John Wood CFO Arvind Bala resigns over qualification misstatement

(Alliance News) - John Wood Group PLC on Wednesday said Chief Financial Officer Arvind Balan has resigned with immediate effect after it emerged that his professional qualifications had been incorrectly described in public statements.

Balan admitted to an "honest oversight" in referring to himself as a chartered accountant rather than a certified practicing accountant. He said his decision to step down was intended to "minimise distraction at this very pivotal time with our investors and lenders."

John Wood said an announcement on his successor and interim cover will be made in due course.

The resignation comes as the Aberdeen-based engineering and consulting business struggles with weak trading and financial difficulties. Friday last week, John Wood said it was implementing further cost-cutting measures and considering refinancing options to offset cash outflows and mounting liabilities.

The company expects negative free cash flow of between USD150 million and USD200 million in 2025 and plans to raise up to USD200 million through asset disposals. Additionally, it is targeting USD85 million in annualised cost savings from 2026, alongside previously announced USD60 million in reductions for 2025.

John Wood has also been conducting an independent review of its projects business, accounting, and governance after taking exceptional contract write-offs. While the company said the review is not expected to impact its cash position materially, it is assessing potential prior-year adjustments that may affect previously reported earnings.

Shares in John Wood have fallen sharply in recent months, plummeting 34% last week. On Tuesday, its stock closed 16% down at 24.54 pence in London.

By Eva Castanedo, Alliance News reporter

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