London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Thanks Mary
Agreed, it's an Apollo rehash. I think Sidara are hoping that the passage of time means JW is valued at less. 205 to test the waters, then probably something north of that, c. 220. Would be surprised if they extended to 240.
Happy with price/profit as it stands, 220p would be a bonus.
Good w/e.
Afternoon Swanley
Nice pop here this week. All ready for a repeat of the Apollo walkaway and the inevitable price drop buying opportunity. Happy to be wrong.
If the BOD wanted N of 240p for Apollo I cannot see Sidara trumping that. If they were to do that they would have come in with a higher initial opener.
Just an opinion.
Wow. Insightful. Incredible research-backed analysis there. Justifies their exorbitant salaries.
Do they really get paid for such insight ???
(Sharecast News) - Analysts at Berenberg raised their target price on engineering and consulting business John Wood Group from 150.0p to 220.0p on Friday following the group's first-quarter trading statement that came hot on the heels of news that it had rejected a takeover bid at 205.0p per share.
John Wood said Q1 revenues were lighter but Berenberg also noted that encouragingly, underlying earnings had grown 4% despite the lower sales. Further growth was also expected as 2024 guidance of high-single-digit EBITDA growth was confirmed.
However, Berenberg said working capital movements were likely to see year-end net debt higher than previously thought.
The German bank added that a recent takeover approach from Sidara had been the near-term driver of performance, and it believes "a significant upside risk remains" due to the potential for further bids.
"However, if Sidara does not ultimately make an offer then we could see a large sell-off in the shares. We assume a 50:50 probability between a follow-up bid around the 240.0p level and no bid materialising, which underpins our price target of 200.0p," said Berenberg, which reiterated its 'hold' rating on the stock.
"We make minor changes to our estimates, nudging up our margin assumptions given the encouraging start to the year, but increase our net-debt estimates."
Thanks very much for the links
Todays Times says that Sidara sold their $1.4B stake in Worley in April, to fund their takeover of Wood. They say that Sidara have been looking at Wood for some time. This suggests they are serious players.
Sidara must have expected Wood to rebuff an offer of 205p, and since there were no surprises in this mornings update, I think they will return with a second offer. I thinks it’s unlikely that they will go to 240p, or over, unless a second bidder emerges.
I also think the institutions will be tiring of the time it is taken Wood to get the business firing on all cylinders, and may be more willing to accept a lower offer than Apollo proposed last year. I would love to be proved wrong, but I don’t think the current management team can cut the mustard on turning the business round.
Just top sliced half of my holding for a very decent return after holding for just a year.
I completely agree. Another poor, jam tomorrow update IMO. The timing of that potential bid has been extremely fortuitous.
I am jealous :) lol.
Not tempted to rejoin anywhere near this SP level, but having missed the boat in the most recent event, it probably means you have another leg up any second now :) GLA.
I dialled into the post-results presentation. Ken Gilmartin used the now overworked phrase 'laser focused' on cash generation which continues to elude them. Most of the questions from the analysts and mine were about their inability to get cash into the balance sheet (I don't think they really understand the way their working capital develops over their different contracts. Net debt at year end 2024 will be the same after disposals. Gilmartin promised a reduction in debt by the end of 2025 but duct the question of whether that that would be reduced relative to the ebitda following those disposals. I think the situation is improving and if will be visible when the Q4 results are published but they are not worth the current share price without the prospect of bid. They should accept a bid of 225 - 240p and put the once great company out of its misery.
But not buy typo
Buy for the bid interest of yesterday, which leaked out in the past few days this would have headed back below 140p. We are where we are and could revisit the lows unless the offer is upped.
There is not much I can see in the TU to suggest that the company is currently under-valued. Unfortunately the BOD aren't delivering on the value they seem to think is within the company, and it would be hard to defend against a reasonable offer. Perhaps that is what they are trying to do, smoke out other bidders. Question is what are Wood group worth?!
Morning, I guess all we can say is there was no bad news in the RNS, and this has always been a 'conservative' company.
Certainly a mixed bag. The share price is still historically low even given the rise yesterday. There aren't many players in this market and other bidders may be tempted - I'll certainly be tempted to buy more if the price drops on this news.
More jam than Hartleys. About time the tune was changed. Not impressed but who knows with this one. Will trade the move.
Last year we had a bid from Apollo, and we all know what happened there.
Now we have an 'unsolicited, preliminary and conditional proposal' from Sidara @ 205 p which was quickly rejected. Very much a low-ball offer which they must have known would be rejected.
So, is Wood now in play? Do we get an increased offer from Sidara? Does todays RNS force the hand of ''another'' to make a bid? Now that would be interesting, and it's not impossible. A similar situation happened with RPS a few years back - laughed all the way to the bank on that one.
Could be a very interesting few weeks ahead.
IMO next bid from Sidara is coming! Apollo tried 5 times before giving up so expect Sidara to come back. Probably 220p.
@ Rhinocol & Scott double act.
FWIW
reread the Re WG. thread and the goading of those who were buying on the falls and now the posts you make today.
My positions built up to 60k holding at one point so of course I trimmed on the way up.
Now holding 38k still with a minus average cost (5 figures), so 38k holding and cash in excess of 5 figures for trading WG. over several years.
For the record I trimmed some more today at 197.
Super opportunity to buy back tomorrow if the results go pear shaped or sell more if not.
Have a great evening.
Mx
@ saddo scott
At 127p you said this
-----
RE: WG2 Apr 2024 17:05
there will be no value for shareholders
gilmartin and his mates just sitting back taking the coin, why accept 240p and be out of a job
filling his lard **** pocket whilst there is cash in the till
huge debt and 1 more legacy claim and it’s goodnight vienna here
his sky interview was a disgrace, side stepped each of ian kings questions with a barrage of meaningless figures
------
Really glad I didn't trim/sell as per Mary yesterday morning, would have cost me a fortune !!