Context
The John Wood Group (PLC) has been fined £12,993,700 for publishing inaccurate financial results information and is an example of the FCA shortening enforcement investigation timescales.
Key points to note and next actions
- Wood Group’s accounting judgements, following poor performance of some projects, were inappropriately influenced by its desire to maintain previously stated financial results. The Group did not have adequate systems, controls or procedures to prevent this from happening.
- The result was that Wood Group published inaccurate information in its full-year 2022 and 2023 financial results and the half-year 2024 results. The company failed to take reasonable care to ensure that its announcements about those results were not false or misleading.
- These issues came to light from November 2024 onwards. By April 2025, Wood Group’s share price fell by 78% and its shares were suspended in May 2025.
- The FCA opened its investigation into Wood Group in June 2025 and concluded it within 9 months, an example of how the FCA is improving the pace of its enforcement investigations. Wood Group accepted the findings and so qualified for a 30% reduction in its financial penalty.