RE: Ask yourself 1014 Nov 2025 23:41
IceCool the resident 'Wood super-ramper' cannot face reality. A short while back IceFool spouted that Wood will be cashflow positive in the first half of 2025...instead Wood is cashflow negative in the first half of 2025 to the uncomfortable tune of $404 million!
Wood will be sold that is 100% assured...
Wood's order book and revenues can be regarded as 'steady'.
Wood's asset disposals of $275 million are either banked or on the way to being banked, which is needed to shore up Wood's blance sheet and liquidity.
Wood's cash flow position is of serious concern at -$404 million as at HY2025. This continues Wood's track-record management of cash flow negative since 2017 to date. This is about as serious as it gets. Wood has not provided any forward statement on cash-flow forecast (no surpirse there), so Wood is likley to continue this trend without Sidara's cash injection of $250 million upon completion of vote in favour of Sidara's offer.
Wood's writedown of its goodwill and intangible assets to the tune of $2,214 million, as well as exceptional items of $424 million, contributed heavily to Wood's loss of $2,776 million for the FY2024. This was far worse than anyone expected...a $2.8 billion loss! This is a 'clean opinion' so is entirely accurate and can be relied upon i.e. fairly presented and free from material misstatements. The only 'beneficiary' of that may be Sidara, as it helps support their offer on the table.
Wood's net debt position continues to grow year on year. Wood's net debt (excludes leases) is $1,073 million as at HY2025. Importantly, Wood's average net debt (excludes leases) throughout the HY2025 was $1,138 million....$1.1 billion!
Given Wood's track record of growing net debt now at $1 billion, poor cash-flow managment (since 2017 to date) and other factors - it is now obvious that Wood had to off-load assets under its asset disposal program in order to shore up its balance sheet and provide liquidity.
Sidara's offer of 30p represents a 'fair' price given Wood's current share price is 18p, and Wood's current financial situation.
The fact is that without a rival bidder, Sidara's offer will be accepted at 30p per share. The alternative will virtually wipe out current shareholders.
The best Wood investors can hope for is that a rival bidder makes an offer before 11 November, and an RNS is released to that affect. Without such an offer it is Sidara's offer of 30p and $450 million all day long and twice on Sundays. Bidders, roll up, roll up wherever you are!!!
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