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WANdisco resumes trading on AIM with major value drop

WANdisco trading
Image credit: T. Schneider via Shutterstock

Embattled data firm WANdisco has resumed trading on London’s Alternative Investment Market (AIM) after a four-month suspension.

The Sheffield-headquartered company returned to trading on Tuesday with a value drop of 96% from its last share price before its suspension.

WANdisco trading was halted in March after an investigation found the company may have fraudulently misrepresented its revenue by more than £12m.

Since then, the company has faced layoffs, a probe from the Financial Conduct Authority (FCA) and the resignations of its CEO and CFO.

Former boss David Richards, along with financial chief Erik Miller, stepped down in April. The two were originally behind the internal investigation that discovered the potentially fraudulent activity.

WANdisco has claimed that the resignations were not related to the controversy in the company accounts.

Along with a return to trading, WANdisco has announced Stephen Kelly will be made the permanent chief executive following a two-month period as interim CEO.

Kelly, who previously served as CEO of software group Sage and chair of Tech Nation, was brought on to oversee an emergency capital raise to keep the company afloat amid the crisis.

The company eventually secured £24m in additional funding from existing investors.

“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.