Here’s what UK shares Wood Group and Allergy Therapeutics reported today!

The Wood Group share price has plummeted following the release of fresh financials. Here are the key things coming out the UK share today.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

Investor appetite for UK shares remained pretty flat during Thursday’s session. The FTSE 100 and FTSE 250 have recorded marginal gains and falls respectively. And price action elsewhere isn’t much more spectacular either. Even the Allergy Therapeutics (LSE: AGY) share price has failed to spark despite the release of solid financials.

Allergy Therapeutics — which produces treatments for people with allergies and immunity disorders — said that operating profit was “strong” during the 12 months to April. And as a consequence it reckons that its bottom-line performance will be “well ahead of market expectations.”

The UK healthcare share said that trading had remained strong despite challenging conditions, with sales helped by a favourable euro exchange rate too. As well, Allergy Therapeutics said that expenses for fiscal 2021 would be lower than predicted. This is due to some commercial projects being pushed back into this year and Covid-19 travel restrictions hitting conference attendances.

For the current financial year Allergic Therapeutics expects net sales “to grow at low single digit levels at constant rates”. The company said that it intends to improve the quality of its product portfolio “by streamlining a number of non-differentiated older products and maintaining focus on short course subcutaneous immunotherapy (SCIT) and innovative allergy treatments.” It predicted that the ongoing coronavirus crisis will impact sales this year too.

Finally the UK share advised that expenses “are expected to increase above the historic long-term trend and above current market expectations.” This is due to those commercial projects being delayed into financial 2022, while higher research and development activity will also hit operating margins.

Oil pipes in an oil field

A sinking UK share

The John Wood Group (LSE: WG) share price hasn’t fared nearly as well as that of Allergy Therapeutics on Thursday. Indeed, the oilfield services provider has slumped 9% during the course of Thursday business.

FTSE 250 firm Wood Group has now moved to its cheapest since last November. It has almost lost all gains printed during the past 12 months, too. The UK engineering share said that like-for-like revenues fell to $3.2bn in the first half. This represents a 21% annual fall and was caused by the ongoing Covid-19 crisis. As a consequence adjusted EBITDA is tipped to fall to between $255m and $265m, down around 12% on a like-for-like basis from the first six months of 2020.

In better news Wood Group said that it had witnessed improving activity momentum during the second quarter. It added that its Consulting and Operations divisions had both moved back into growth between April and June. These units are collectively responsible for 60% of group turnover.

These improved performances helped the group’s order book improve to $6.9bn as of the end of May. This was up around 6% from December levels.

Wood Group expects trading activity to remain lower year-on-year over the course of 2020. But it anticipates a “stronger” performance during the second half. The UK share expects to return to growth versus the first half of the year and the final six months of 2020.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Businessman hand stacking money coins with virtual percentage icons
Growth Shares

Meet the growth stock that’s beaten the FTSE 100 by 4x over the past year

Jon Smith breaks down how and why a growth stock's easily beating the index average and why this could continue…

Read more »

Environmental technology concept.
Investing Articles

This FTSE 250 investment trust’s yielding close to 13%! But can it last?

Our writer takes a look at a FTSE 250 stock that’s currently yielding nearly 13%. And he considers what this…

Read more »

Close-up as a woman counts out modern British banknotes.
Investing Articles

The Entain share price jumps 14% on an upbeat report – time to consider buying?

The Entain share price is outstripping every stock on the FTSE 100 today following a positive market update. Maybe it's…

Read more »

Businessman using pen drawing line for increasing arrow from 2024 to 2025
Investing Articles

Is this bargain-priced growth stock the best share for me to buy after today’s bullish update?

This former penny stock's had a brilliant run and Harvey Jones has reaped the rewards. But does he still think…

Read more »

Hand of person putting wood cube block with word VALUE on wooden table
Investing Articles

Under £14 now, Persimmon’s share price is trading at less than half its fair value by my reckoning

Persimmon’s share price fell a lot over the past year, but I think a new home-building initiative and improved macroeconomic…

Read more »

Arrow symbol glowing amid black arrow symbols on black background.
Investing Articles

Is this FTSE 100 pharma gem now a brilliant bargain?

This FTSE 100 pharmaceutical giant has been hit by fears of US tariffs and litigation over a key product, but…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Is Warren Buffett losing his touch?

Our writer's noticed that Warren Buffett’s investment vehicle has underperformed the S&P 500 during three of the past four years.…

Read more »

Investing Articles

Non-energy minerals are the top performers in 2025. These small-cap FTSE shares are leading the charge

Mark Hartley examines which sectors are doing well in 2025 and the FTSE shares that investors should consider to benefit…

Read more »