A ‘wasted’ year for WANdisco but growth is on the horizon, says new boss
Troubled data firm WANdisco today announced loss-making results for 2022 but the new leadership hopes they can put a turbulent period behind them.
WANdisco reported operative losses of $28.2m (£22.4m), a small triumph compared to 2021 profits which came in at negative $37.6m (£29.8m).
The Sheffield-based company increased revenues of $9.7m (£7.7m), up by $2.4m (£1.9m) from the year before, but posted a $8.7m (£6.9m) decrease in cash despite reduced overheads.
Commenting on the preliminary results, interim boss Stephen Kelly said they showed that 2022 “in many respects turned out to be a wasted year”.
“In reality, in 2022 we achieved little growth in sales bookings and revenue as compared to 2021”.
Going forwards, Kelly said he is optimistic about 2023 and is “determined that it will serve as a real transition year towards a sustainable, growth-focused future for our business”.
Ken Lever, interim non-executive chair, echoed Kelly’s statements regarding the future.
“As we put the Irregularities and the Independent Investigation behind us I want to be more forward looking so that I can support and challenge the executive management”, Lever said.
He added that the company plans to build on its “leading, differentiated” technology.
WANdisco will hopefully see growth in 2024 said Kelly, who is set to take up a role as full-time CEO provided the company can raise $30m via equity and lift its share suspension.
In May, he stepped in to replace former chief executive David Richards after the latter stepped down after an internal investigation revealed “potentially fraudulent irregularities” on WANdisco’s books. It found falsified sales and revenues worth a total of $130m (£103m).
As WANdisco tried to rescue itself from the accounting scandal and fraud probe by the Financial Conduct Authority, the firm slashed its headcount by nearly a third.