LONDON (Alliance News) - Payments company Earthport PLC on Thursday said its Baydonhill foreign exchange subsidiary may be facing a loss of up to GBP5.0 million related to one of its corporate customers.
The firm said the customer in question failed to honour pre-confirmed bank payment instructions, and a subsequent investigation has indicated the customer may have "intentionally engaged in fraudulent activity", Earthport said.
Additional inquiries then found the customer had filed notice to appoint an administrator, it added.
Earthport said the relevant authorities have been informed about the incident and said it will explore all options for recovering the funds. It added the incident was isolated to the customer in question and did not impact other client funds.
Earthport said there was no impact on its core business and said while the financial impact of the issue was "material", it has enough capital to continue pursuing its existing growth strategy.
Earthport shares were down 6.5% to 23.24 pence, having set a new 52-week low of 21.88p in response to the news.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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