Wood Group, the energy and engineering services company, has been fined almost £13 million for publishing inaccurate information in its financial results.
The Financial Conduct Authority found that the Aberdeen-headquartered firm did not have adequate systems, controls or procedures in place.
That led to inaccurate information in its full-year 2022 and 2023 financial results and half-year 2024 results.
It avoided a higher £18.6m penalty after qualifying for a 30% discount by agreeing to resolve the case at an early stage.
The watchdog stated that Wood Group “failed to take reasonable care to ensure that its announcements about those results were not false or misleading”.
Steve Smart, executive director of enforcement and market oversight at the Financial Conduct Authority, said: “Investors rely on accurate information to make decisions.
“Wood Group failed to provide this and fell well short of the high standards we expect of listed companies.”
The revelations led to a suspension of the company’s shares last year, as Wood Group was compelled to delay several financial updates while it worked to restate its figures.
An independent review, conducted by Deloitte last year, subsequently uncovered “material weaknesses and failures in the group’s financial culture” within its projects business unit and its engagement with the group finance team.
Wood Group enjoyed a peak valuation of about £5 billion but late last year was acquired for £216 million by Dubai-based firm Sidara. Its shares are due to be de-listed on 10 March.
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