Highlands-born accountant David Kemp, one of the key figures in mergers and acquisitions involving Aberdeen-based engineering and consultancy services giant Wood over the past 10 years, is to retire.
Mr Kemp, 53, joined Wood in 2013 as chief financial officer of the former Wood Group PSN business, which is now part of the company’s operations business unit.
He joined Wood’s group board in January 2015 and became CFO in May 2015.
Major deals he has been at the heart of include Wood’s £2.2 billion acquisition of Amec Foster Wheeler in 2017.
The Thurso man was previously chairman and then finance director at Aberdeen company Trapoil, the UK-listed explorer he helped to launch in 2008. He started his career at PWC and moved on to senior roles at Technip, Amerada Hess and Simmons and Company International.
“I have really valued David’s support and leadership.”
Ken Gilmartin, chief executive, Wood
Announcing Mr Kemp’s looming retirement, alongside first half results, London-listed Wood said he had played a key role in its response to Covid. It also hailed his contribution to the “transformational” sale of its built environment consulting arm to WSP Global last year, as well as his support for chief executive Ken Gilmartin in setting out a new growth strategy.
Chairman Roy Franklin added: “David has made a very significant contribution to Wood since joining back in 2013, helping to build a more diversified company and leading our financial recovery over the last few years.”
Mr Gilmartin, who took over as CEO last summer, said: “I have really valued David’s support and leadership. In the last year we have worked together to transform the company – a new business model, facing growth markets, with a clear strategic plan.
“David leaves Wood in a strong position to capitalise on the significant opportunities in front of us.”
Mr Kemp staying on until Wood finds its next finance chief
Mr Kemp, a former Thurso High School pupil and Aberdeen University accountancy student, said he was leaving a company “well-positioned for the future”.
He added: “I will give Ken and the board all my support to continue delivering on our strategy until my successor is in place.”
The process to appoint a new CFO is under way.
Shares lift nearly 5% after first half results
Meanwhile, shares in Wood, which employs around 35,600 people globally, including nearly 1,500 in Aberdeen, jumped nearly 5% after it lifted full-year guidance on revenue and earnings before interest, taxes and depreciation (Ebitda). Revenue is now expected to come in at around £4.7bn, generating Ebitda “within our medium-term target of mid to high single-digit growth”.
Wood reported an order book also worth about £4.7bn, up 5% on December 2022, on a constant currency basis and excluding the divestment of some Gulf of Mexico business.
Revenue for the six months to June 30 came in at £2.35bn, up from £2.02bn a year ago.
Statutory pre-tax losses from continuing operations in the latest period totalled £20.4 million, compared with £24m previously.
Wood’s 2023 H1 losses reflected one-off charges including a £15.7m write-down for its now defunct power and industrial engineering, procurement and construction business.
The balance sheet also took a £4m hit for costs linked to an attempt earlier this year by private equity firm Apollo to take over the company.
Mr Gilmartin said: “When we announced our growth strategy in November last year we set out a plan for Wood to deliver on its significant potential.
“I am delighted our results show the clear progress we are making. We have made a good start to the year, delivering growth in revenue, Ebitda, headcount and our pipeline.”
He added: “The well-publicised bid by Apollo was arguably a costly and, ultimately, distracting exercise, with the outcome heightening pressure on the board to lay out a vision for the years ahead.”
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