weighted average number of ordinary shares in issue during the period. In contrast to previous reporting, the measure will be stated before amortisation arising from acquisitions only and not amortisation relating to other intangibles such as software costs
  2. IFRS 16 Leases became effective 1 January 2019. The most significant change for Wood is the accounting for property leases.  Rental charges which were previously recorded in operating costs in respect of these leases will now be replaced with depreciation and an interest charge. We have chosen to apply the modified retrospective approach on adoption of IFRS 16 and using this approach there is no restatement of 2018 comparatives in 2019. We anticipate that 2019 adjusted EBITDA will increase by c$170m and adjusted EBITA will increase by c$30m. In the balance sheet a lease liability of around $650m will be recognised.
  3. Consensus includes forecasts updated after Wood’s 2018 Full Year Results announcement on 19 March 2019 and includes forecasts that reflect our revised reporting metrics (set out in note 1) and the implemenation of IFRS 16. Consensus therefore includes the following organisations: Bank of America Merrill Lynch, Morgan Stanley, UBS, Redburn, Jefferies, HSBC and Berenberg.

Analyst Coverage

FirmAnalystE-mail
Bank of America Merrill Lynch Vlad Sergievskii vlad.sergievskii@baml.com
Barclays Capital Mick Pickup mick.pickup@barclayscapital.com
Berenberg Henry Tarr henry.tarr@berenberg.com
Bernstein Nicholas Green nicholas.green@bernstein.com
CanAccord Genuity Alex Brooks alex.brooks@canaccordgenuity.com
Citigroup Michael Alsford michael.alsford@citi.com
Exane BNP Paribas James Evans james.evans@exanebnpparibas.com
Goldman Sachs Sahar Islam sahar.islam@gs.com
HSBC Tarek Soliman tarek.soliman@hsbc.com
Investec Thomas Rands thomas.rands@investec.co.uk
Jefferies LLC Mark Wilson mark.wilson@jefferies.com
J.P. Morgan Cazenove James Thompson james.a.thompson1@jpmorgan.com
Morgan Stanley Lillian Starke lillian.starke@morganstanley.com
Numis Securities Ltd James Hubbard j.hubbard@numis.com
RBC Victoria McCulloch victoria.mcculloch@rbccm.com
Redburn Ltd Michael Rae michael.rae@redburn.com
UBS Amy Wong amy.wong@ubs.com

John Wood Group PLC is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding John Wood Group PLC's performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of John Wood Group PLC or its management. John Wood Group PLC does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.