Engineering giant Wood Group is being investigated by the UK’s financial watchdog following an independent review which unearthed “cultural failings” with its accounting practices.
The Financial Conduct Authority’s (FCA) probe will look into the period between January 2023 and November 2024.
The troubled Scottish group, which provides oilfield and engineering services, warned in April that it was having to restate its accounts from previous years.
It also delayed the publication of results for the 2024 financial year, which were due at the end of April, meaning its shares have been suspended from trading on the London Stock Exchange since.
This followed an independent review carried out by Deloitte finding “material weaknesses and failures in the group’s financial culture” within its projects business unit and the engagement with its group finance team.
This included “inappropriate management pressure” to maintain previously reported positions 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 results found.
The firm stressed there has since been significant change within the group and steps taken to address the failings discovered.
Meanwhile, Aberdeen-based Wood Group has been the subject of a takeover approach by Dubai-based buyer Sidara.
The latest offer, received in April, valued the company at around £242 million.
A year ago, Sidara made a £1.56 billion takeover approach before talks collapsed – and Wood Group’s share price has plummeted since.
