Wood Group PLC, in the United Kingdom engineer, says that a financial review discovered “material weaknesses and failures” in the financial culture of its project business unit. As a result, Aberdeen’s firm, based in Scotland, says he will probably not publish his financial report from the end of 2024 to April as planned and expects to suspend the negotiation of his actions during the delay.
Wood announced last November that it would undergo an independent financial review of the financial consultant Deloitte. On March 31, Wood shared some of these preliminary findings, including auditors encountered problems with some accounting contracts and standards in their project unit. The discovered problems included “improper management and cancellation pressure to maintain previously reported positions” and a over-optimism, he says.
The company did not reveal the names, locations, costs or areas of these projects. Wood specializes mainly in the global energy sector.
Wood says he hopes to make some adjustments from the year before his results and balance account for 2022, 2023 and the first half of 2024. But, given the calendar and the necessary work to conclude the review, the company provides not to publish its annual financial report on April 30 and suspend the negotiation of holdings since then until the review is complete.
“We are committed to implementing a detailed remediation plan … to continue to strengthen the group’s culture, governance and financial controls,” the company says in a statement.
Auditors did not identify material problems with Wood consulting business units, according to Wood.
Wood argues that there has been “significant change” within the period covered by the review. In February, the old CFO CFO Arvind Balan resigned after less than a year on the paper after the discovery of the “incorrect description of its professional qualifications”. The company named Iain Torrens as temporary CFO shortly after.
“This is a critical period for Wood and Iain is an experienced CFO with the necessary experience in capital markets and the leadership shown in refinancing and financial reports, as well as risk management, auditing and fulfillment,” said Wood’s CEO Ken Gilmartin at the time.
Wood, which occupies the 10th place of the 225 best international Enr design companies, operates in more than 60 countries. Its north -American operations are based on Houston, with a total of 25 offices across the country.
The preliminary financial review preliminary conclusions occur when Wood faces a possible purchase of the Dubai Engineering Firm, SIDARA, which occupies the number 9 on the list of international design companies in the ENR. After making multiple offers to take care of Wood, Sidarra withdrawn a $ 2.0 million offer last August.
But in February, companies announced that SIDARA was renewing their efforts for a possible cash offer to acquire wood. On March 24, companies said that discussions were still underway and that they extended the SIDAA period to make an offer until April 17.
Wood previously sold his environmental business to WSP Global Inc. based in Montreal for $ 1.8 billion by 2022.
