John Wood Group's project accounting was inflated to meet targets, earning a £13m FCA fine

John Wood Group PLC is an Aberdeen-based engineering and consulting company whose Projects business unit managed large fixed-price energy and materials contracts. Between the full-year 2022 results and the first half of 2024, accounting judgements in that unit were influenced by pressure to maintain previously reported financial performance, leading to overstated profits and understated liabilities.

The issues surfaced in late 2024 after auditor concerns prompted an independent review. The FCA later found that Wood Group had failed to account properly for expected losses, recognised revenue without adequate support, released provisions to offset losses elsewhere, and overstated cost savings. The regulator said operating profit was cumulatively overstated by tens of millions of dollars across the affected periods.

Wood Group's share price fell by about 78% between November 2024 and April 2025, trading was suspended in May 2025 after it missed its 2024 reporting deadline, and its shares were removed from the London Stock Exchange in March 2026. The FCA fined the company £12,993,700 in March 2026, reduced from £18,562,500 because it cooperated and accepted the findings.