Fraud fears see shares in Wandisco suspended

Wandisco shares were suspended yesterday after bosses discovered “potentially fraudulent irregularities” in corporate finances.

Days after the AIM-listed software group revealed it was eyeing a move to the New York stock market, it brushed aside its 2022 outlook, saying it was investigating its “true financial position.” identify.

The £875 million cloud computing specialist said its expected revenue for 2022 could be as low as £7.6 million, compared to the aforementioned £20 million, due to irregularities related to “purchase orders received and related revenue and bookings”. ‘.

Founded in Silicon Valley in 2005 with headquarters in Sheffield and California, the company became the last London-listed company to say it was exploring an “additional listing” in the US.

Wandisco, whose technology helps companies move and analyze data, said it will retain its listing on London’s junior Alternative Investment Market (AIM).

Shares were up more than six-fold over the past year, with the stock hitting a 12-month high after announcing plans for a potential move in the US.

Talk of a move to New York has raised further questions about the attractiveness of a London listing.

But Russ Mould, investment director at broker AJ Bell, said Wandisco’s credibility is now “shattered.”

And Victoria Scholar, head of investment at Interactive Investor, said the potential fraud could spell “financial disaster” for the software company.