Wood Group plc (LSE:WG.) saw its shares surge as much as 38% to 25 pence on Thursday after trading resumed in London, ending a five-month suspension triggered by delays in publishing its financial accounts. The rally reflects investor reaction to the company’s long-awaited readmission and the pending £216 million takeover offer from UAE-based engineering group Sidara, valuing the stock at 30 pence per share.
Trading was suspended earlier this year following an independent review that exposed “failures” in Wood Group’s financial culture, including instances where information was withheld from auditors. The company has since released its 2024 annual report and interim results for the first half of 2025, allowing the resumption of trading. The 2024 accounts revealed a pre-tax loss from continuing operations of $2.7 billion, compared with $152 million in 2023, largely due to a $2.2 billion goodwill and intangible asset impairment. For the first half of 2025, Wood Group reported a $67.1 million pre-tax loss and negative cash flow of $404 million.
Auditors KPMG issued a qualified opinion on the 2024 results, citing time constraints and an inability to obtain sufficient audit evidence. Analysts at Peel Hunt described the half-year results as “terrible,” noting weak financial performance aside from a rise in new orders.
Wood Group, which provides engineering and project management services across the global energy and mining sectors, employs about 35,000 people in more than 60 countries. Once valued at £5.3 billion in 2018, the company has struggled since its £2.2 billion acquisition of Amec Foster Wheeler, burdened by high debt and heavy cash outflows. Its market capitalization had fallen to just £126 million before the suspension.
Shareholders are scheduled to vote later this month on the Sidara takeover proposal, which the board has recommended, saying alternative options would “likely generate materially less, and potentially zero, value for shareholders.” The latest offer is more than 80% lower than Sidara’s previous bids rejected last year.
In a statement accompanying the 2024 results, Chair Roy Franklin described the past year as “an incredibly challenging period” and expressed disappointment at the company’s position. He has announced plans to step down once the company’s future becomes clearer, while Chief Executive Ken Gilmartin, who has led the group since July 2022, is expected to depart following the shareholder vote on the Sidara deal.
More about Wood Group plc
Wood Group plc is a global engineering and consulting company providing project management, operations, and technical services to clients in the energy, industrial, and mining sectors. Headquartered in Aberdeen, Scotland, the company operates in more than 60 countries and employs approximately 35,000 people worldwide.
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