After Wandisco PLC (AIM:WAND)’s self-proclaimed wasted year that was 2022, Stephen Kelly, chief executive of the scandal-rocked data business, promised that 2023 will be different.
Perhaps the second half will make good on that promise, but today’s interim earnings call painted a picture of a company grappling with mass layoffs, a Financial Conduct Authority probe into accounting irregularities, and a subsequent AIM trading suspension.
The first half of 2023 “was a traumatic time for shareholders and employees”, Kelly acknowledged. This fact was written into Wandisco’s financial performance.
Interim revenues halved year on year to $3 million, while bookings plummeted 62% to $2.8 million.
Wandisco penned a $14.8 million loss in underlying earnings compared to $14.1 million in the 2022 interim period, while statutory operating losses increased from $17.2 million to $18.8 million.
The group’s cash position is on thin ice, having fallen from $19.1 million at the end of 2022 to just $3.2 million as of June 30.
“As communicated with shareholders during the recent equity fundraise, the discovery of the Irregularities had a significant impact on prospective customers, strategic partners, the pipeline and the overall business,” Wandisco told shareholders today.
“Not only did the company suffer interruption to normal commercial activities, but a review of pipeline qualification was also a necessary step in the instigation of the turnaround plan to set a realistic baseline.”
As part of the turnaround plan, Wandisco will rebrand as Cirata plc, a name overwhelmingly voted in by shareholders.
“Cirata plc is not just a name change, it is a new beginning for the company, and will positively impact every aspect of our business,” said Kelly.
For now, Wandisco shares fell another 5.8% following today’s earnings call, bringing shares over 93% lower year to date.