StockMarketWire.com - Services company John Wood Group said it had sold its nuclear business to a subsidiary of Jacobs for £250m.

The sale price represented a multiple of around 12.4 times earnings, based on 2018 Ebitda of £20.2m.

Wood Group also swung to a first-half profit of £62.2m for the six months through June, compared to a £25.3m loss on-year.

Revenue fell 2.6% to £4.79bn, but adjusted Ebitda rose 7.2% to £314m.

Wood Group declared an interim dividend of 11.4c, up 0.9% on-year.

Finalisation of the nuclear deal was conditional on competition regulator approval and Jacobs had agreed to pay a £7.5m fee to Wood if it was rejected by the Competition and Markets Authority.

Wood said the sale proceeds would be used to cut debt.

'The sale of our nuclear business follows other recent divestments and marks a significant step towards achieving Wood's target leverage policy,' chief financial officer David Kemp said.

'Although our nuclear business is a strong UK player and has performed well, we see better opportunities to develop clear global leadership positions across other parts of our business.' Story provided by StockMarketWire.com