Engineering Titan Wood Group Hit with £13m Fine for Financial Reporting Failures
Scottish engineering powerhouse John Wood Group has been penalized with a substantial £13m fine by the Financial Conduct Authority (FCA) following an investigation into inaccurate financial disclosures. The London-listed firm, which is poised to depart the City, was found to have published misleading information across multiple reporting periods.
Investigation Uncovers Systemic Control Failures
The FCA's probe, initiated in June 2025, determined that Wood Group lacked adequate systems, controls, and procedures, resulting in the dissemination of inaccurate data in its full-year 2022 and 2023 financial results, as well as its half-year 2024 results. Specific violations included failing to release a $4.4m project-related contingency in 2022, neglecting to write off $18m in unsupportable debit balances in 2023, and publishing 2024 half-year results without auditor review that inaccurately portrayed a $140m exceptional charge.
Steve Smart, executive director of enforcement and market oversight at the FCA, emphasized: "Investors depend on accurate information to make informed decisions. Wood Group failed to meet this fundamental requirement and fell significantly short of the high standards expected of listed companies."
Discount and Financial Impact
Wood Group avoided a potential fine of nearly £18.6m by qualifying for a 30 percent discount, granted for agreeing to resolve the case at an early stage. The company's financial reporting inaccuracies first came to light in November 2024, triggering a dramatic stock decline of over 70 percent to approximately 28p per share. This marks a stark contrast to its 2013 peak valuation of £5bn, when it employed more than 50,000 workers globally in oilfield operations. Currently, its market value hovers around £200m.
Imminent Exit from London Stock Exchange
In a related development, Wood Group's shares surged over 10 percent on Tuesday after announcing that its £216m acquisition by Dubai-based Sidara is set to finalize next week. The firm indicated last July that it would likely recommend the deal with Sidara, formerly known as Dar Al-Handasah, to shareholders. This delisting represents another significant setback for the London Stock Exchange, following shareholder approval at a general meeting in November 2025 after the acquisition was agreed upon in August of that year.
The completion of this acquisition will result in Wood Group's formal delisting from the London Stock Exchange, concluding its tenure as a publicly traded entity in the City amid these regulatory challenges and financial restructuring.
