Business advisory firm to lead investigation into potential fraud at WANdisco
Sheffield-headquartered WANdisco, which suspended trading on the Alternative Investment Market after revealing “potentially fraudulent irregularities,” has appointed FRP Advisory to lead an independent investigation into the matter.
The technology business also confirms it has formed an investigation committee comprised of independent non-executive directors, Peter Lees and Karl Monaghan to support the investigation process.
It adds: “existing external legal and professional advisers will also support the process, as necessary.”
WANdisco, which had been had been enjoying a successful year with its share price quadrupling to take its market value close to £1bn, publicly revealed the potential fraud yesterday morning – 9 March – warning this could result in its sales being 60% lower than expected.
The business said there was a “material uncertainty” regarding its overall financial position and significant going concern issues.
It explained it had discovered “significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee”.
Its board now expects anticipated FY22 revenue could be as low as $9m and not $24m as previously reported. And the company says it has no confidence in its announced FY22 bookings expectations.
