“Shares are still suspended and investors will feel burned anyway.” “As we've previously noted, there are few, if any, capital raising routes left for Wandisco,” he added. Megabuyte analyst Tom Kennedy speculated in a client note that the headcount cuts could give the company a lifeline “until early 2024”, highlighting “its long history of very heavy cash burn.”. Immediately before the share suspension Wandisco founder and chief executive David Richards suggested he was pursuing a dual UK-US listing for the £880m company. Wandisco blamed the “potentially fraudulent irregularities” on “one senior sales employee”.įorensic accountants from FRP Advisory are now combing through the Sheffield-based firm’s books, while the FCA opened an investigation into Wandisco in April. The data replication company suspended its shares from trading on the Aim junior market in March after revealing a suspected $15m (£12.6m) accounting fraud.Īn internal investigation found that $15m of revenues and $115m of sales the firm had reported were completely invented. Ken Lever, the former Biffa boss who is now Wandisco’s executive chairman, said: “Regrettably, the proposed action is a necessary step to responsibly position Wandisco for long term growth.”
The company announced on Thursday that 30pc of employees will leave as part of a fresh cost-cutting drive. Wandisco is to lay off a third of its staff as the Financial Conduct Authority (FCA) continues an investigation into alleged fraud at the British tech champion.
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