Darktrace Embraces a New Chapter Following Business Practice Probe
Relief: Darktrace boss Poppy Gustafsson
Darktrace, a leading cybersecurity firm, is poised to unveil its annual results, marking a fresh start after a prolonged dispute over its accounts and business practices.
Industry analysts anticipate that the company, listed on the FTSE 250, witnessed a nearly 30% increase in sales to £438 million in the year leading up to June. However, profits are predicted to have declined to approximately £548,000 from £1.2 million the previous year, primarily due to rising costs.
The expected surge in sales comes as a relief for Darktrace and its CEO, Poppy Gustafsson, following months of adversity. The company faced scrutiny after short-seller Quintessential Research published a report in January questioning Darktrace’s financials, alleging inflated sales and profit figures. The report further suggested that Darktrace might have engaged in fraudulent practices.
The ensuing feud between Darktrace and Quintessential Research’s CEO, Gabriel Grego, triggered a five-month audit of Darktrace’s accounts by the auditing firm EY, concluding in July. While a few accounting errors were identified during the review, no evidence of fraud was found, resulting in a significant boost to Darktrace’s share price.
Despite the EY review, Quintessential Research remains unsatisfied and has called for the full report to be made public. It is unclear whether Quintessential Research will continue its campaign against Darktrace.
Darktrace’s association with British technology tycoon Mike Lynch, who is facing fraud charges in the US, has also posed legal challenges. Lynch was one of Darktrace’s original backers. However, Darktrace remains resilient and has received support from Matt Moulding, head of ecommerce firm THG, who defended the company against
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
