The review, commissioned after discussions with auditors, uncovered “material weaknesses and failures” in the company’s financial culture, primarily within its Projects business unit.

Key findings include inappropriate management pressure to maintain reported positions, instances where information was withheld from auditors or unreliable information provided, over-optimism in accounting judgements, and incorrect application of accounting standards, particularly concerning legacy projects.

These issues are expected to lead to material adjustments to prior income statements and balance sheets, including restatements of adjusted EBITDA and EBIT for FY22 and FY23. However, the company does not anticipate a material impact on historical or future cash flow generation.

Consequently, Wood Group will delay the publication of its FY24 results, originally due by 30 April 2025. The company warned that its shares could be suspended from trading from that date if the accounts are not finalised. Temporary waivers have been secured from lenders concerning historical non-compliance with financial covenants, valid until 30 April 2025, and discussions are ongoing regarding refinancing and the results delay.

This news comes as Wood Group continues talks with Sidara regarding a potential takeover, with Sidara having until 17 April 2025 to make a firm offer. The company’s shares have suffered significantly over the past year, burdened by debt, and its CFO departed in February 2025 after misstating qualifications.

Wood Group states significant changes have occurred since the period reviewed and it is committed to implementing a detailed remediation plan addressing culture, controls, and organisational structure.