Damning Business Update!31 Mar 2025 07:33
And this is why the ii shorts keep increasing! Writing on the wall here now. And that debt circa 1.2 billion needs waivers eek this is not looking good at all! Suspension looming re audited accounts really not a good look for FTSE 250 listed company! Back into 20’s it goes! IMHO DYOR
Highlights are -
*As a result of the Review, Wood has identified material weaknesses and failures in the Group's financial culture within the Projects business unit and engagement between Group Finance and Projects. This included inappropriate management pressure and override to maintain previously reported positions, including through unsupported dispensations, and over-optimism and/or lack of evidence in respect of accounting judgements. The cultural failings appear to have led to instances of information being inappropriately withheld from, and unreliable information being provided to, Wood's auditors.
*Accounting implications
As a result of the Review, a number of prior year adjustments are expected to be required to the income statement and balance sheet:
· Predominantly impacting the reported performance of the Projects business unit in prior periods with no material impact on the Group's historical cash flow generation
· Material prior year P&L and balance sheet adjustments are expected for FY22, FY23 and HY24
· Material restatements are expected for adjusted EBITDA and adjusted EBIT for FY22 and FY23
· Temporary retrospective waivers (valid to 30 April 2025) have been obtained under committed debt facilities for historical non-compliance with prior period financial covenants
*Publication of FY24 results
Given the timing of the Review and prior year adjustments, and the extensive work needed to conclude the audit, it is now expected that the Company will not publish its FY24 accounts by 30 April 2025.
In that case, the Company's shares would be suspended from trading from that time as work progresses towards completion of its FY24 accounts.