Fraud fears see shares in Wandisco suspended
Fraud fears see shares in Wandisco suspended: Bosses find ‘potentially fraudulent irregularities’ in company finances
Financial irregularities: Wandisco has thrown out its guidance for 2022
Wandisco shares were suspended yesterday after bosses discovered ‘potentially fraudulent irregularities’ in company finances.
Days after the AIM-listed software group revealed it was eyeing a move to the stock market in New York, it threw out its guidance for 2022 and said an investigation was under way to identify its ‘true financial position’.
The £875million cloud computing specialist said anticipated revenue for 2022 could be as low as £7.6million, compared with the £20million previously stated, because of irregularities related to ‘received purchase orders and related revenue and bookings’.
The company, set up in Silicon Valley in 2005 with headquarters in Sheffield and California, became the latest London-listed firm to say it was exploring an ‘additional listing’ in the US.
Wandisco, whose technology helps businesses move and analyse data, said it will hold on to its listing on London’s junior Alternative Investment Market (AIM).
Shares had jumped more than sixfold in the past year, with the stock hitting a 12-month high after it announced plans of a potential US move.
Talk of a shift to New York has raised further questions about the attractiveness of being listed in London.
But Russ Mould, investment director at broker AJ Bell, said Wandisco’s credibility has now been ‘shattered’.
And Victoria Scholar, head of investment at Interactive Investor, said the potential fraud could spell ‘financial disaster’ for the software company.