Analyst consensus and coverage

Analyst Consensus

  2019
Consensus
2019
Low
2019
High
2020
Consensus
2020
Low
2020
High
Revenue ($m) 10,547 10,438 10,768 11,088 10,810 11,419
Adjusted EBITDA ($m) 919 889 948 998 931 1,056
Operating profit (before exceptional items)1 ($m) 447 413 491 548 457 637
Profit before tax ($m) 226 145 318 379 232 465
Adjusted diluted EPS 53.2c 46.0c 64.5c 66.0c 52.1c 72.8c



Last updated on 26 July 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. At the Group level the results from joint ventures will be accounted for in line with IFRS using the equity method and will no longer be reported on a proportionally consolidated basis. Wood’s primary reporting metrics will be:

    - Revenue, aligned with the IFRS definition, i.e. 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 $570m 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: JP Morgan Cazenove, Barclays, Goldman Sachs, RBC, Bank of America Merrill Lynch, Morgan Stanley, UBS, Redburn, Jefferies and HSBC.

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.