Revolut’s auditors ‘unable to verify’ three quarters of its revenues, report shows
The auditor for fintech giant Revolut has said it was unable to independently verify three-quarters of the revenue in the company’s 2021 accounts.
BDO warned some information may be “materially misstated” and said it could not provide assurance over £477 million of the firm’s revenue, adding that its “IT systems weren’t designed in such a way that would allow for IT or business process controls to be effectively tested throughout the year.”
A Revolut spokesperson told Reuters the bank’s overall revenue figure “was not in question” and BDO’s concerns were “remedied in 2021”.
It comes as Revolut today said it was “really near the very final stages” of securing a banking license in the UK as it reported a near-tripling of sales and a breakthrough to profits in 2021 in a long anticipated set of results.
The Canary Wharf-based firm, which offers debit cards and crypto services to its 27 million customers, posted revenues of £636 million for the year to end-December 2021, while net profits topped £26 million, turning around a loss of £223 million the year before.
The recent turmoil in the crypto market, which has seen the value of Bitcoin plunge amid a string of bankruptcies, caused Revolut’s own turnover in digital asset activity to shrink in 2022, with crypto services accounting for only 5 to 10% of the total income last year.
But despite the decline, the company said it still sales growth of 33% in 2022 to £850 million. Revolut could not confirm profits for 2022, but chief financial officer Mikko Salovaara told the Standard profitability would show “nothing meaningful in terms of a change versus 2021.”
He said: “We’re going to continue to roll out in new geographies at a quick pace…the business to me feels quite resilient, diversified and sustainable.
“I think we’re really near the very final stages and we’ll be delighted if and when we receive a [UK banking] license – it’s the right thing for customers with things like deposit insurance, and it’s the right thing for Revolut.”
Revolut’s accounts were published two months after the statutory filing deadline. Salovaara told Reuters the delay was because “our accounting systems needed replacement.”