3 Apr 2023 07:00
3 April 2023
WANdisco plc
("WANdisco" or the "Company")
Board Change and Investigation Update
WANdisco (LSE: WAND), the data activation platform, provides the following update on its Board, operations and leadership structure in addition to an interim update on the independent investigation being undertaken by FRP Advisory.
David Richards, Co-founder and Chief Executive Officer and Erik Miller, Chief Financial Officer, have decided to step down from the WANdisco Board and leadership team, effective today.
Since the Company's announcement of 9 March 2023, the Company has continued to operate and trade in the ordinary course. Assisted by Alvarez and Marsal, work has started to progress a number of work streams with the objective to lift the suspension of the Company's shares and position the Company for long-term growth and success as soon as practicable. It is in the best interests of all stakeholders if this objective is pursued under new leadership.
Ken Lever will assume the role of Executive Chairman pending the conclusion of a formal process to appoint a new chief executive, which will commence shortly. The Company is pleased to announce the appointment of Ijoma Maluza as Interim Chief Financial Officer, effective from 11 April 2023. Ijoma was previously the Chief Financial Officer of Blue Prism plc, a leader in intelligent automation software.
The Board changes are not connected to the findings to date of the independent investigation, which is being undertaken by FRP Advisory. The independent investigation is progressing well and has to date primarily focused on the received purchase orders and related revenue and sales bookings as represented by one senior sales employee.
The independent investigation has confirmed that purchase orders giving rise to recognised revenue of $14,936,215 for FY22 are false and that sales bookings of $115,461,616 recorded in FY22 are also false. Accordingly, revenue for the financial year to 31 December 2022 referenced in the Trading Update dated 11 January 2023 should have been $9.7 million (unaudited) as compared with not less than $24m (unaudited) and bookings should have been $11.4m (unaudited) compared with $127m (unaudited).
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. FRP Advisory is continuing to pursue the investigation to reach a conclusion.
There will be further updates on the investigation and the Company's plans going forward as appropriate.
Kenneth Lever, Executive Chairman, said:
"Over the years David and Erik have contributed significant time and effort to establishing and developing WANdisco. They remain meaningful shareholders in the business and continue to believe in the long-term, successful future for this Company and its unique technology."
David Richards said:
"I am sad to be leaving WANdisco after 18 extremely enjoyable years. I remain a passionate supporter and significant shareholder of the Company."
For further information, please contact:
WANdisco plc | via FTI Consulting |
FTI Consulting |
+44 (0)20 3727 1137 |
Matt Dixon / Rob Mindell / Kwaku Aning |
|
Stifel (Nomad and Joint Broker) |
+44 (0)20 7710 7600 |
Fred Walsh / Richard Short / Tom Marsh |
|
Liberum (Joint Broker)
Max Jones / Kate Bannatyne |
+44 (0)20 3100 2000 |
About WANdisco
WANdisco is the data activation platform for accelerating digital transformation at scale. WANdisco makes infinite data actionable across clouds and enterprises in real time. WANdisco customers unleash the business value of the cloud with zero downtime, data loss, or disruption to fuel AI and machine learning, create new services, and transform businesses. For more information about WANdisco, visit www.wandisco.com