Darktrace hires EY for independent review of finances

Darktrace hires EY for independent review of finances
Darktrace hires EY for independent review of finances

LONDON (Reuters) – British cyber safety firm Darktrace stated on Monday it had commissioned a third-party review of its finances by EY, weeks after a short-seller questioned its outcomes.

Darktrace stated the appointment of the auditor EY, previously generally known as Ernst & Younger, was an indication of its confidence in its monetary processes.

These had been criticised by New York-based Quintessential Capital Administration in a 70-page report on Jan. 31. The group stated it was “deeply skeptical in regards to the validity of Darktrace’s monetary statements,” prompting Darktrace to subject a rebuttal.

Darktrace’s chief govt Poppy Gustafsson stated then the corporate was run with “the best integrity”.

The corporate, which was listed in April 2021, is backed by Mike Lynch, the British tech entrepreneur who was dominated by a British decide to have masterminded an elaborate fraud when he bought his firm Autonomy in 2011. Lynch had denied the fees.

Lynch and his spouse stay traders, based on Refinitiv information, however he performs no half in operating it and isn’t on its board, Darktrace has stated.

Darktrace stated in its assertion on Monday that it was acceptable for a 3rd celebration review to substantiate the corporate’s monetary place.

“The board believes absolutely within the robustness of Darktrace’s monetary processes and controls. As an indication of that confidence, we’ve commissioned this independent third-party review by E&Y,” chairman Gordon Hurst stated.

Shares in Darktrace have risen 33% from a low of 198 pence on the day the essential report was printed. They closed at 263 pence on Friday, valuing the group at about 1.88 billion kilos ($2.26 billion).

($1 = 0.8302 kilos)

(Reporting by Sarah Younger, Modifying by Kylie MacLellan)

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