Technology company Darktrace (LON: DARK) is the highest riser on the Main Market after a review of its accounts by EY. Management says that the results do not have any impact on previously filed accounts. The share price has risen 19% to 349.75p.
Darktrace joined the premium list on 4 May 2021, when it raised £143.4m at 250p/share. Cambridge-based Darktrace provides artificial intelligence (AI)-based cybersecurity services, and it was formed in 2013. The AI technology can detect and stop cyber attacks.
There were allegations about the figures of Darktrace and EY was allowed to all information and relevant people. The review was launched in February, and it covered partner channel contracts and marketing spend, appliance deployments and the process for calculating non-current deferred revenues. EY also reviewed the calculation of annual recurring revenues.
EY did uncover errors and inconsistencies in channel processes and controls. The Financial Conduct Authority and Financial Reporting Council have received copies of the review.
In the year to June 2023, revenues increased 31% to $544.3m. There was a 29% rise in annual recurring revenues. Revenues are expected to grow by between 22% and 23.5%.
The share price is 35% ahead this year, despite the allegations earlier in the year.