Fraud fears see Wandisco shares suspended: Bosses uncover ‘potentially fraudulent irregularities’ in company finances
Financial irregularities: Wandisco has dropped its forecasts for 2022
Shares in Wandisco were suspended yesterday after bosses discovered ‘potentially fraudulent irregularities’ in the company’s finances.
Days after the AIM-listed software group revealed it was considering a move to the New York Stock Exchange, it dismissed its 2022 forecast and said an investigation was underway to identify its “true financial situation”.
The £875million cloud computing specialist said forecast revenue for 2022 could be as low as £7.6million, down from £20million previously reported, due to related irregularities to “purchases received and associated revenue and bookings”.
The company, founded in Silicon Valley in 2005 and headquartered in Sheffield and California, became the latest London-listed company to say it was considering an “additional listing” in the United States.
Wandisco, whose technology helps companies move and analyze data, said it would retain its listing on London’s junior Alternative Investment Market (AIM).
Shares had risen more than sixfold over the past year, with the stock hitting a 12-month high after announcing plans for a possible move to the United States.
Talk of a move to New York raised further questions about the appeal of being listed in London.
But Russ Mould, chief investment officer at broker AJ Bell, said Wandisco’s credibility was now “shattered”.
And Victoria Scholar, chief investment officer at Interactive Investor, said the potential fraud could spell “financial disaster” for the software company.