WANdisco has uncovered “significant, sophisticated and potentially fraudulent irregularities” and requested that its shares are suspended from trading.
The Sheffield company had expected to announce revenues of $24m, but it now appears they could be “as low as $9m.”
It released a statement early this morning to say:
“Following investigations undertaken by the CFO and CEO, and as reported to the Board of Directors of the Company, significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee, have been discovered. These irregularities give rise to a potential material mis-statement of the Company’s financial position.
“The identification of these irregularities will significantly impact the Company’s cash position and lead to a material uncertainty regarding its overall financial position and significant going concern issues. The Board now expects that anticipated FY22 revenue could be as low as USD 9 million and not USD 24 million as previously reported. In addition, the Company has no confidence in its announced FY22 bookings expectations.
“As a result, the Company has requested that its shares be suspended from trading on AIM while it conducts an investigation with its external legal and professional advisers into the nature of this activity and its true financial position.
“The Company will make further announcements in due course.”
WANdisco is listed on the AIM Stock Exchange, which confirmed this morning that trading had been “temporarily suspended, pending an announcement.”