If only you’d bought…
Aberdeen-based John Wood Group (LSE: WG) provides engineering support services to the global oil and gas industry. Revenue in the first half of 2016 fell by 17%, while profits were down by 39% as the energy sector continued to experience challenging market conditions.
It’s forecasting full-year earnings (EBITA) to be 20% lower than in 2015. But according to its latest interim report, it is “encouraged by early indications of recovery” in the industry, and investors are keeping faith. In the last year, the share price has risen by almost 60%.
Be glad you didn’t…
Capita (LSE: CPI) provides outsourcing services. In the first half of 2016 it made a pre-tax profit of £285m on revenue of £2.4bn, 46% of which came from the public sector. But in September last year it issued a profit warning, saying major customers were delaying investment because of the EU referendum result. Its shares plunged by 28% and have continued to fall. Despite a rally in the last week, they remain more than 50% lower than they were this time last year.