WANdisco’s credibility has been shattered after uncovering a potential fraud. Over the past six months it has been shouting from the rooftops about significant revenue growth thanks to winning lots of contracts.
Only three days ago it talked about listing in the US, something that many tech companies do to obtain a higher valuation.
AJ Bell’s Russ Mould said: “Now its dreams have gone up in smoke. The idea that someone in the company has potentially been fiddling the books is a nightmare for management and shareholders. To go from aspirations of a US stock market listing to having your shares suspended in less than a week is a total embarrassment.
“What’s concerning is the apparent lack of controls in the company. The idea that a single person has managed to inflate the revenue by significantly more than management now believes it will report goes to show there is something very wrong with how the business is run.
“References to ‘significant going concern issues’ is even more shocking. It suggests the company desperately needs a cash injection to keep going and it’s hard to see who would stump up the readies in light of a potential fraud. A heavily discounted fundraising now seems its only option.”
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