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WANdisco CEO and CFO quit as investigation finds $115m of false sales

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WANdisco said revenues recorded for that time frame should be $9m ($7m) instead of the previously recorded $15m and found over $115 million (£93.3m) in missing bookings.


The chief executive and finance boss of troubled tech firm WANdisco have stepped down today after an investigation found that $15m of revenues and $115m of sales last year were completely made up.

Sheffield-based WANdisco suspended trading on the London Stock Exchange in March after an internal investigation uncovered “potentially fraudulent irregularities” on its books, which may have caused it to massively overstate its financial performance for the previous year.

In a statement this morning, the firm said an investigation had led by FRP Advisory confirmed the findings and it would now slash the previous figures given to the market.

Revenues for the full year of 2022 have been revised to $9m ($7m) instead of $15m previously recorded, while over $115m in sales bookings have been written off as false. Total sales for the year have now been recorded at just $11.4m, down from $127m.

“The results of the independent investigation to date continue to support the initial view that the irregularities are as a result of the actions of one senior sales employee,” WANdisco said. “FRP Advisory is continuing to pursue the investigation to reach a conclusion.”

WANdisco said the pair’s exit is not related to FRP’s findings but the future of the business would best be pursued under “new leadership”.

Kenneth Lever will assume the role of executive chairman pending the conclusion of a formal process to appoint a new chief executive and Ijoma Maluza will take the role of interim chief financial officer, effective from the 11th April.

“Over the years David and Erik have contributed significant time and effort to establishing and developing WANdisco, ” said Kenneth Lever, executive chairman.

“They remain meaningful shareholders in the business and continue to believe in the long-term, successful future for this company and its unique technology.”

The findings mark a sharp fall from grace for the feted data firm, which had been cheered by analysts earlier this year for a bumper set of figures.

Just days prior to the initial announcement of potentially fraudulent irregularities, WANdisco said it was scoping out a dual listing in New York to ramp up its US growth plans.