WANdisco: Crisis-hit tech firm calls in tech stalwart Stephen Kelly to steady the ship
WANdisco has announced tech stalwart Stephen Kelly will stay on as its permanent chief today after the firm was readmitted to trading yesterday following a fraud scandal.
The firm has been mired in crisis since revealing in April that over $115m in sales bookings would be written off its results due to “potentially fraudulent irregularities” on its books.
The firm parachuted in the former boss of FTSE100 software firm Sage to steady the ship after its shares were suspended. Kelly was tasked with overseeing an emergency capital raise which got the go-ahead from shareholders yesterday.
In a statement today, Wandisco’s board announced that Kelly would stay on at the helm.
“Following the successful refinancing of WANdisco and the lifting of the share suspension, we are now able to formally shape the Board to support growth and value creation for shareholders,” said Ken Lever, Interim Non-Executive Chairman.
Shares in the firm cratered after readmission to the market yesterday, plunging more than 96 per cent after the market opened.
The announcement marks the latest turnaround bid launched by the firm after it slashed its headcount by 30 per cent earlier this year and reduced its annual cost base by some $16m.
Yesterday it emerged that Richards had also channelled money into football club Sheffield Wednesday, which he supports, without the knowledge of WANdisco’s board, the Times reported.
The firm paid $362,691 to the club “on behalf” of EyUp Skills, founded by Richards and his wife, Jane in order for the firm’s logo to appear on the firm’s shirt.
“The board was not informed of these related-party transactions at the time and are unable to provide a comment on the fair and reasonableness of each transaction,” WANdisco said.