Technology firm WANdisco suspends shares after uncovering 'potentially fraudulent irregularities'

Technology firm WANdisco has suspended its shares on the Alternative Investment Market after it uncovered “potentially fraudulent irregularities” that could result in its sales being much lower than previously reported.
By Greg Wright
Published 9th Mar 2023, 11:26 BST
Updated 9th Mar 2023, 11:27 BST

In a statement, WANdisco, told investors it was publishing a revision to its anticipated trading performance and financial position.

The statement said: “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.

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“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 (full year 2022) revenue could be as low as $9m and not $24m as previously reported. In addition, the company has no confidence in its announced FY22 bookings expectations.

In a statement, WANdisco said: "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."In a statement, WANdisco said: "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."
In a statement, WANdisco said: "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."

"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.”

A spokesman for WANdisco declined to comment further when approached by The Yorkshire Post.

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