US prosecutors have brought charges of fraud against Mr. Lynch, the former owner of Autonomy, a software company. In their pursuit of evidence, they have also involved Darktrace, seeking emails from executives who were at Autonomy during the time of the alleged fraud.
In a recent trading update, Darktrace announced that they expect their annual revenues to increase by 42% to 44%, surpassing their previous forecast of 37% to 39%. Additionally, their profitability, as measured by the ebitda margin, is expected to be higher than initially projected.
Darktrace, a company listed on the FTSE 250, anticipates half-year revenues of at least $190m (£140m), reflecting a growth of at least 50%. This increase in sales can be partly attributed to the recent weakening of the dollar.
As a result of this update, Peel Hunt, a broker who had previously issued a negative analyst note that triggered a decline in Darktrace’s share price, has upgraded their recommendation. They now advise clients to “hold” Darktrace shares, as the share price has approached their target price. Peel Hunt had previously expressed skepticism about Darktrace’s marketing claims.
Regarding the recent developments, analysts at Berenberg stated that Darktrace shares have been entangled in misinformation. They believe that the trading update will help dispel the doubts surrounding the company.
Mr. Lynch, who holds a 17.5% stake in Darktrace with his wife Angela Bacares, is currently fighting extradition to the US to face fraud charges related to the sale of Autonomy to HP for £7bn in 2011. His legal team argues that any criminal charges against him should be dealt with in the UK.
Darktrace has previously cautioned investors that the allegations against Mr. Lynch could pose a risk to the company.
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