© DC Thomson 
The UK’s financial regulator, the Financial Conduct Authority, is set to investigate Aberdeen services giant Wood, adding to the firm’s troubles.
The Granite City-based engineering business is set to be investigated across the period from the start of 2023 to November 2024.
This move follows an independent investigation announced by Wood late last year.
Wood’s decision followed a share price collapse after the firm announced that it had taken actions to write off contracts acquired in its £2.2 billion takeover of Amec Foster Wheeler in 2017 are still impacting the firm’s bottom line.
The firm wrote in a shareholder update that it “will cooperate fully” with the finance watchdog as it carries out the investigation.
The independent review of its books, announced in November and carried out by Deloitte, followed “disappointing” results in its third quarter of 2024, which it was battling in an attempt to deliver a three-year turnaround strategy.
In February, the service firm’s chief financial officer, Arvind Balan, resigned after it was discovered that he had an “incorrect description of his professional qualifications in various statements in the public domain”.
He was soon replaced by Iain Torrens, who took over as interim financial boss while Wood hunts for a permanent replacement. Torrens remains with the company at the time of writing.
Wood review uncovers ‘material weaknesses and failures’
Currently, Wood is not trading shares after it missed a stock market deadline to publish its full year results.
The firm claimed it was unable to publish its 2024 figures in April due to the “extensive work needed” to complete an audit of its accounts.
In March, the independent review reported “material weaknesses and failures” in the financial culture of the Aberdeen-headquartered firm.
Deloitte reported “inappropriate management pressure” and “over-optimism and/or lack of evidence” in respect of accounting judgements at the firm.
This comes as Wood is wrapped up in a takeover bid from Sidara, which is poised to see the firm sold for a bargain price.
The latest in a series of put up or shut up deadlines for the takeover is set for Monday; however, Wood has continuously granted extensions to its Middle Eastern suitor.
In 2024, the firm, also known as Dar Al-Handasah Consultants Shair and Partners, offered up $1.65 billion for the Aberdeen business.
However, its latest offer has seen the value drop considerably to £240 million. Although Sidara would still be adding a 10p per share value to the firm’s latest trading price under this deal.
