City watchdog launches Wandisco probe

The Financial Conduct Authority has launched an investigation into Wandisco following revelations of ‘fraudulent irregularities’ that led to the departure of top executives earlier in April.

The troubled AIM-listed software company’s chief executive and finance boss resigned after an internal probe found the group had falsified almost $15million in revenues last year.

Wandisco told investors on Thursday it had been notified by the regulator of its investigation, which was launched on concerns it may have ‘materially mis-stated the company’s financial position’ in statements made between 1 January 2022 and 9 March 2023.

Last month Wandisco discovered ‘potential fraudulent irregularities’, with orders giving rise to revenue of $14.9million and sales bookings worth $115.4million found to be false.

Revenues last year should have been $9.7million, rather than $24million, while bookings should have been $11.4million, instead of $127million.

The findings by FRP Advisory also continue to support the initial view that one senior sales employee was responsible for the irregularities.

‘FRP Advisory is continuing to pursue the investigation to reach a conclusion,’ the company said at the time.

Wandisco shares were suspended last month after the company announced that an investigation was under way to identify its ‘true financial position’.

It came only days after Wandisco announced it was eyeing an additional listing of its shares in New York.

Wandisco said on Thursday: ‘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.’

The FCA declined to comment.