Wandisco uncovers 'potentially fraudulent' activity by senior sales employee

Software company Wandisco warned on profits on Thursday after uncovering "significant, sophisticated and potentially fraudulent irregularities".

Wandisco stated investigations undertaken by its chief financial and executive officers had discovered irregularities with regard to received purchase orders and related revenue and bookings, as represented by one senior sales employee.

The AIM-listed group cautioned that the irregularities had given rise to "a potential material mis-statement" of its financial position.

"The identification of these irregularities will significantly impact the company's cash position and lead to a material uncertainty regarding its overall financial position and significant going concern issues," said Wandisco.

"The board now expects that anticipated FY22 revenue could be as low as $9.0m and not $24.0m as previously reported. In addition, the company has no confidence in its announced FY22 bookings expectations."

As a result, Wandisco requested its shares be suspended from trading on while it conducts an investigation with its external legal and professional advisers into the nature of this activity and its true financial position.

As of 0925 GMT, Wandisco shares were up 1.10% at 1,324.41p.

Reporting by Iain Gilbert at Sharecast.com