Wood Group to be investigated by FCA

(Sharecast News) - Wood Group said on Friday that the Financial Conduct Authority has launched an investigation into the company for the period from 1 January 2023 to 7 November 2024. In a very brief statement, it said: "The company will cooperate fully with the FCA in relation to this investigation."

Wood Group announced in November last year that it had agreed to commission an independent review by Deloitte following the exceptional contract write-offs relating to the exit from lump sum turnkey and large-scale EPC reported at the half-year 2024 results.

It said at the time that the review would focus on reported positions on contracts in Projects, accounting, governance and controls, including whether any prior year restatement may be required.

Shares in the company then tumbled in March 2025 when it said the review had found "material weakness and failures" in its books.

Wood said at the time: "As a result of the review, Wood has identified material weaknesses and failures in the group's financial culture within the Projects business unit and engagement between Group Finance and Projects.

"This included inappropriate management pressure and override to maintain previously reported positions, including through unsupported dispensations, and over-optimism and/or lack of evidence in respect of accounting judgements. The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors."

The engineering firm said that "material" prior year profit & loss and balance sheet adjustments were expected for FY22, FY23 and HY24. It also said it expected "material" restatements for adjusted EBITDA and adjusted EBIT for FY22 and FY23.