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AI technology group DeepVerge has revealed its FY22 revenues are set to be “far below” figures that were previously provided, after a fresh review of its finances was undertaken following a board change and the appointment of a new CFO.
In January, the group had announced that it expected unaudited FY revenues to be approximately £17.2m.
However, following the appointment of new CFO Andrew Waters in February, the new management team undertook a “comprehensive” review of its major contracts, and now expects FY22 revenues under IFRS15 to be only 45-50% of the £17.2m.
The group said that whilst further analysis continues, “based on the current available information and analysis to date, it is clear that revenues for a number of contracts have been incorrectly recognised in excess of works completed and revenue figure provided by the previous executive management team and notified to the market”.
It added the majority of revenue shortfall in 2022 is expected to be recognised in 2023, although “some is unlikely to be realised”.
DeepVerge appointed Haysmacintyre as its new auditor in March following the resignation of Jeffreys Henry.
Jeffreys Henry confirmed in its release letter at the time that there were “no circumstances which they considered should be brought to the notice of the members or the creditors of the company”.
Chairman Ross Andrews said: “Whilst it is extremely disappointing that 2022 revenues are likely to be so far below the figures provided by the previous executive management team, I’m confident that the new management has robust plans in place to deliver the order book during 2023 and 2024.”
