Smacked With A Wooden Spoon.
Thoughts on Wood Group Plc following yesterday's concerning Q3 update.
Disclaimer
Value Situations is NOT investment advice and the author is not an investment advisor.
All content on this website and in the newsletter, and all other communication and correspondence from its author, is for informational and educational purposes only and should not in any circumstances, whether express or implied, be considered to be advice of an investment, legal or any other nature. Please carry out your own research and due diligence.
Yesterday was a very rough day for shareholders of Value Sits Model Portfolio name Wood Group Plc (WG).
The stock crashed -60% (!) following the release of a Q3 trading update that not only reported weak Q3 performance, but which also included the somewhat alarming announcement that the board have appointed Deloitte to conduct an independent accountant’s review “in response to dialogue” with the company’s auditor (KPMG). The review is to “focus on reported positions on contracts in Projects, accounting, governance and controls, including whether any prior year restatement may be required.”
Clearly the market is concerned there may be a nasty surprise lurking in WG’s books, but let’s examine the facts and assess the situation…