Troubled tech firm WANdisco has confirmed it is subject to an investigation by the Financial Conduct Authority following "potentially fraudulent" activity coming to light.
The Sheffield and California-based data specialist posted an update to the London Stock Exchange this morning in which it said it had been notified of an investigation into certain financial statements made between January 1, 2022 and March 9, 2023. WANdisco said these statements "may have materially mis-stated the company's financial position."
It follows the emergence of major concerns at the tech company which centre around potentially fraudulent activity undertaken by one salesperson. The significant "irregularities" could reduce the firm's stated 2022 revenue by as much as £12.6m ($15m), taking it from £20.2m ($24m) to just £7.5m ($9m).
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In its update to the market about the FCA action, WANdisco said: "The board is co-operating with the FCA in this endeavour, in addition to continuing to support the completion of the independent investigation already being undertaken by FRP Advisory."
Trading of the firm's shares on AIM is suspended as it conducts an investigation led by industry veteran Ken Lever. When the discovery came to light, WANdisco said it could lead to significant going concern issues and now meant it had "no confidence" in its announced 2022 bookings expectations.
Last month's shock update came only days after WANdisco said it was considering a flotation in the US - a move that would have given it dual listings. In January, WANdisco said that it was expecting revenues to have tripled in 2022 and be above $24m, while bookings were reported to have grown a huge 967% to $127m.
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