Financial watchdog launches investigation into troubled Wood Group

Aberdeen-based engineering firm Wood Group is being investigated by the UK’s financial watchdog.

The Financial Conduct Authority (FCA) is to investigate the company covering the period from the January 1, 2023 until November 7, 2024.

It comes after Wood announced in March that an independent review had found “material weaknesses and failures in the Group’s financial culture”.

Wood said it was having to adjust its accounts from the past three financial years after the review.

The statement in March also said: “The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood’s auditors.”

Wood also said it was unlikely to file its accounts for 2024 on time, which means shares in the firm have been suspended from trading on the London Stock Exchange since May.

On Friday, Wood said the FCA had launched an investigation, and it would cooperate fully with the regulator.

It comes as Wood continues to hold talks with a Dubai-based firm over a possible takeover.

Sidara tabled an offer in April which valued the Aberdeen firm at around £242m.

Sidara abandoned a deal last August, blaming global market turmoil and geopolitical risks, valuing Wood Group at around £1.56bn.

A deadline for a deal to be concluded between the two companies is June 30, 2025.