SHARES in
In a statement yesterday, the Londonlisted group said its cashflow would return to the black from 2024 onwards, with recent exchange rate movements carving out a revenue loss of around
Volatile markets have also spelled an around
Bosses at the group now expect adjusted ebitda to be "flat in the nearer term" as the company reinvests its cash to "secure growth".
Shares sank more than 16 per cent yesterday afternoon on the news. The group has lost a third of its stock price in the year to date.
Wood said it would seek to improve its margins in the medium term after "historical underperformance", citing project discipline and low-risk contract work as areas of focus.
CEO
"We have addressed legacy issues and our strong balance sheet will allow us to deal with the defined schedule of resulting cash outflows," Gilmartin said.
"Our strategy will deliver returns for our shareholders and today we have set out new financial targets, including to grow ebitda by mid to high single digit constant annual growth rate over the medium term, with momentum building over time as our strategy delivers."
On top of cashflow woes and the financial impacts of the economic downturn sweeping the globe, Wood and subsidiary company
Enterprise filed a lawsuit against
Wood inherited the litigation when it bought AFWE for £2.2bn in 2017.
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