Troubled Aberdeen-based engineering and consulting giant John Wood Group said on Monday its shares will be suspended from trading if, as it expects, it does not publish its FY24 accounts by April 30, 2025.
Wood’s share price is down more than 70% for the past year amid an independent review by Deloitte following “exceptional contract write-offs” and a “difficult” trading update for the year ended December 31, 2024.
Wood, one of Scotland’s biggest listed firms, employs more than 35,000 people in 60 countries.
On Monday, Wood published an update on the Deloitte review and the timing of the publication of results for the year ended December 31, 2024.
“The information presented here is draft and subject to the conclusion of the full year audit, including the treatment of any prior year adjustments,” said Wood.
“This update is not a preliminary statement of annual results and has not, therefore, been agreed by the company’s auditors.”
Wood said it has now received the draft Deloitte review and is in “ongoing discussion and consultation” with key stakeholders on the findings, including necessary remediation steps.
Wood said that as a result of the Deloitte Review, a number of prior year adjustments are expected to be required to its income statement and balance sheet.
“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,” said Wood.
“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.
“There has been significant change within Wood and steps taken during and since the period covered by the Review, including changes in key roles in Finance and external expert assistance in the application of accounting standards.
“We are committed to implementing a detailed remediation plan, including necessary follow-on actions from the Review, to continue to strengthen the Group’s financial culture, governance and controls. This will include actions on culture, controls and organisational structure.
“We will provide a further update on the impacts of the Review, and actions being taken, as appropriate.”
The company added: “Given the timing of the Review and prior year adjustments, and the extensive work needed to conclude the audit, it is now expected that the company will not publish its FY24 accounts by 30 April 2025,” said Wood.
“In that case, the company’s shares would be suspended from trading from that time as work progresses towards completion of its FY24 accounts.”
Wood said it remains in discussions with Dar Al-Handasah Consultants Shair and Partners Holdings Ltd (Sidara) in relation to a possible cash takeover offer for Wood.