Revolution Beauty has called in the investigators after auditors continue to flag “serious concerns”.
The auditor BDO has recommended that the beauty firm appoint independent external advisers to carry out an independent investigation, adding to the initial announcements made last month surrounding “certain accounting issues”.
Revolution said this morning that it has hired City law firm Macfarlanes LLP and Forensic Risk Alliance to kick off the probe.
“At this point it is difficult to estimate a timeline for the investigation, however, the Board considers that it may take several months to complete. Announcements will be made as appropriate,” the UK brand said.
Derek Zissman, Non-executive Director and Head of the Investigations Committee, said: “We are taking BDO’s concerns very seriously and will conduct a full and independent investigation. We will continue to keep investors and stakeholders fully updated as the process continues.”
The news crucially means that the company is unable to sign off its already delayed full year accounts and trading continues to be halted.
While the beauty brand could not post an audited set of results, it did state that it had entered the “seasonally stronger second half of the financial year”.
Despite this, Revolution now expects that its results for FY23 will be materially below market expectations and the previous guidance given, as a result of macro headwinds and inflation.