(Bloomberg) -- John Wood Group Plc tumbled the most on record in London trading after announcing a review to address poor performance in its projects division.
The shares sank as much as 49%, the biggest decline since starting to trade in 2002. Following several contract writeoffs earlier this year, the engineering company has commissioned an independent review to focus on projects, accounting, governance and controls — and assess whether any prior-year restatement may be required.
“Our projects business delivered a disappointing quarter, impacted by delayed awards in our chemicals business and our continued weakness in minerals and life sciences,” Chief Executive Officer Ken Gilmartin said Thursday. “As such, we continue to take actions to redress this underperformance.”
The company is partway through a three-year strategic turnaround program. Its shares have slumped since the summer following the end of takeover talks with engineering firm Sidara.
Wood reported an order book of around $5.4 billion as of Sept. 30, lower than the $6.1 billion position in June amid continued weakness in the projects unit. Third-quarter adjusted earnings before interest, taxes, depreciation and amortization were lower than a year earlier as poor results from the projects business more than offset growth in the consulting and operations divisions.
Sidara ended a months-long courtship of Wood in early August, citing “rising geopolitical risks and financial market uncertainty.” Sidara’s decision not to pursue a fourth and final approach came about a year after Apollo Global Management Inc. also walked away from a possible takeover of the company.
The shares traded down 41% at 73 pence as of 9:24 a.m. in London.
©2024 Bloomberg L.P.