Darktrace PLC (LSE:DARK), the cyber security software specialist, has appointed accountant E&Y to review its financial controls and processes following a short-selling attack last month.
US hedge fund Quintessential Capital markets (QCM) made a string of allegations about Darktrace’s accounting, which were denied by the UK company in a rebuttal on 1 February.
In the statement today, Gordon Hurst, Darktrace’s chair, said the board fully believes in the robustness of Darktrace's financial processes and controls and has commissioned the independent review by E&Y as a demonstration of its confidence in its financial position and results.
E&Y will report to the chair of the Darktrace Audit & Risk Committee, Paul Harrison.
Half-year results for the six months ending 31 December 2022 are scheduled for 8 March 2023, but Darktrace said it does not expect to be in a position to provide an update on the review by then but will report the key findings when it is complete.
Guidance issued in January by Darktrace of half-year revenues of US$258mln, annual recurring sales of US$566mln and underlying profit margins of 18% or higher was reiterated in today’s statement.
Shares in the FTSE 250 group fell to a low of 210p after the QCM claims but have since recovered to around 250p.