(Alliance News) - WANdisco PLC on Friday confirmed that its independent investigation has indicated that irregularities in its financial results can be traced back to one senior sale employee.
In March, WANdisco suspended trading in its shares after uncovering signs of possible "sophisticated" fraudulent activity, just days after the company had announced it was exploring a potential US listing.
As a result, WANdisco commissioned an independent investigation by FRP Advisory.
At the time, WANdisco said the irregularities would "significantly impact" its cash position and lead to "material uncertainty" regarding its overall financial position.
Earlier this month, the company said the investigation so far had confirmed that both the purchase orders giving rise to revenue of USD14.9 million and sales bookings of USD115.5 million recorded for 2022 were false.
Accordingly, it said 2022 revenue should have been USD9.7 million and not USD24 million as previously reported. Bookings should have been USD11.4 million, instead of USD127 million.
"The results of the independent investigation to date continue to support the initial view that the irregularities are as a result of the actions of one senior sales employee," WANdisco said at the start of April.
WANdisco on Friday confirmed that all of the purchase orders associated with the senior sales employee in question are illegitimate. However, all of the other purchase orders are legitimate.
The impact of these findings on the company accounts therefore remain unchanged from the earlier update.
"There is no credible evidence that there are any customers using the company's technology and who believe they are making payments to either the company, an authorised reseller or partner but who are instead making payments unwittingly and/or unknowingly to an unauthorised third party. However, notwithstanding that it would be technically extremely difficult for a third party to implement and deploy the company's product without the knowledge and support of the company, it is not possible to provide a completely definitive conclusion that there has been no unauthorised use by a third party," WANdisco added.
These conclusions and the basis for them will now be passed to the WANdisco's auditors, so that the process to conclude the company's financial 2022 financial results can continue.
Executive Chair Kenneth Lever said: "We are pleased to receive these findings, which confirm the limits of the impact of the identified irregularities in line with our announcement of April 3. The board remains squarely focused on workstreams to lift the suspension of our shares as soon as is practicable and position WANdisco for long-term growth and success."
WANdisco also confirmed that Ijoma Maluza has begun as chief financial officer.
It added that it continues to advance its process to secure a new chief executive officer.
In March, the company also announced that Co-Founder & CEO David Richards and CFO Erik Miller had stepped down. WANdisco assured investors that the board changes were not connected to the findings.
WANdisco shares have been suspended from trading in London since the end of March.
"The board remains committed to seeking the lifting of the suspension of trading in the company's shares on AIM as quickly as possible and is working with its nominated adviser to achieve this," WANdisco said on Friday.
By Sophie Rose, Alliance News reporter
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