Yahoo Finance Software firm WANdisco suspends shares amid ‘fraudulent irregularities’
The British software company WANdisco has discovered “potentially fraudulent irregularities” in its sales and revenue, and has asked for its shares to be suspended from trading.
In an unexpected trading update to the stock market on Thursday, WANdisco said bosses had uncovered “significant, sophisticated and potentially fraudulent irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee”.
The big data company, which in recent days joined the ranks of UK firms considering a US stock market listing, said its chief executive and chief financial officer had reported their findings to its board.
“These irregularities give rise to a potential material mis-statement of the company’s financial position,” said WANdisco. As a result, it said it expected anticipated revenue for 2022 could be as low as $9m (£7.6m), compared with a previously stated $24m.
The company also said it had no confidence in its previously announced revenue forecasts for the past year.
WANdisco, which has headquarters in Sheffield and California, said the irregularities would also have a significantly impact on its cash position.
In addition, it said these had prompted a “material uncertainty regarding its overall financial position”, raising questions about the company’s ability to continue operating.
WANdisco requested its shares be suspended from trading on London’s junior Alternative Investment Market (AIM).
The company said it would carry out an investigation with external legal and professional advisers to establish what exactly had taken place and to determine the company’s true financial position. It added that it would make future announcements on the matter in due course.
WANdisco, which had a market value approaching £1bn before Thursday’s update to investors, was founded in Silicon Valley in 2005. It now employs more than 180 people in Sheffield and California.
In 2013, the company became the one-season shirt sponsor of Sheffield Wednesday, one of the English city’s football teams. WANdisco describes itself as offering a “data activation platform” to help businesses with digital transformation.
The company hit the headlines on Monday, when it said it was considering a dual listing.
