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WOOD GROUP (JOHN) PLC: Wood Group interim results six months ended 30 June 2014

 WOOD GROUP (JOHN) PLC: Wood Group interim results six months ended 30 June 2014 Half year results for the six months ended 30 June 2014              Benefitting from strong US shale activity; overall growth outlook for 2014 unchanged  Wood Group is an international energy services company with over $7bn sales. The Group is built on our Core Values and has two reporting segments - Wood Group Engineering and Wood Group PSN - providing a range of engineering, production support and turbine services to the oil & gas, and power sectors.  Financial Summary  * Total revenue1 of $3,801.2m up 10% and Total EBITA in line with H1 2013 at        $243.9m       * Continue to anticipate full year Total EBITA to be in line with     expectations and up on 2013       * Revenue from continuing operations on an equity accounting basis up 16% at     $3,224.4m (2013: $2,788.7m)       * Profit from continuing operations on an equity accounting basis before tax     and exceptional items up 15% at $182.4m (2013: $159.0m)       * Adjusted diluted EPS of 44.4 cents (2013: 44.5 cents)       * Interim dividend of 8.9 cents (2013: 7.1 cents) up 25%     Segmental Highlights  Wood Group Engineering    * EBITA down 9%, reflecting a lower contribution from Upstream partially     offset by good performance in Subsea & Pipelines and Downstream       * Increased engagement in early stage work; remain well positioned to     influence and reduce overall project costs       * Acquisition of Agility Projects for NOK 1,008m (c.$164m) in July 2014     positions us well in key Norwegian market     Wood Group PSN  Production Services    * Strong EBITA growth of 47% driven by performance in US shale, including     Elkhorn acquired in 2013       * Robust North Sea business benefitting from contract renewals and growth in     Pyeroy acquired in 2013       * International position reinforced with recent multi-year award in Malaysia     adding to work commenced in Papua New Guinea     Turbine Activities    * Breakeven at the EBITA level reflecting performance in Turbine JVs together     with losses on the Dorad contract in the period       * EthosEnergy JV with Siemens completed in May       * Significant improvement expected in H2, including loss on Dorad to be     largely recovered     Bob Keiller, CEO commented:  "We have seen strong performance in our PSN Production Services activities in the US shale market, offset by an anticipated lower contribution from Upstream Engineering and weaker than expected performance in our Turbine Activities. Overall, the outlook for the Group for the year remains unchanged from the position outlined at our December 2013 trading update; we continue to anticipate full year EBITA to be in line with expectations and up on 2013, led by growth in PSN Production Services."  Enquiries:  Wood Group  Andrew Rose - Group Head of Investor Relations  Carolyn Smith - External Affairs Manager 01224 851 000  Brunswick  Patrick Handley 020 7404 5959  Nina Coad  There will be an analyst and investor presentation at the Lincoln Centre, 18 Lincoln's Inn Fields, WC2A 3ED at 09.00. Early registration is advised from 08.30.  A live webcast of the presentation will be available from www.woodgroup.com/ investors. Replay facilities will be available later in the day.  1See detailed footnotes following Financial Review section of the half year results. Total Revenue and Total EBITA include the contribution from joint ventures and activities classified as discontinued, which includes the results of the businesses that transferred to the EthosEnergy joint venture prior to its formation in May.  Strategic Review  H1 2014 Trading performance                          Interim  Interim         %                                                     Jun 2014 Jun 2013                                                                                    Change                                                           $m       $m                                                                                         Total Revenue                                        3,801.2  3,447.1     10.3%                                                                              Total EBITA1                                           243.9    243.2      0.3%                                                                              EBITA Margin                                            6.4%     7.1%  (0.7pts)                                                                              Revenue from continuing operations on an equity      3,224.4  2,788.7     15.6% accounting basis                                                                                                                                             Profit from continuing operations before tax and       182.4    159.0     14.7% exceptionals on an equity accounting basis                                                                                                                   Basic EPS                                              38.5c    43.5c   (11.5%)                                                                              Adjusted diluted EPS2                                  44.4c    44.5c    (0.2%)  Note: The commentary below on trading performance is presented based on proportionally consolidated numbers, which is the basis used by management to run the business. Total Revenue and Total EBITA include the contribution from joint ventures and activities classified as discontinued, which includes the results of the businesses that transferred to the EthosEnergy joint venture prior to its formation in May.  Against a market backdrop of increased focus on efficiency by oil & gas operators generally and the consequential impact on investment in certain areas, whilst total revenue was up 10% at $3.8bn, both total EBITA and adjusted diluted EPS were in line with the first half of 2013, at $243.9m and 44.4 cents respectively.  Total EBITA reflects a varied performance across the Group. In Wood Group Engineering revenue increased by 4% however EBITA decreased by 9% and EBITA margin fell by 1.5pts to 10.7%. Good performance in Subsea & Pipelines and Downstream was more than offset by a lower contribution from Upstream which saw growth in onshore activity but was impacted by a lower contribution from offshore projects and Canada. Wood Group PSN's core Production Services activities delivered strong growth, with revenue up 22% and EBITA up 47%, primarily attributable to performance in the Americas led by US shale. Turbine Activities broke even at the EBITA level reflecting a disappointing performance in Turbine JVs, together with losses on the Dorad contract in the period.  We continue to augment organic growth with acquisitions and have a strong pipeline of opportunities. In the first half we acquired Meesters, a specialist fabrication business in the Bakken shale region, Cape Software, a Texas based training and process simulation company, and Sunstone, a Calgary based pipeline consultancy. In July we announced the acquisition of Agility Projects AS ("Agility") in Norway for NOK 1,008m (c.$164m), which adds offshore greenfield and brownfield platform engineering capability in the Norwegian sector of the North Sea and positions us well for future projects in a significant Norwegian market. Completion is expected in Q3 2014.  In February, we highlighted some of the actions being taken to address underperformance in the less differentiated parts of our Turbine Activities. Our JV with Siemens, EthosEnergy, completed on 6 May and is in the early stages of integration. 2014 will be a more challenging period for EthosEnergy than we had anticipated although we remain confident that the combination of the two businesses, led by a strong management team, will improve performance in our less differentiated turbine activities over the longer term and that the previously indicated synergies of around $15m can be delivered.  Our balance sheet remains strong. The working capital outflow for the first half of the year partly reflects the typical seasonal movement and we expect a significant improvement in the second half. In May, we reached agreement to issue $375m of unsecured senior notes in the US private placement market with drawdown in August and November 2014. These will be at a mix of 7, 10 and 12 year maturities at an average fixed rate of 3.74% which we consider to be a very competitive rate highlighting the strong level of demand in the market generated by this placement. The issue will further diversify our sources of funding, extend the maturity profile of our debt and results in a greater proportion of fixed rate debt finance at favourable rates. This issue does not change our net debt to EBITDA ratio guidance of between 0.5x to 1.5x and typically less than 1.0x.  In February, we signaled our confidence in the longer term outlook for the Group and committed to increasing the dividend in 2014 by around 25% and our intention to increase the US dollar value of dividend per share from 2015 onwards by a double digit percentage. We have declared an interim dividend of 8.9 cents, an increase of 25%, which will be paid on 25 September 2014.  Overall, the outlook for the Group for the year remains unchanged from the position outlined at our December trading update. We continue to anticipate full year EBITA to be in line with expectations and up on 2013, led by growth in our Production Services activities in Wood Group PSN.  Wood Group Engineering  We provide a wide range of market-leading engineering services to the upstream, subsea & pipelines, downstream & industrial and clean energy sectors. These include conceptual and front end engineering and design (FEED) studies, engineering, project & construction management (EPCM) and control system upgrades.                                         Interim            Interim               %                                                                                                                     Jun 2014           Jun 2013          Change                                                                                                                           $m                 $m                                                                                               Revenue                              1,019.8              982.6            3.8%                                                                              EBITA                                  108.8              119.8          (9.2%)                                                                              EBITA margin                           10.7%              12.2%        (1.5pts)                                                                              People3                               10,500             10,500               -  In Wood Group Engineering, revenue increased by 4% however EBITA decreased by 9% and EBITA margin fell by 1.5pts to 10.7%. Good performance in Subsea & Pipelines and Downstream was more than offset by a lower contribution from Upstream which saw growth in onshore activity but was impacted by a lower contribution from offshore projects and Canada.  The Upstream business represents around 40% of divisional revenue. Following the substantial completion of our scope on Mafumeira Sul and Ichthys in 2013, we have seen a slower pace in the award of significant detailed offshore engineering contracts to replace these projects. We are active on detailed engineering for SMOE on Ivar Aasen in the North Sea working alongside Agility Projects, Husky White Rose in Eastern Canada and Anadarko Heidelberg in the Gulf of Mexico. We are currently engaged in more early stage projects than in 2012 and 2013 including FEED work on Hess Stampede and study work on Anadarko Shenandoah. We believe our involvement during the early phases can significantly improve overall project costs and is an encouraging indicator of customers turning to engineering solutions to improve capital efficiency.  Subsea & Pipelines represents around 40% of divisional revenue. Good activity in Europe, the Middle East and the Caspian has contributed to profitability in our subsea business. In June, we were awarded the $60m contract for stage two of Shah Deniz from BP in Azerbaijan, having provided engineering support throughout the earlier definition and appraisal phases. We have also recently booked awards from Tullow in Ghana and Southstream in Europe. Our onshore pipelines business continues to perform well, benefitting from US shale related pipeline work with customers including Shell and Dow. We see good prospects in Saudi Arabia and in Canada, where we added to our capability with the acquisition of Sunstone in Calgary.  Downstream, process & industrial activities accounted for around 20% of revenue. We have seen some benefit of brownfield and greenfield work in refining and chemicals markets, in part due to the continued impact of lower gas prices in the US.  Outlook  We continue to anticipate a reduction in Engineering EBITA in the full year 2014. We remain well positioned to unlock value for clients and influence overall project costs through the delivery of high quality engineering, with our recent acquisition of Agility Projects adding to our capabilities in the Norwegian greenfield and brownfield market. We are still confident that the Upstream market will strengthen in the longer term, with current early stage projects providing an encouraging indicator of future activity.  Wood Group PSN  Production Services  We provide life of field support to producing assets through brownfield engineering & modifications, production enhancement, operations and maintenance, training, maintenance management and abandonment services.                                         Interim           Interim                %                                                                                                                     Jun 2014          Jun 2013           Change                                                                                                                           $m                $m                                                                                                Revenue                              2,341.6           1,913.7            22.4%                                                                              EBITA                                  163.0             111.1            46.7%                                                                              EBITA margin                            7.0%              5.8%           1.2pts                                                                              People                                30,000            26,300            14.1%  Wood Group PSN's Production Services activities delivered strong growth, with revenue up 22% and EBITA up 47%. This increase is primarily attributable to performance in the Americas led by typically higher margin US shale activity, including the benefit of the Elkhorn business acquired in December 2013.  The Americas is now the largest contributing region to Production Services EBITA. Our US onshore activities, which are predominantly shale related, have contributed over $500m of revenue in the year to date. We now have over 5,000 people across the US Shale regions engaged in site preparation, fabrication, installation, construction, commissioning, operations and maintenance. Elkhorn is performing very strongly and is benefitting from infrastructure construction work in the core Permian basin. Our capabilities in US shale were further strengthened in the first half of 2014 with the addition of Meesters, a specialist fabrication business in the Bakken region and the establishment of safety and technical training facilities in the Eagle Ford.  Our North Sea business has remained robust and is benefitting from growth in Pyeroy, acquired in July 2013. In the first half, we secured a five year renewal of the Talisman Sinopec engineering and maintenance services contract, an extension to our operations and maintenance contract with Chevron North Sea and also a new contract with independent Iona Energy. The increased focus on operator efficiency, with the UK oil and gas sector's costs rising an estimated 15% last year, prompted us to cut contractor rates by 10% in May, reducing our overall cost to the customer and positioning us well for future opportunities.  Internationally, our managed exit in Oman is progressing; the underlying performance is broadly breakeven and we expect to exit the contract fully by July 2015. In Papua New Guinea we have commenced brownfield engineering and procurement support work for ExxonMobil's operations and expect activity in this area to increase in the second half of the year. In July, we secured a multi-year award for EPCM services in Malaysia.  Outlook  For Wood Group PSN Production Services, strong growth in US shale including a significant contribution from Elkhorn and robust performance in the mature North Sea, together with cessation of losses in Oman, is expected to lead to good growth overall in 2014.  Turbine Activities  We provide industrial gas turbine and rotating equipment services and solutions for clients in the oil & gas and power markets.  Turbine Activities                      Interim       Interim               %                                                                                                                         Jun 2014      Jun 2013          Change                                                                                                                            $m            $m                                                                                             Turbine JVs                               422.3         440.9          (4.2%)                                                                            Dorad/GWF                                  17.5         109.9             n/m                                                                            Total Revenue                             439.8         550.8         (20.2%)                                                                            Turbine JVs                                17.3          35.7         (51.5%)                                                                            Dorad/GWF                                 (17.2)          4.9             n/m                                                                            Total EBITA                                 0.1          40.6             n/m                                                                            Total EBITA Margin                         0.0%          7.4%             n/m                                                                            People                                    2,700         3,200         (15.6%)  Our Turbine Activities comprise: the joint venture with Siemens, EthosEnergy ("Ethos"), Rolls Wood Group ("RWG") and TransCanada Turbines ("TCT") (together "Turbine JVs"); and for 2014 the Dorad EPC contract. Turbine JVs includes the proportionally consolidated results of: RWG and TCT from 1 January to 30 June, the former Wood Group GTS business now included in Ethos from 1 January to 5 May, and Ethos from 6 May to 30 June. Dorad/GWF includes the results of Dorad in 2014 and Dorad and GWF in 2013.  In Turbine JVs, revenue fell 4% and EBITA fell 52%. This was due to performance in the Wood Group businesses now included in Ethos, primarily the impact of lower EPC activity. The outlook for Ethos in 2014 is more challenging than previously anticipated, reflecting the impact of project delays in Latin America, the Middle East and North Africa and significantly lower EPC backlog. We also saw a lower contribution from our other joint ventures including the impact of deferrals, however current backlog largely supports our expectation of a recovery in the second half.  Customer handover on the Dorad EPC contract was delayed to the second half of May which contributed to the recognition of increased costs and led to a year to date loss, albeit the contract remains profitable overall. We are in discussion with the customer around the agreement of change orders and continue to anticipate that the financial position will be largely recovered during the remainder of 2014.  As part of the outcome of a review in 2013, the decision was taken to lower the risk profile of the Group and it is our intention not to undertake further fixed price EPC contracts of equivalent scale to Dorad.  Outlook  Performance in Turbine Activities is typically weighted to the second half and we expect a significant improvement throughout the remainder of 2014 including substantial recovery of the financial position on Dorad. In Ethos, we are taking actions to reduce costs and expect to deliver net synergies of around $15m by the third year.  Overall, we anticipate that Turbine Activities will deliver lower EBITA in 2014 than in 2013.  Financial Review  Trading performance  Trading performance is presented on a proportionally consolidated basis, which is the basis used by management to run the business. Total Revenue and Total EBITA include the contribution from Joint Ventures and activities classified as discontinued. A reconciliation to Operating Profit from EBIT is presented below. A reconciliation to statutory measures of revenue and operating profit from continuing operations excluding joint ventures is included in note 2 to the interim financial statements.                                                   Interim    Interim Full Year                                                                                                                                   Jun 2014   Jun 2013  Dec 2013                                                                                                                                         $m         $m        $m                                                                                   Total Revenue                                  3,801.2    3,447.1   7,064.2                                                                                  Total EBITA                                      243.9      243.2     533.0                                                                                  EBITA margin %                                     6.4%       7.1%      7.5%                                                                                  Amortisation - software and system               (19.4)     (20.5)    (44.5)      development                                                                                                                                                  Amortisation - intangible assets from            (30.9)     (28.3)    (57.6)      acquisitions                                                                                                                                                 EBIT                                             193.6      194.4     430.9                                                                                  Net finance expense                               (9.5)      (7.8)    (18.6)                                                                                  Profit before tax and exceptional items          184.1      186.6     412.3                                                                                  Taxation before exceptional items                (50.5)     (51.3)   (113.4)                                                                                  Profit before exceptional items                  133.6      135.3     298.9                                                                                  Exceptional items, net of tax                     16.3       26.6       1.6                                                                                  Profit for the period                            149.9      161.9     300.5                                                                                  Basic EPS (cents)                                 38.5c      43.5c     81.4c                                                                                  Adjusted diluted EPS (cents)                      44.4c      44.5c     98.6c      The review of our trading performance is contained within the Strategic Review.  Reconciliation to operating profit                                                         Interim            Interim                                                                                                                                     Jun 2014           Jun 2013                                                                                                                                           $m                 $m                                                                               EBIT                                                   193.6              194.4                                                                              Impact of JV profit included pre vs. post               (6.5)               (6.8) tax                                                                                                                                                          Impact of discontinued activities                        4.3             (21.2) (pre-exceptionals)                                                                                                                                           Operating Profit per Group Income Statement            191.4              166.4  Financial performance  The financial performance of the Group, adjusting for acquisitions and on a constant currency basis, is shown below. The 2013 results have been restated to include the results of acquisitions made in 2013 (Elkhorn, Pyeroy, Intetech) as if they had been acquired on 1 January 2013 and also to apply the average exchange rates used to translate the 2014 results. The 2014 results have been restated to exclude the results of acquisitions made in 2014 (Meesters, Cape, Sunstone).  Unaudited                                Interim   Interim    Interim   Interim                                            Jun 2014  Jun 2014   Jun 2013  Jun 2013                                            Total     Total      Total     Total                                       Revenue $m  EBITA $m Revenue $m  EBITA $m                                                                               Wood Group Engineering                   1,015.2     107.2      985.8     119.8                                                                              Wood Group PSN - Production Services     2,333.8     162.2    2,168.4     133.7                                                                              Wood Group PSN - Turbine Activities        439.8       0.1      556.1      41.4                                                                              Central costs                               -        (27.9)      -         (29.1)                                                                              Pro forma                                3,788.8     241.6    3,710.3     265.8                                                                              Acquisitions                                12.4       2.3     (228.0)     (22.8)                                                                              Constant Currency                            0.0       0.0     (35.2)       0.2                                                                              Total Revenue and EBITA as reported      3,801.2     243.9    3,447.1     243.2  Amortisation  The amortisation charge for the half year of $50.3m (2013: $48.8m) includes $30.9m (2013: $28.3m) of amortisation relating to intangible assets arising from acquisitions. Of this amount $14.2m (2013: $19.6m) is in respect of the PSN acquisition and $10.7m relates to the acquisitions of Elkhorn and Mitchells. Amortisation in respect of software and development costs was $19.4m (2013: $20.5m) and this largely relates to engineering software and ERP system development. We currently anticipate that the amortisation charge for the full year will be around $104.0m (2013: $102.1m), of which $62.0m (2013: $57.6m) relates to intangibles arising from acquisitions.  Included in the amortisation charge for the half year above is $0.9m (2013: $0.2m) in respect of joint ventures.  Net finance expense  Net finance expense is analysed further below.                                           Interim      Interim     Full year                                                                                                                 Jun 2014     Jun 2013      Dec 2013                                             $m           $m            $m                                                                          Interest on debt                           4.9          4.2           8.5                                                                        Bank fees and charges                      5.2          4.2          11.2                                                                        Total finance expense                     10.1          8.4          19.7                                                                        Finance income                            (0.6)        (0.6)         (1.1)                                                                        Net finance expense                        9.5          7.8          18.6  Interest cover4 was 25.7 times (June 2013: 31.2 times). In May, we reached agreement to issue $375m of unsecured senior notes in the US private placement market with drawdown in August and November 2014. These will be at a mix of 7, 10 and 12 year maturities at an average fixed rate of 3.74%. Included in the above are net finance charges of $0.5m (2013: $0.4m) in respect of joint ventures.  We currently anticipate the full year interest cost to be just under $25.0m, including the impact of the US private placement drawdown.  Exceptional (income)/expense                                                Interim     Interim    Full year                                            Jun 2014    Jun 2013     Dec 2013                                                  $m          $m           $m                                                                              Venezuela settlement                         (58.4)           -            -                                                                           Integration and restructuring charges           7.5           -         15.9                                                                           Lease termination income                          -       (15.3)       (15.1)                                                                           Onerous contract                                  -           -         28.0                                                                           Bad debt recoveries                               -        (2.0)        (6.0)                                                                           Transaction related costs                      23.0           -         11.1                                                                           Gain on divestment of Well Support                -       (14.0)       (34.4) division                                                                                                                                               Total exceptional items pre-tax               (27.9)      (31.3)       (0.5)                                                                           Tax on exceptional items                       11.6         4.7        (1.1)                                                                           Total exceptional items net of tax            (16.3)      (26.6)       (1.6)  In January 2014, the Group finalised a settlement agreement in respect of a contract taken over by PDVSA in 2009. A gain of $58.4m has been recorded in the income statement. $5.5m of the settlement relates to a minority shareholder.  Further restructuring charges of $7.5m have been recorded in the period in relation to the decision made in 2013 to exit certain markets in the Wood Group PSN Production Services Americas business.  Transaction related costs of $23.0m are in respect of Ethos in 2014 and are discussed below.  EthosEnergy Transaction  On 6 May 2014, the Group's joint venture with Siemens, EthosEnergy ("Ethos") was formed. Whilst Wood Group has a 51% shareholding in the new entity, significant decision making requires unanimous consent from both shareholders. Wood Group does not have control and the business is therefore accounted for as a joint venture. The initial transaction was accounted for as follows:                                                             $m         $m                                                                           Book value of Wood Group net assets transferred to                     541.8 Ethos                                                                                                                                                  Cash received and receivable                                          (157.4)                                                                           Wood Group net assets disposed                                         384.4                                                                           Value of Wood Group's investment in Ethos                             (384.4)                                                                                                                                                            -                                                                            Wood Group costs associated with the creation of Ethos                                                                                                 Cumulative foreign exchange losses recycled through the       7.0            income statement                                                                                                                                       Transaction related costs                                    16.0       23.0                                                                           Net impact of transaction included in exceptional                       23.0 items                                                                         The value of Wood Group's investment in Ethos represents the fair value of the net assets disposed.  In respect of cash received and receivable of $157.4m, under the joint venture agreement Wood Group received a 51% ownership interest in Ethos, and Ethos was required to pay Wood Group $70.0m, of which $21m was paid in May 2014.   In addition, an estimated $87.4m will be paid by Ethos in respect of post close adjustments for items including working capital and indebtedness at the date of formation.  Foreign exchange losses of $7.0m which were recorded in the currency translation reserve in prior periods in relation to the businesses transferred into Ethos have been recycled through the income statement as required by IAS 21.  Transaction costs include legal fees and other costs associated with the setup of the joint venture, accelerated share based charges and a provision for liabilities which the Group has retained as part of the joint venture agreement.  Taxation  The effective tax rate on profit before tax and exceptional items including joint ventures and discontinued operations on a proportionally consolidated basis is set out below.                                              Interim     Interim   Full year                                          Jun 2014    Jun 2013    Dec 2013                                                                 $m          $m          $m                                                                        Profit from continuing operations           184.1       186.6       412.3 before tax (pre-exceptional items)                                                                                                               Tax charge (pre-exceptional items)           50.5        51.3       113.4                                                                        Effective tax rate on continuing             27.4%       27.5%       27.5% operations (pre-exceptional items)                                         The tax charge above includes $6.1m in relation to joint ventures (June 2013: $6.4m).  Going forward we expect the effective tax rate, to remain around 27.5% in the medium term.  The effective tax charge under equity accounting is 25.2%. The pre tax profit number used to compute this figure includes the post tax contribution from joint ventures and as such we do not consider this to be a meaningful measure.  Earnings per share  Adjusted diluted EPS for the six months to 30 June 2014 was 44.4 cents per share (2013: 44.5 cents). The average number of fully diluted shares used in the EPS calculation for the period was 374.6m (June 2013: 374.7m).  Adjusted diluted EPS adds back all amortisation. If only the amortisation related to intangible assets arising on acquisition is adjusted and no adjustment is made for that relating to software and development costs, the figure for June 2014 would be 40.6 cents per share (June 2013: 40.6 cents).  Dividend  In February, we signaled our confidence in the longer term outlook for the Group and committed to increasing the dividend in 2014 by around 25%.  In line with our policy, an interim dividend of 8.9 cents per share (2013: 7.1 cents) has been declared which will be paid on 25 September 2014, representing an increase of 25%. The dividend is covered 5.0 times (June 2013: 6.3 times) by adjusted earnings per share.  The Group continues to adopt a progressive dividend policy taking into account its capital requirements, cash flows and earnings. Since IPO the Group has increased the dividend by an equivalent of 20% per annum compound.  Cash flow and net debt  The cash flow and net debt position below has been prepared using equity accounting for joint ventures, and as such does not proportionally consolidate the assets and liabilities of joint ventures. Our share of net cash in Joint Ventures is added at the bottom of the cash flow to show the total net debt including JVs. The gross and net debt figures including joint ventures are given below.                                              Interim      Interim    Full year                                          Jun 2014     Jun 2013     Dec 2013                                                  $m           $m           $m                                                                           Opening net debt (excluding JV's)         (325.3)      (145.5)      (145.5)                                                                          Cash generated from operations pre         330.1        268.7        573.8 working capital (excluding JV's)                                                                                                                     Working capital movements (excluding      (193.4)      (159.3)       (65.2) JV's)                                                                                                                                                Cash generated from operations             136.7        109.4        508.6                                                                          Acquisitions, capex and intangibles       (133.1)       (78.0)      (427.1)                                                                          Tax paid                                   (49.4)       (48.5)      (123.7)                                                                          Interest, dividends and other              (79.8)       (59.7)      (137.6)                                                                          Increase in net debt                      (125.6)       (76.8)      (179.8)                                                                          Closing net debt (excluding JV's)         (450.9)      (222.3)      (325.3)                                                                          JV net cash                                 23.5          4.6         15.8                                                                          Closing net debt (including JV's)         (427.4)      (217.7)      (309.5)  Throughout the period the Group debt levels (including JV cash and debt) are set out below.                                              Interim       Interim    Full Year                                          Jun 2014      Jun 2013     Dec 2013                                                                                 $m            $m           $m                                                                            Average net debt                            390.3         221.6        258.4                                                                           Average gross debt                          588.8         391.8        436.0                                                                           Closing net debt                            427.4         217.7        309.5                                                                           Closing gross debt                          637.4         372.7        493.0                                                                                  Cash generated from operations pre-working capital increased by $61.4m to $330.1m and post-working capital increased by $27.3m to $136.7m.  The majority of the higher working capital outflow of $193.4m in the first half of 2014 was due to increased receivables. This was caused in part by higher levels of activity in the first half of 2014 compared to the second half of 2013 and also by the typical seasonality seen at the end of the year, not being repeated at 30 June 2014.  Acquisitions, capex and intangibles include $60.8m in relation to acquisitions (2013: $16.6m). Of this amount, $23.4m relates to the acquisitions of Sunstone, Meesters and Cape. $37.4m relates to payments made in respect of companies acquired in prior periods. Payments for capex and intangible assets increased to $68.0m (2013: $60.1m). This included a significant investment in plant and infrastructure related to our US shale expansion and ongoing ERP and system related expenditure.  Interest, dividends and other, increased due to the inclusion of amounts relating to the Ethos transaction.  Summary Balance Sheet  The balance sheet below has been prepared using equity accounting for joint ventures, and as such does not proportionally consolidate the joint ventures assets and liabilities.                                             Interim     Interim     Full year                                            Jun 2014    Jun 2013      Dec 2013                                                                                  $m          $m            $m  Non-current assets                          2,682.6     2,158.4       2,276.3                                                                            Current assets                              1,783.3     1,903.8       2,052.7                                                                            Current liabilities                        (1,070.5)   (1,191.2)     (1,267.4)                                                                            Net current assets                            712.8       712.6         785.3                                                                            Non-current liabilities                      (835.5)     (601.9)       (645.3)                                                                            Net assets                                  2,559.9     2,269.1       2,416.3                                                                            Equity attributable to owners of            2,549.5     2,260.5       2,407.4 the parent                                                                                                                                               Non-controlling interests                      10.4         8.6           8.9                                                                            Total equity                                2,559.9     2,269.1       2,416.3  The increase in non-current assets since December 2013 is largely related to the investment in Ethos, goodwill and other intangible assets in relation to acquisitions made and expenditure on property, plant and equipment.  The reduction in net current assets since December 2013 is due to the move to equity accounting for joint ventures as required by IFRS 11, including the impact of the new Ethos joint venture, offset by higher receivables as noted in the commentary on the cash flow.  Capital efficiency  Net debt (including our share of JV net debt) to annualised Total EBITDA at 30 June 2014 was 0.8 times (June 2013: 0.4 times). The Board would generally expect net debt to EBITDA on this basis to be in a range of around 0.5 to 1.5 times going forward and to be typically below 1.0 times.  The Group's Return on Capital Employed ("ROCE")5 reduced from 18.1% at 30 June 2013 to 16.0% due to higher average working capital, combined with higher goodwill and other intangible assets recognised on acquisition, as well as the lower EBITA margin in the period.  The Group's ratio of average Operating Capital Employed to Revenue (OCER) worsened from 15.2% to 16.0%, as average operating capital grew at a faster rate than revenue. This was primarily due to higher average working capital in Wood Group PSN.      Principal risks and uncertainties  The principal risks and uncertainties facing the Group in the second half of 2014 that could lead to a significant loss of reputation or could impact on the performance of the Group, along with our approach to managing, mitigating and monitoring these risks, remain broadly unchanged from those described in the Group's 2013 Annual Report. The key risks are in the following categories:  * Safety & Assurance          * Operational       * Financial       * Environmental       * Commercial       * Compliance       * People       * Strategic   The mitigating factors are designed to reduce, but cannot be relied upon to eliminate, the risk areas identified. For further details on the management of risk and the principal risks and uncertainties see pages 21 to 23 of the Group's 2013 Annual Report.  ***********************  Footnotes  1 Total EBITA represents operating profit including JVs on a proportional basis of $221.5m (2013: $225.7m) before the deduction of amortisation of $50.3m (2013: $48.8m) and exceptional income of $27.9m (2013: $31.3m) and is provided as it is a key unit of measurement used by the Group in the management of its business.  2 Adjusted diluted earnings per share ("AEPS") is calculated by dividing earnings before exceptional items and amortisation, net of tax, by the weighted average number of ordinary shares in issue during the period, excluding shares held by the Group's employee share ownership trusts and adjusted to assume conversion of all potentially dilutive ordinary shares.  3 Number of people includes both employees and contractors at 30 June 2014 and includes our proportional share of headcount in joint ventures.  4 Interest cover is EBITA divided by the net finance expense.  5 Return of Capital Employed ("ROCE") is EBITA divided by average capital employed.  END  John Wood Group PLC  Interim Financial Statements 2014  page 16  John Wood Group PLC  Group income statement  for the six month period to 30 June 2014                       Unaudited Interim June 2014           Unaudited  Interim June   Audited Full Year December 2013                                                                 2013  (restated)                (restated)                                         Exce-                                                               Exce-                           Pre-   ptional     Total         Pre- Exceptional      Total        Pre-   ptional     Total                         exceptional     items            exceptional       items            exceptional     items                 Note       items  (note 3)                  items    (note 3)                  items  (note 3)                                       $m        $m        $m           $m          $m       $m          $m        $m        $m  Revenue from     2       3,224.4         -   3,224.4      2,788.7           -    2,788.7     5,753.2         -   5,753.2 continuing operations Cost of sales          (2,738.5)         - (2,738.5)    (2,342.6)           -  (2,342.6)   (4,803.3)         - (4,803.3) Gross profit               485.9         -     485.9        446.1           -      446.1       949.9         -     949.9 Administrative           (313.2)      50.9   (262.3)      (288.5)        17.3    (271.2)     (588.3)       1.1   (587.2) expenses Share of                    18.7         -      18.7          8.8           -     8.8        29.9    (28.0)       1.9 post-tax profit from joint ventures Operating profit 2         191.4      50.9     242.3        166.4        17.3      183.7       391.5    (26.9)     364.6 Finance income               0.6         -       0.6          0.6           -     0.6         1.1         -       1.1 Finance expense            (9.6)         -     (9.6)        (8.0)           -      (8.0)      (18.9)         -    (18.9) Profitbefore tax           182.4      50.9     233.3        159.0        17.3      176.3       373.7    (26.9)     346.8 from continuing operations Taxation         8        (45.9)    (13.0)    (58.9)       (32.8)       (4.7)     (37.5)      (83.1)       0.9    (82.2) Profit for the             136.5      37.9     174.4        126.2        12.6      138.8       290.6    (26.0)     264.6 period from continuing operations (Loss)/profit from                       (2.9)    (21.6)    (24.5)          9.1        14.0     23.1         8.3      27.6      35.9 discontinued operations net of tax Profit for the             133.6      16.3     149.9        135.3        26.6      161.9       298.9       1.6     300.5 period  Profit attributable to: Owners of the              129.7      10.8     140.5        131.5        26.6      158.1       294.3       1.6     295.9 parent Non-controlling              3.9       5.5       9.4          3.8           -     3.8         4.6         -       4.6 interests                         133.6      16.3     149.9        135.3        26.6      161.9       298.9       1.6     300.5 Earnings per share (expressed in cents per share) Basic            7          35.5       3.0      38.5         36.2         7.3     43.5        81.0       0.4      81.4 Diluted          7          34.6       2.9      37.5         35.1         7.1     42.2        78.8       0.4      79.2  The income statement for prior periods has been restated to show the results from joint ventures under equity accounting (proportional consolidation was used previously). The June 2013 income statement has been restated to show the results of the businesses that transferred to the EthosEnergy joint venture as discontinued. The 2014 losses of these businesses for the period prior to the formation of EthosEnergy are also shown as discontinued.  The notes on pages 22 to 34 are an integral part of the interim financial statements.  page 17  John Wood Group PLC  Group statement of comprehensive income  for the six month period to 30 June 2014                                                      Unaudited Unaudited   Audited                                                     Interim   Interim Full Year                                                        June      June  December                                                        2014      2013      2013                                                        $m        $m        $m  Profit for the period                                 149.9     161.9     300.5  Other comprehensive income  Items that will not be reclassified to profit or loss Remeasurement gains on retirement benefit                 -         -      16.5 obligations Movement in deferred tax relating to retirement           -         -     (3.8) benefit obligations Total items that will not be reclassified to              -         -      12.7 profit or loss Items that may be reclassified subsequently to profit or los Cash flow hedges                                       (0.4)       0.6      0.2 Net exchange movements on retranslation of             39.1      (95.2)    (37.6) foreign currency net assets Net exchange movements on retranslation of              0.1       (0.6)     (0.2) non-controlling interests Total items that may be reclassified subsequently      38.8    (95.2)    (37.6) to profit or loss  Other comprehensive income/(expense) for the           38.8    (95.2)    (24.9) period, net of tax  Total comprehensive income for the period             188.7      66.7     275.6  Total comprehensive income for the period is attributable to: Owners of the parent                                  179.2      63.5     271.2 Non-controlling interests                               9.5       3.2       4.4                                                    188.7      66.7     275.6 Total comprehensive income for the period is attributable to: Continuing operations                                 213.2      43.6     239.7 Discontinued operations                              (24.5)      23.1      35.9                                                          188.7      66.7     275.6  Exchange movements on the retranslation of foreign currency net assets would only be subsequently reclassified through profit or loss in the event of the disposal of a business.  The notes on pages 22 to 34 are an integral part of the interim financial statements.  page 18   John Wood Group PLC  Group balance sheet  as at 30 June 2014                                                           (Restated) (Restated)                                                   Unaudited  Unaudited    Audited                                                   Interim    Interim  Full Year                                                      June       June   December                                                      2014       2013       2013                                        Note          $m         $m         $m Assets Non-current assets Goodwill and other intangible assets              1,901.6    1,733.3    1,855.0 Property plant and equipment                        193.6      165.5      187.3 Investment in joint ventures                        474.4      158.0      137.8 Long term receivables                                78.3       62.0       68.0 Deferred tax assets                                  34.7       39.6       28.2                                                2,682.6    2,158.4    2,276.3 Current assets Inventories                                           9.5      339.4       11.4 Trade and other receivables                       1,587.2    1,404.6    1,242.8 Income tax receivable                                38.9       32.5       19.1 Assets held for sale                                    -          -      634.4 Cash and cash equivalents                 12        147.7      127.3      145.0                                                1,783.3    1,903.8    2,052.7 Liabilities Current liabilities Borrowings                                12         12.7       27.2       74.1 Trade and other payables                            962.9    1,048.1      951.1 Liabilities held for sale                               -          -      183.0 Income tax liabilities                               94.9      115.9       59.2                                                1,070.5    1,191.2    1,267.4 Net current assets                                  712.8      712.6      785.3  Non-current liabilities Borrowings                                12        585.9      322.4      396.2 Deferred tax liabilities                                -        5.9          - Retirement benefit obligations            9          36.6       52.3       41.2 Other non-currentliabilities                        127.0      136.4      141.7 Provisions                                           86.0       84.9       66.2                                                  835.5      601.9      645.3 Net assets                                        2,559.9    2,269.1    2,416.3  Equity attributable to owners of the parent Share capital                                        23.6       23.5       23.6 Share premium                                        56.0       54.3       56.0 Retained earnings                                 1,960.0    1,768.7    1,856.6 Other reserves                                      509.9      414.0      471.2                                                2,549.5    2,260.5    2,407.4  Non-controlling interests                            10.4        8.6        8.9 Total equity                                      2,559.9    2,269.1    2,416.3  The balance sheet for prior periods has been restated to show the share of net assets of joint ventures under equity accounting (proportional consolidation was used previously).  The notes on pages 22 to 34 are an integral part of the interim financial statements.  page 19  John Wood Group PLC  Group statement of changes in equity  for the six month period to 30 June 2014                                                                             Equity                                                                       attributable Non-controlling                                      Share   Share Retained    Other to  owners of       interests   Total                                    capital premium earnings reserves   the  parent                  equity                               Note      $m      $m       $m       $m            $m              $m      $m  At 1 January 2013                        23.5    54.3  1,640.7    508.6       2,227.1             8.2 2,235.3  Profit for the period                       -       -    158.1        -         158.1             3.8   161.9 Other comprehensive income: Cash flow hedges                            -       -        -      0.6           0.6               -     0.6 Net exchange movements on                   -       -        -   (95.2)        (95.2)           (0.6)  (95.8) retranslation of foreign currency net assets Total comprehensive income                  -       -    158.1   (94.6)          63.5             3.2    66.7 for the period Transactions with owners: Dividends paid                   4          -       -   (41.4)        -        (41.4)           (2.8)  (44.2) Credit relating to share         13         -       -     11.4        -          11.4               -    11.4 based charges Shares purchased by employee                -       -   (12.7)        -        (12.7)               -  (12.7) share trusts Shares disposed of by                       -       -      5.7        -           5.7               -     5.7 employee share trusts Exchange movements in                       -       -      7.7        -           7.7               -     7.7 respect of shares held by employee share trusts Transactions with non-                      -       -    (0.8)        -         (0.8)               -   (0.8) controlling interests At 30 June 2013                          23.5    54.3  1,768.7    414.0       2,260.5             8.6 2,269.1  At 1 January 2014                        23.6    56.0  1,856.6    471.2       2,407.4             8.9 2,416.3  Profit for the period                       -       -    140.5        -         140.5             9.4   149.9 Other comprehensive income: Cash flow hedges                            -       -        -    (0.4)         (0.4)               -   (0.4) Net exchange movements                      -       -        -     39.1          39.1             0.1    39.2 on retranslation of foreign currency net assets Total comprehensive income                  -       -    140.5     38.7         179.2             9.5   188.7 for the period Transactions with owners: Dividends paid                   4          -       -   (54.5)        -        (54.5)           (1.0)  (55.5) Credit relating to share         13         -       -     13.2        -          13.2               -    13.2 based charges Shares disposed of by                       -       -      9.1        -           9.1               -     9.1 employee share trusts Exchange movements in                       -       -    (4.9)        -         (4.9)               -   (4.9) respect of shares held by employee share trusts Transactions with non-                      -       -        -        -           -           (7.0)   (7.0) controlling interests At 30 June 2014                          23.6    56.0  1,960.0    509.9       2,549.5            10.4 2,559.9  The figures presented in the above tables are unaudited.  Other reserves include the capital redemption reserve, capital reduction reserve, merger reserve, currency translation reserve and the hedging reserve.  The notes on pages 22 to 34 are an integral part of the interim financial statements.  page 20  John Wood Group PLC  Group cash flow statement  for the six month period to 30 June 2014                                                          (Restated)  (Restated)                                                Unaudited Unaudited      Audited                                                  Interim Interim     Full  Year                                                June 2014 June 2013    Dec  2013                                           Note        $m         $m          $m  Cash generated from operations                11      136.7      109.4       508.6 Tax paid                                             (49.4)     (48.5)     (123.7) Net cash from operating activities                     87.3       60.9       384.9  Cash flows from investing activities Acquisition of subsidiaries (net of cash and  5      (60.8)     (16.6)     (287.3) borrowings acquired) Acquisitions of non-controlling interests             (4.3)          -       (3.1) Proceeds from divestment of subsidiaries                  -          -         0.3 (net of cash and borrowings divested and divestment costs) Payment received in relation to EthosEnergy            21.0          -           - transaction Purchase of property plant and equipment             (36.2)     (34.6)      (84.5) Proceeds from sale of property plant and                0.1        1.0         2.3 equipment Purchase of intangible assets                        (31.8)     (25.5)      (50.9) Interest received                                       0.6        0.6         1.1 Loans to joint ventures                              (47.6)      (0.6)       (6.6) Investment in joint ventures                              -      (1.3)       (1.3) Net cash used in investing activities               (159.0)     (77.0)     (430.0)  Cash flows from financing activities Proceeds from bank loans                              124.9       59.4       166.7 Purchase of shares by employee share trusts               -     (12.7)      (47.8) Disposal of shares by employee share trusts             9.1        5.7         7.9 Interest paid                                         (5.6)     (13.2)      (18.0) Dividends paid to shareholders                4      (54.5)     (41.4)      (67.4) Dividends paid to non-controlling interests           (1.0)      (2.8)       (3.1) Net cash from/(used in) financing activities           72.9      (5.0)        38.3 Net increase/(decrease) in cash and cash                1.2     (21.1)       (6.8) equivalents Effect of exchange rate changes on cash and             1.5      (8.8)       (5.4) cash equivalents Opening cash and cash equivalents                     145.0      157.2       157.2 Closing cash and cash equivalents                     147.7      127.3       145.0  The cash flow statement for prior periods has been restated to show the cash flows from joint ventures under equity accounting (proportional consolidation was used previously).  The notes on pages 22 to 34 are an integral part of the interim financial statements.  page 21  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  1.Basis of preparation  The interim report and financial statements for the six months ended 30 June 2014 have been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and with IAS 34 `Interim financial reporting' as adopted by the European Union. The interim report and financial statements should be read in conjunction with the Group's 2013 Annual Report and Accounts which have been prepared in accordance with IFRSs as adopted by the European Union.  The interim report and financial statements have been prepared on the basis of the accounting policies set out in the Group's 2013 Annual Report and Accounts and those new standards discussed below which are applicable from 1 January 2014. The interim report and financial statements do not comprise statutory accounts within the meaning of section 434of the Companies Act 2006. The interim financial statements were approved by the Board of Directors on 18 August 2014. The results for the six months to 30 June 2014 and the comparative results for six months to 30 June 2013 are unaudited. The comparative figures for the year ended 31 December 2013 do not constitute the statutory financial statements for that year. Those financial statements have been delivered to the Registrar of Companies and include the auditor's report which was unqualified and did not contain any statement under Section 498 of the Companies Act 2006.  As required by IFRS 11, the Group's interests in joint ventures have been consolidated using equity accounting for the six months ended 30 June 2014. In previous periods, the Group used proportional consolidation to account for its interests in joint ventures. The comparative figures for June 2013 and December 2013 have been restated accordingly.  After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.  The Group therefore continues to adopt the going concern basis in preparing the consolidated interim financial statements.  In preparing these interim financial statements, the significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those applied to the consolidated financial statements for the year ended 31 December 2013, to the extent that they now  encompass an additional critical accounting estimate and judgment.  Accounting for the EthosEnergy joint venture  The Group has used equity accounting to record its investment in the EthosEnergy joint venture. The accounting for the joint venture required the exercise of management's judgment relating to the assessment of whether EthosEnergy is controlled or jointly controlled. Based on management's judgment, control of the entities transferred to EthosEnergy was lost on creation of the joint venture and that going forward EthosEnergy is jointly controlled. Accordingly the Group has  equity accounted for the investment in accordance with IFRS 11. On establishment of the Group's investment in EthosEnergy, an assessment of the initial carrying value of that investment was made, which required the application of management judgment. Future events could cause the assumptions used by the Group to change which could have a significant impact on the carrying value of the investment.  Functional currency  The Group's earnings stream is primarily US dollars and the principal functional currency is the US dollar, being the most representative currency of the Group. The Group's financial statements are therefore prepared in US dollars.  The following exchange rates have been used in the preparation of these accounts:                                     June 2014 June 2013 Average rate £1 = $                       1.6706    1.5467 Closing rate £1 = $                       1.7099    1.5167  Disclosure of impact of new and future accounting standards  (a) Amended standards and interpretations  The following revisions and amendments to standards and interpretations are mandatory as of 1 January 2014:  - IFRS 10 `Consolidated financial statements'  - IFRS 11 `Joint arrangements'  - IFRS 12 `Disclosure of interests in other entities'  Up until 31 December 2013, the Group accounted for its interests in joint ventures using proportional consolidation. As IFRS 11 does not permit proportional consolidation, from 1 January 2014, for all periods presented, the Group has accounted for its interests in joint ventures using equity accounting. The use of equity accounting has no impact on Group profit for the year or earnings per share, but does impact the presentation of the Group's interests in joint ventures in the income statement, the balance sheet and the cash flow statement. Comparative figures have been restated to reflect the change to equity accounting. For further details see note 18 to the interim financial statements.  (b) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Group  The following relevant standards and amendments and interpretations to existing standards have been published and are mandatory for the Group's accounting periods beginning on or after 1 January 2015, but the Group has not early adopted them:  - IFRS 15 `Revenue from contracts with customers' was published in May 2014 and is effective for accounting periods beginning on or after 1 January 2017. The Group is in the process of assessing the likely impact of this standard on the financial statements.  page 22  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  2. Segmental reporting  The Group operates through two segments, Wood Group Engineering and Wood Group PSN. Following the formation of the EthosEnergy joint venture in May 2014, all of the Group's predominantly opex related turbine activity is carried out through joint ventures and is now managed and reported as part of the Wood Group PSN division. In order to provide visibility over the performance of the turbine activities, they are included on a separate line in the table below (Wood Group PSN - Turbine activities). This presentation is consistent with the Group's internal management reporting.  Under IFRS 11, the Group is now required to account for joint ventures using equity accounting, however for management reporting the Group continues to use proportional consolidation hence the inclusion of the proportional presentation in this note.  The segment information provided to the Chief Operating Decision Maker for the reportable operating segments for theperiod included the following:  Reportable operating segments                        Revenue               EBITDA (1)                   EBITA (1)         Operating profit                   Un-      Un-              Un-      Un-              Un-       Un-             Un-     Un-               audited  audited Audited  audited  audited Audited  audited   audited Audited audited audited Audited               Interim  Interim    Full  Interim  Interim    Full  Interim   Interim    Full Interim Interim    Full                  June     June    Year     June     June    Year     June      June    Year    June    June    Year                  2014     2013    2013     2014     2013    2013     2014      2013    2013    2014    2013    2013                                                                                                                                               $m       $m      $m       $m       $m      $m       $m      $m      $m      $m      $m      $m  Wood Group       1,019.8    982.6 1,985.4    116.3    126.7   260.3    108.8     119.8   246.0    95.3   121.8   228.0 Engineering Wood Group       2,341.6  1,913.7 3,996.0    176.4    119.4   281.5    163.0     111.1   262.1   181.5    83.2   161.9 PSN - Production Services Wood Group         439.8 550.8    1,082.8      6.5     48.4    95.1      0.1      40.6    80.8   (3.2)    36.1    65.0 PSN - Turbine activities Well Support -         -        -       -        -        -       -        -      -       -       -    14.0    34.4 discontinued Central  costs (2)              -        -           (25.7)   (26.4)  (52.0)   (28.0)    (28.3)  (55.9)  (52.1)  (29.4)  (57.9)  Total            3,801.2  3,447.1 7,064.2    273.5    268.1   584.9    243.9     243.2   533.0   221.5   225.7   431.4  Remove           (188.5)  (356.4) (652.5)    (0.7)   (31.0)  (45.8)      1.7    (25.5)  (36.4)    27.3  (35.2)  (55.2) discontinued Remove share of  (388.3)  (302.0) (658.5)   (32.0)   (19.3)  (48.9)   (26.1)    (15.8)  (41.8)  (25.2)  (15.6)  (13.5) joint ventures  Total continuing 3,224.4  2,788.7 5,753.2    240.8    217.8   490.2    219.5     201.9   454.8   223.6   174.9   362.7 operations excluding joint ventures  Share of                                                                                       18.7     8.8     1.9 post-tax profit from joint ventures Operating profit                                                                              242.3   183.7   364.6 Finance income                                                                                  0.6     0.6     1.1 Finance expense                                                                               (9.6)   (8.0)  (18.9) Profit before                                                                                 233.3   176.3   346.8 taxation from continuing operations Tax on continuing                                                                            (58.9)  (37.5)  (82.2) operations Profit for the                                                                                174.4   138.8   264.6 period from continuing operations (Loss)/Profit from                                                                           (24.5)    23.1    35.9 discontinued operations, net of tax Profit for                                                                                    149.9   161.9   300.5 the period  1. Total EBITDA represents total operating profit of $221.5m (2013: $225.7m) before the charge for depreciation of property, plant and equipment of $29.6m (2013: $24.9m), amortisation of $50.3m (2013: $48.8m) and exceptional credits of $27.9m (2013: $31.3m). The Total line includes the proportional share of all joint venture activity. EBITA represents EBITDA less depreciation. EBITA is the key unit of measurement used by the Group in the management of its business.  2. Central costs include the costs of certain management personnel in both the UK and the US, along with an element of Group infrastructure costs. Operating profit for the period to June 2014 is stated after deducting $23.0m of costs relating to the EthosEnergy transaction (see note 3 to the interim financial statements).  3. Revenue arising from sales between segments is not material.  4. Discontinued activities relate to the turbine businesses transferred to the EthosEnergy joint venture in May 2014. Comparative figures have been restated accordingly.  page 23  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  2. Segmental reporting (continued)  Segment assets                                                                                                     Unaudited Unaudited       Audited                                                       Interim   Interim      Full Year                                                     June 2014 June 2013  December 2013                                                                                                                                              $m        $m           $m Wood Group Engineering                                     976.1     937.2        880.0 Wood Group PSN - Production Services                     2,507.3   2,037.8        2,342.9 Wood Group PSN - Turbine activities                        610.1     975.1        967.8 Unallocated                                                372.4     112.1        138.3                                                       4,465.9   4,062.2        4,329.0  Unallocated segment assets include cash, income tax and deferred tax balances and amounts receivable in relation to the formation of the EthosEnergy joint venture.  3. Exceptional items                                                     Unaudited Unaudited       Audited                                                       Interim   Interim      Full Year                                                     June 2014 June 2013  December 2013                                                            $m        $m          $m Exceptional items included in continuing operations Venezuelan settlement                                     (58.4)         -           - Restructuring charges                                        7.5         -        15.9 Lease termination income                                       -    (15.3)         (15.1) Onerous contract                                               -         -        28.0 Other                                                          -     (2.0)        (1.9)                                                        (50.9)    (17.3)        26.9 Taxation                                                    13.0       4.7        (0.9) Continuing operations exceptional items, net of tax       (37.9)    (12.6)        26.0  Exceptional items included in discontinued operations Gain on divestment - Well Support                              -    (14.0)         (34.4) Costs relating to EthosEnergy transaction (see note 6)      23.0         -         7.0                                                          23.0    (14.0)         (27.4) Taxation                                                   (1.4)         -        (0.2) Discontinued operations exceptional items, net of tax       21.6    (14.0)         (27.6) Total exceptional items, net of tax                       (16.3)    (26.6)        (1.6)  In January 2014, the Group finalised a settlement agreement in respect of a contract taken over by PDVSA in 2009 and a gain of $58.4m has been recorded in the income statement. $5.5m of the settlement is attributable to a minority shareholder.  Further restructuring charges of $7.5m have been recorded in the period in relation to the decision made in 2013 to exit certain markets in Wood Group PSN Production Services Americas business.  For details of the EthosEnergy transaction see note 6.  Full details of the 2013 exceptional items are included in the 2013 Annual Report and Accounts.  page 24  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  4. Dividends                                                     Unaudited Unaudited        Audited                                                       Interim   Interim      Full Year                                                     June 2014 June 2013  December 2013                                                            $m        $m          $m Dividends on ordinary shares Final paid                                                  54.5      41.4        41.4 Interim paid                                                   -         -        26.0 Total dividends                                             54.5      41.4        67.4  After the balance sheet date, the directors declared an interim dividend of 8.9cents per share (2013: 7.1 cents) which will be paid on 25 September 2014. The interim financial statements do not reflect the interim dividend, which will result in an estimated reduction of $32.7m in equity attributable to owners of the parent. This will be shown as an appropriation of retained earnings in the financial statements for the year ended 31 December 2014.  5. Acquisitions  In January 2014, the Group acquired the assets of Meesters, aspecialist fabrication business based in the Bakken shale region in North Dakota. In April 2014, the Group acquired70% of the share capital of Cape Software Inc, a Texas based provider of simulation software and services for industrial control systems used by the oil & gas and other process-based industries. Also in April 2014, the Group acquired100% of the share capital of Calgary based Sunstone Projects Ltd, a pipeline consulting company providing engineering, procurement and construction management services to clients in the Canadian oil & gas industry. Initial consideration (net of $4.4m cash acquired) for these acquisitions was $23.4m and contingent consideration of $5.9m has been provided. Goodwill and intangible assets of $25.3m has been recorded on the acquisitions, the accounting for which will be finalised by 31 December 2014.  Contingent consideration payments amounting to $37.4m were made during the period in relation to acquisitions completed in previous years. Estimated contingent consideration liabilities at 30 June 2014 amounted to $58.3m (2013: $85.7m) and are payable over the next three years.  6. Divestments  On 6 May 2014, the Group's joint venture with Siemens, EthosEnergy was formed. Whilst Wood Group has a 51% shareholding in the new entity, all significant decision making requires unanimous consent from both parties and therefore Wood Group do not have control and the new business is accounted for as a joint venture. The transaction was accounted for under IAS 28 as set out below.                                                                             $m      $m Book value of Wood Group net assets transferred to EthosEnergy                    541.8 Cash received and receivable                                                      (157.4) Wood Group net assets disposed                                                    384.4 Value of Wood Group's investment in EthosEnergy                                   (384.4)                                                                                   - Wood Group costs associated with the creation of EthosEnergy Cumulative foreign exchange losses recycled through the income statement      7.0 Accelerated share based charges                                               4.8 Legal and other costs                                                        11.2    23.0 Net impact of transaction included in exceptional items per note 3                23.0 The value of Wood Group's investment in EthosEnergy represents the fair value of the net assets disposed.  Under the joint venture agreement Wood Group received a 51% ownership interest in EthosEnergy and EthosEnergy was required to pay Wood Group $70.0m, of which $21.0m was paid in May 2014. In addition, an estimated $87.4m will be paid by EthosEnergy in respect of post close adjustments for items including working capital and indebtedness at the date of formation.  Foreign exchange losses of $7.0m, which were recorded in the currency translation reserve in prior periods in relation to the businesses transferred to EthosEnergy, have been recycled through the income statement as required by IAS 21. Further details of the accelerated share based charges are provided in note 13.  page 25  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  7. Earnings per share                                  Unaudited Interim                 Unaudited Interim                  Audited Full Year                                 June 2014                         June 2013                        December 2013                        Earnings                         Earnings                           Earnings                    attributable     Number Earnings attributable                       attributable                     to equity         of      per    to equity  Number of   Earnings    to equity  Number of  Earnings                 shareholders     shares    share shareholders     shares per  share shareholders     shares per share                         ($m) (millions)  (cents)         ($m) (millions)    (cents)         ($m) (millions)   (cents)  Basic pre-                129.7      364.8     35.5        131.5      363.6       36.2        294.3      363.3      81.0 exceptional Exceptional items,         10.8          -      3.0         26.6          -        7.3          1.6          -       0.4 net of tax and non-controlling interests Basic                     140.5      364.8     38.5        158.1      363.6       43.5        295.9      363.3      81.4 Effect of dilutive            -        9.8    (1.0)            -       11.1      (1.3)            -       10.2     (2.2) ordinary shares Diluted                   140.5      374.6     37.5        158.1      374.7       42.2        295.9      373.5      79.2 Exceptional items, net   (10.8)          -    (2.9)       (26.6)          -      (7.1)        (1.6)          -     (0.4) of tax and non-controlling interests oDiluted pre-              129.7      374.6     34.6        131.5      374.7       35.1        294.3      373.5      78.8 exceptional items Amortisation,              36.5          -      9.8         35.4          -        9.4         74.0          -      19.8 net of tax Adjusted diluted          166.2      374.6     44.4        166.9      374.7       44.5        368.3      373.5      98.6 Adjusted basic            166.2      364.8     45.6        166.9      363.6       45.9        368.3      363.3     101.4  Basic discontinued earnings per share for the period is (6.7) cents (2013: 6.4 cents) and diluted discontinued earnings per share is (6.5) cents (2013: 6.2 cents).  The calculation of basic earnings per share (`EPS') is based on the earnings attributable to equity shareholders divided by the weighted average number of ordinary shares in issue during the period, excluding shares held by the Group's employee share trusts. For the calculation of diluted EPS, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all potentially dilutive ordinary shares. The Group's dilutive ordinary shares comprise share options granted to employees under Employee Share Option Schemes and the Long Term Retention Plan and shares and share options awarded under the Group's Long Term Incentive Plan and Long Term Plan. Adjusted basic and adjusted diluted EPS are disclosed to show the results excluding the impact of exceptional items and amortisation, net of tax.  8. Taxation  The taxation charge, recognising the profits from joint ventures on a proportional basis, for the six months ended 30 June 2014is 27.4% which is the anticipated effective rate on profit before taxation and exceptional items for the year ending 31 December 2014 (June 2013: 27.5%). The table below shows how these rates reconcile to the amounts presented in the income statement.                                          Unaudited Interim     Unaudited  Interim     Audited Full Year                                                    June 2014             June 2013            December 2013                                           Profit          Rate  Profit          Rate  Profit          Rate                                          before      Tax       before      Tax       before      Tax                                             tax   charge          tax   charge          tax   charge                                              $m       $m    %      $m       $m    %      $m       $m    %  Amounts reported in the income statement     233.3     58.9 25.2   176.3     37.5 21.3   346.8     82.2 23.7 Adjust for joint ventures, discontinued     (49.2)    (8.4)         10.3     13.8         65.5     31.2 operations and exceptional items Adjusted effective rate                      184.1     50.5 27.4   186.6     51.3 27.5   412.3    113.4 27.5  9. Retirement benefit obligations On 30 June 2014, the Group closed its defined benefit scheme to future accrual. A past service gain of $6.7m arose as a result of the closure of the scheme and this amount has been credited to the income statement in the period.  10. Related party transactions  The following transactions were carried out with the Group's joint ventures in the six months to 30 June. These transactions comprise sales and purchase of goods and services in the ordinary course of business. The receivables include loans to certain joint venture companies and amounts receivable in relation to the formation of the EthosEnergy joint venture.                                                 Unaudited Unaudited        Audited                                                   Interim   Interim     Full  Year                                                 June 2014 June 2013 December  2013                                                        $m        $m             $m  Sales of goods and services to joint ventures           30.7      13.4           25.1 Purchase of goods and services from joint ventures       3.0       4.0           11.7 Receivables from joint ventures                        219.8      73.8           87.0 Payables to joint ventures                              18.7       2.4            9.8  page 26  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  11. Cash generated from operations                                                             (Restated)  (Restated)                                                    Unaudited Unaudited     Audited                                                      Interim   Interim  Full  Year                                                    June 2014 June 2013    December                                                                              2013                                                          $m        $m          $m Reconciliation of operating profit to cash generated from operations:  Operating profit from continuing operations              242.3     183.7       364.6 Less share of post-tax profit from joint                (18.7)     (8.8)       (1.9) ventures                                                       223.6     174.9       362.7  Operating (loss)/profit from discontinued               (27.3)      35.2        55.2 operations  Adjustments (excluding share of joint ventures) Depreciation                                              23.7      21.4        44.8 Loss on disposal of property plant and                     2.1       0.7         1.6 equipment Amortisation of intangible assets                         49.4      48.6       101.7 Share based charges                                       17.4      14.2        22.4 Increase /(decrease) in provisions                         5.5    (10.7)       (7.5) Dividends from joint ventures                             10.3       6.1        24.7 Exceptional items - non-cash impact                       20.7    (14.0)      (23.4)  Changes in working capital (excluding effect of acquisition and divestment of subsidiaries) Increase in inventories                                  (5.3)    (20.7)       (9.7) Increase in receivables                                (197.1)   (198.1)      (66.5) Increase in payables                                      9.0      59.5        11.0  Exchange movements                                         4.7     (7.7)       (8.4) Cash generated from operations                           136.7     109.4       508.6  12. Reconciliation of cash flow to movement in net debt                                            At 1                                                       January              Exchange At 30  June                                            2014 Cash flow   movements        2014                                                 $m        $m          $m          $m Cash and cash equivalents                    145.0       1.2         1.5       147.7 Short term borrowings                       (74.1)      61.9       (0.5)      (12.7) Long term borrowings                       (396.2)   (186.8)       (2.9)     (585.9) Net debt                                   (325.3)   (123.7)       (1.9)     (450.9)  At 30 June 2014, $26.5m of cash relating to the Dorad project was subject to an attachment order.  13. Share based charges  Share based charges for the period of $12.6m (2013: $14.2m) relate to options granted under the Group's executive share option schemes and awards under the Long Term Incentive Plan, the Long Term Plan and the Long Term Cash Incentive Plan (`LTCIP'). The charge is included in administrative expenses in the income statement.$11.9m of the charge is credited to equity and $0.7m in respect of the LTCIP is included in non-current liabilities.  In addition, accelerated charges of $4.8m have been booked to exceptional items in the period relating to employees transferring to Ethos Energy. $1.3m of this amount is credited to equity and $3.5m, representing the cash amount payable to former Wood Group employees in compensation for loss of the options, is credited to non-current liabilities.  14. Fair value of non-derivative financial assets and financial liabilities  The fair value of short-term borrowings, trade and other payables, trade and other receivables, short-term deposits and cash at bank and in hand approximates to the carrying amount because of the short maturity of interest rates in respect of these instruments. Drawdowns under long-term bank facilities are for periods of three months or less and as a result, book value and fair value are considered to be the same.  Details of derivative financial instruments are not disclosed in the financial statements as they are not material.  15. Capital commitments  At 30 June 2014 the Group had entered into contracts for future capital expenditure amounting to $2.2m. The capital expenditure relates to property plant and equipment and has not been provided in the financial statements.  page 27  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  16. Contingent liabilities  From time to time, the Group is notified of claims in respect of work carried out. Where management believes we are in a strong position to defend these claims no provision is made. In addition, the Group is currently cooperating in an investigation into a facility where it previously provided services, however management do not believe that it is probable that any material liability will arise from this matter.  17. Post balance sheet events  In May 2014, the Group reached agreement to issue $375m of unsecured senior notes in the US private placement market with drawdown in August and November 2014. These will be at a mix of 7, 10 and 12 year maturities at an average fixed rate of 3.74%.  In July 2014, the Group reached agreement to acquire 100% of the shareholding of Agility Projects AS, a Norwegian engineering, procurement, construction management, installation and commissioning company for a consideration of NOK 1,008m (approximately $164m). Based in Sandefjord, the company is focussed on the Norwegian Continental Shelf and employs 650 personnel in various locations in Norway as well as having an engineering office in Shanghai, China. The acquisition is expected to be completed during the third quarter of 2014, subject to regulatory approval.  page 28  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  18. Reconciliation of primary financial statements as previously reported to adjust for change to equity accounting and to reclassify EthosEnergy activity as discontinued operations  The financial statements for the 6 months ended 30 June 2013 and the year ended 31 December 2013 have been restated as a result of the introduction of IFRS 11. Previously, the Group used proportional consolidation to account for its interests in joint ventures. Under IFRS 11, equity accounting must be used to account for interests in joint ventures and therefore these periods have been restated accordingly. In addition, the income statement for the six months to 30 June 2013 has been restated to show the results of the businesses transferred to EthosEnergy in May 2014 as discontinued operations. This note reconciles the figures as reported at June and December 2013with the restated comparative figures for those periods.  Group income statement for 6 months to 30 June 2013                                                                                Reallocate                                                                      Adjust     companies                                                                   for joint   transferred                                                                          ventures            to                                                            As     previously   EthosEnergy                                                         previously proportionally            as        As                                                      reported   consolidated  discontinued  restated                                                           $m             $m         $m        $m  Revenue from continuing operations                      3,447.1        (302.0)    (356.4)   2,788.7 Cost of sales                                         (2,896.1)          261.2      292.3 (2,342.6) Gross profit                                              551.0         (40.8)     (64.1)     446.1 Administrative expenses                                 (339.3)           25.2       42.9   (271.2) Share of post-tax profit from joint ventures                  -            8.8          -       8.8 Operating profit                                          211.7          (6.8)     (21.2)     183.7 Finance income                                              0.6              -          -       0.6 Finance expense                                           (8.4)            0.4          -     (8.0) Profit before tax from continuing operations              203.9          (6.4)     (21.2)     176.3 Taxation                                                 (56.0)            6.4       12.1    (37.5) Profit for the period from continuing operations          147.9              -      (9.1)     138.8 Profit from discontinued operations                        14.0              -        9.1      23.1 Profit for the period                                     161.9              -          -     161.9 The income statement has been restated to show the results from joint ventures under equity accounting. In addition, the results of the businesses transferred to the EthosEnergy joint venture in May 2014 have been reclassified as discontinued operations for comparative purposes.  page 29  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014                                                                          As    Equity                                                                  previously  accounting Group balance sheet as at 30 June 2013                                reported  adjustment As restated                                                                          $m       $m          $m Non-current assets Goodwill and other intangible assets                                   1,756.7    (23.4)     1,733.3 Property plant and equipment                                             206.1    (40.6)       165.5 Investment in joint ventures                                                 -    158.0       158.0 Long term receivables                                                     62.0        -        62.0 Deferred tax assets                                                       39.6              -        39.6                                                                        2,064.4      94.0     2,158.4 Current assets Inventories                                                              469.3     (129.9)       339.4 Trade and other receivables                                            1,536.3     (131.7)     1,404.6 Income tax receivable                                                     34.3    (1.8)        32.5 Cash and cash equivalents                                                155.0    (27.7)       127.3                                                                     2,194.9     (291.1)     1,903.8 Current liabilities Borrowings                                                                50.3    (23.1)        27.2 Trade and other payables                                               1,210.7     (162.6)     1,048.1 Income tax liabilities                                                   120.2    (4.3)       115.9                                                                     1,381.2     (190.0)     1,191.2 Net current assets                                                       813.7     (101.1)       712.6 Non-current liabilities Borrowings                                                               322.4        -       322.4 Deferred tax liabilities                                                   6.4    (0.5)         5.9 Retirement benefit obligations                                            52.3        -        52.3 Other non-current liabilities                                            141.6    (5.2)       136.4 Provisions                                                                86.3          (1.4)        84.9                                                                          609.0     (7.1)       601.9 Net assets                                                             2,269.1        -     2,269.1  Equity attributable to owners of the parent Share capital                                                             23.5        -        23.5 Share premium                                                             54.3        -        54.3 Retained earnings                                                      1,768.7        -     1,768.7 Other reserves                                                           414.0              -       414.0                                                                        2,260.5         -     2,260.5 Non-controlling interests                                                  8.6        -         8.6 Total equity                                                           2,269.1        -     2,269.1  There is no requirement to restate the June 2013 balance sheet to show the assets and liabilities of the businesses transferred to EthosEnergy in May 2014 as assets and liabilities held for sale.   page 30  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014                                                         As     Equity Group cash flow statement for 6                    previously accounting    Discontinued months ended 30 June 2013                            reported adjustment      adjustment   As restated                                                         $m         $m           $m            $m Reconciliation of operating profit to cash generated from operations Operating profit from continuing operations                                              211.7     (15.6)          (21.2)         174.9 Operating profit from discontinued operations                                                  -          -          35.2          35.2 Adjustments for: Depreciation                                             24.9      (3.5)            -          21.4 Loss on disposal of property plant and equipment                                       1.2      (0.5)            -           0.7 Amortisation of intangible assets                        48.8      (0.2)            -          48.6 Share based charges                                      14.2          -            -          14.2 Decrease in provisions                                 (11.0)        0.3            -        (10.7) Dividends from joint ventures                               -        6.1            -           6.1 Exceptional items - non-cash impact                         -          -          (14.0)        (14.0)  Changes in working capital Increase in inventories                                (35.1)       14.4            -        (20.7) Increase in receivables                               (191.0)      (7.1)            -       (198.1) Increase in payables                                     77.8     (18.3)            -          59.5  Exchange movements                                      (8.3)        0.6            -         (7.7) Cash generated from operations                          133.2     (23.8)            -         109.4 Tax paid                                               (55.8)        7.3            -        (48.5)  Net cash from operating activities                       77.4     (16.5)            -          60.9  Cash flow from investing activities Acquisition of subsidiaries (net of cash acquired)                                 (16.6)          -            -        (16.6) Purchase of property, plant and equipment                                          (38.9)        4.3            -        (34.6) Proceeds from sale of property, plant and equipment                                       1.0          -            -           1.0 Purchase of intangible assets                          (26.0)        0.5            -        (25.5) Interest received                                         0.6          -            -           0.6 Loans to joint ventures                                     -      (0.6)            -         (0.6) Investment in joint ventures                                -      (1.3)            -         (1.3) Net cash used in investing activities                  (79.9)        2.9            -        (77.0)  Cash flows from financing activities Proceeds from bank loans                                 59.0        0.4            -          59.4 Purchase of shares by employee share trusts                                           (12.7)          -            -        (12.7) Disposal of shares by employee share trusts                                              5.7          -            -           5.7 Interest paid                                          (13.6)        0.4            -        (13.2) Dividends paid to shareholders                         (41.4)          -            -        (41.4) Dividends paid to non-controlling interests             (2.8)          -                      (2.8) Net cash used in financing activities                   (5.8)        0.8            -         (5.0)  Net decrease in cash and cash equivalents               (8.3)     (12.8)            -        (21.1) Effect of exchange rate changes on cash and cash equivalents                            (9.0)        0.2            -         (8.8) Opening cash and cash equivalents                       172.3     (15.1)            -         157.2  Closing cash and cash equivalents                       155.0     (27.7)            -         127.3  page 31  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014  Group income statement for year ended 31 December 2013                                                                       Adjust  for joint                                                                                ventures                                                                   As         previously                                                           previously     proportionally          As                                                             reported       consolidated    restated                                                                   $m              $m          $m  Revenue from continuing operations                              6,379.7            (626.5)     5,753.2 Cost of sales                                                 (5,351.9)           548.6   (4,803.3) Gross profit                                                    1,027.8           (77.9)       949.9 Administrative expenses                                         (662.2)            75.0     (587.2) Share of post-tax profit from joint ventures                          -             1.9         1.9 Operating profit                                                  365.6           (1.0)       364.6 Finance income                                                      1.1               -         1.1 Finance expense                                                  (19.6)             0.7      (18.9) Profit before tax from continuing operations                      347.1           (0.3)       346.8 Taxation                                                         (92.6)            10.4      (82.2) Profit for the period from continuing operations                  254.5            10.1       264.6 Profit from discontinued operations                                46.0           (10.1)        35.9 Profit for the period                                             300.5               -       300.5  The income statement has been restated to show joint ventures under equity accounting. The results of the businesses transferred to the EthosEnergy joint venture in May 2014, were already reclassified as discontinued in the December 2013 accounts.  page 32  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014                                                                          Joint                                                                        venture                                                                      held  for     Equity                                                                 As        sale accounting        As Group balance sheet as at 31 December 2013                   reported  adjustment adjustment  restated                                                                 $m          $m         $m        $m Non-current assets Goodwill and other intangible assets                          1,875.5         3.8     (24.3)   1,855.0 Property plant and equipment                                    221.3         2.4     (36.4)     187.3 Investment in joint ventures                                        -          -    137.8     137.8 Long term receivables                                            68.0          -        -      68.0 Deferred tax assets                                              27.2          -      1.0      28.2                                                            2,192.0         6.2       78.1   2,276.3 Current assets Inventories                                                     101.1        35.1    (124.8)      11.4 Trade and other receivables                                   1,365.1         9.9    (132.2)   1,242.8 Income tax receivable                                            20.7          -    (1.6)      19.1 Assets held for sale                                            685.6      (51.2)          -     634.4 Cash and cash equivalents                                       183.5          -   (38.5)     145.0                                                            2,356.0       (6.2)    (297.1)   2,052.7 Current liabilities Borrowings                                                       96.8          -   (22.7)      74.1 Trade and other payables                                      1,123.0         1.9    (173.8)     951.1 Liabilities held for sale                                       185.4       (2.4)          -     183.0 Income tax liabilities                                           61.3         0.3      (2.4)      59.2                                                            1,466.5       (0.2)    (198.9)   1,267.4 Net current assets                                              889.5       (6.0)     (98.2)     785.3  Non-current liabilities Borrowings                                                      396.2          -        -     396.2 Retirement benefit obligations                                   41.2          -        -      41.2 Other non-current liabilities                                   141.0          -      0.7     141.7 Provisions                                                       86.8         0.2     (20.8)      66.2                                                              665.2         0.2     (20.1)     645.3 Net assets                                                    2,416.3          -        -   2,416.3  Equity attributable to owners of the parent Share capital                                                    23.6          -        -      23.6 Share premium                                                    56.0          -        -      56.0 Retained earnings                                             1,856.6          -        -   1,856.6 Other reserves                                                  471.2          -              -     471.2                                                               2,407.4          -         -   2,407.4 Non-controlling interests                                         8.9          -        -       8.9 Total equity                                                  2,416.3          -        -   2,416.3  page 33  John Wood Group PLC  Notes to the interim financial statements  for the six month period to 30 June 2014                                                                                Equity                                                                          As  accounting Group cash flow statement for the year ended 31 December 2013         reported  adjustment As restated                                                                          $m       $m          $m Cash generated from operations Operating profit from continuing operations                              365.6    (2.9)       362.7 Operating profit from discontinued operations                             65.8    (10.6)        55.2 Adjustments for: Depreciation                                                              51.9    (7.1)        44.8 Loss on disposal of property plant and equipment                           1.6        -         1.6 Amortisation of intangible assets                                        102.1    (0.4)       101.7 Share based charges                                                       22.4        -        22.4 Decrease in provisions                                                   (7.6)      0.1       (7.5) Dividends from joint ventures                                                -     24.7        24.7 Exceptional items - non-cash impact                                        4.6    (28.0)      (23.4)  Changes in working capital Increase in inventories                                                 (17.9)      8.2       (9.7) Increase in receivables                                                 (66.8)      0.3      (66.5) Increase in payables                                                      23.2    (12.2)        11.0  Exchange movements                                                       (8.5)      0.1       (8.4) Cash generated from operations                                           536.4    (27.8)       508.6 Tax paid                                                               (127.8)      4.1     (123.7)  Net cash from operating activities                                       408.6    (23.7)       384.9  Cash flow from investing activities Acquisition of subsidiaries (net of cash acquired)                     (287.3)        -     (287.3) Acquisition of non-controlling interests                                 (3.1)        -       (3.1) Disposal of subsidiaries (net of cash disposed)                            0.3        -         0.3 Purchase of property, plant and equipment                               (90.4)      5.9      (84.5) Proceeds from sale of property, plant and equipment                        2.6    (0.3)         2.3 Purchase of intangible assets                                           (51.6)      0.7      (50.9) Interest received                                                          1.1        -         1.1 Loans to joint ventures                                                      -    (6.6)       (6.6) Investment in joint ventures                                                 -    (1.3)       (1.3) Net cash used in investing activities                                  (428.4)    (1.6)     (430.0)  Cash flows from financing activities Proceeds from bank loans                                                 165.4      1.3       166.7 Purchase of shares by employee share trusts                             (47.8)        -      (47.8) Sale of shares by employee share trusts                                    7.9        -         7.9 Interest paid                                                           (18.6)      0.6      (18.0) Dividends paid to shareholders                                          (67.4)        -      (67.4) Dividends paid to minority interests                                     (3.1)        -       (3.1) Net cash from financing activities                                        36.4      1.9        38.3  Net increase/(decrease) in cash and cash equivalents                      16.6    (23.4)       (6.8) Effect of exchange rate changes on cash                                  (5.4)        -       (5.4) Opening cash and cash equivalents                                        172.3    (15.1)       157.2 Closing cash and cash equivalents                                        183.5    (38.5)       145.0  page 34  Statement of directors' responsibilities  for the six month period to 30 June 2014  The directors confirm that the interim financial statements have been prepared in accordance with IAS 34 `Interim Financial Reporting' as adopted by the European Union and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:   - an indication of important events that have occurred during the first six months and their impact on the financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year; and   - material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.  The directors of John Wood Group PLC are listed in the Group's 2013 Annual Report and Accounts. The following changes have occurred since the signing of the 2013 accounts: A G Langlands resigned as a director and as Chairman on 14 May 2014 and J M Brown was appointed as a director on 15 May 2014.  R Keiller Chief Executive  A G Semple Chief Financial Officer  18 August 2014  page 35  Independent review report to John Wood Group PLC  for the six month period to 30 June 2014  Report on the consolidated interim financial statements  Our conclusion  We have reviewed the consolidated interim financial statements, defined below, in the half-yearly financial report of John Wood Group PLC for the six months ended 30 June 2014.Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.  This conclusion is to be read in the context of what we say in the remainder of this report.  What we have reviewed  The consolidated interim financial statements, which are prepared by John Wood Group PLC, comprise:  the Group balance sheet as at 30 June 2014;  the Group income statement for the period then ended;  the Group statement of comprehensive income for the period then ended;  the Group statement of changes in equity for the period then ended;  the Group cash flow statement for the period then ended; and  the notes to the interim financial statements.  As disclosed in note 1, the financial reporting framework that has been applied in the preparation of the full annual financial statements of the group is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union.  The consolidated interim financial statements included in the half-yearly financial report have been prepared in accordance with International Accounting Standard 34, `Interim Financial Reporting', as adopted by the European Union and the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.  What a review of consolidated financial statements involves  We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, `Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.  A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.  We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the consolidated interim financial statements.  Responsibilities for the consolidated interim financial statements and the  review  Our responsibilities and those of the directors  The half-yearly financial report, including the consolidated interim financial statements, is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.  Our responsibility is to express to the company a conclusion on the consolidated interim financial statements in the half-yearly financial report based on our review. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure and Transparency Rules of the Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.  PricewaterhouseCoopers LLP  Chartered Accountants  18 August 2014  Aberdeen  page 36  John Wood Group PLC  Shareholder information  Payment of dividends  The Company declares its dividends in US dollars. As a result of the shareholders being mainly UK based, dividends will be paid in sterling, but if you would like to receive your dividend in dollars please contact the Registrars at the address below. All shareholders will receive dividends in sterling unless requested. If you are a UK based shareholder, the Company encourages you to have your dividends paid through the BACS (Banker's Automated Clearing Services) system. The benefit of the BACS payment method is that the Registrars post the tax vouchers directly to the shareholders, whilst the dividend is credited on the payment date to the shareholder's Bank or Building Society account. Shareholders who have not yet arranged for their dividends to be paid direct to their Bank or Building Society account and wish to benefit from this service should contact the Registrars at the address below. Sterling dividends will be translated at the closing mid-point spot rate on 29August 2014 as published in the Financial Times on 30 August 2014.  Officers and advisers  Secretary and Registered Office                   Registrars  R M B Brown                                       Equiniti John Wood Group PLC                               Aspect House John Wood House                                   Spencer Road Greenwell Road                                    Lancing Aberdeen                                          West Sussex AB12 3AX                                          BN99 6DA  Tel: 01224 851000                                 Tel: 0871 384 2649  Stockbrokers                                      Independent Auditor  JPMorgan Cazenove Limited                         PricewaterhouseCoopers LLP Credit Suisse                                     Chartered Accountants and  Statutory Auditors                                                32 Albyn Place Company solicitors                                Aberdeen Slaughter and May                                 AB10 1YL                 Financial calendar                       6 months ended  Year ending                                    31 December                    30 June 2014         2014  Results announced  19 August 2014         Late                                    February                                        2015 Ex-dividend date    27 August2014   April 2015 Dividend record      29August2014   April 2015 date Dividend payment               25     May 2015 date                September2014 Annual General                        May 2015 Meeting  The Group's Investor Relations website can be accessed at www.woodgroup.com.  page 37 
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