Software firm WANdisco suspends shares amid ‘fraudulent irregularities’

theguardian.com:

British software company WANdisco, which in recent days joined the ranks of firms considering a US stock market listing, 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 said its chief executive and chief financial officer had reported their findings to its board, but added that “these irregularities give rise to a potential material mis-statement of the company’s financial position”.

As a result, WANdisco expects its anticipated revenue for 2022 could be as low as $9m (£7.6m), compared with the $24m it had previously stated.

It also said it has no confidence in its previously announced expectations for its revenue forecasts for the past year.

The company, which has headquarters in Sheffield and California, said the “irregularities” would also “significantly impact” its cash position.

In addition, it said these have prompted a “material uncertainty regarding its overall financial position”, raising questions about the company’s ability to continue operating.

WANdisco has requested that its shares be suspended from trading on London’s junior Alternative Investment Market (AIM).

The company said it is going to carry out an investigation with external legal and professional advisers, to find out exactly what has taken place and to determine its true financial position.

WANdisco, which had a market value approaching £1bn before Thursday’s