Skip to main content

Revolut defends its revenues.

 

Revolut logo
Revolut has said its 2021 revenues are «not in question» despite concerns from external auditors about the «completeness and occurrence» of close to £500 million worth of turnover. The company, one of Britain’s most valuable start-ups, alleged that its annual accounts had been «misreported» in articles which said auditors from BDO had been unable to verify about three-quarters of its 2021 sales. Revolut claimed that «some of the reporting on Wednesday incorrectly reported BDO’s audit opinion». It alleged that BDO was saying it could not confirm precisely which revenue stream funds were coming from rather than casting doubt on the volume of revenue reported.

 Revolut said it stood by the comments, which have put BDO in a difficult position. Revolut was founded in the UK in 2015, offering transfers and foreign exchange services as it sought to outpace and undercut the large incumbent banks. The delays came after the quality of the 2020 audit by BDO came under review by the Financial Reporting Council, the regulator. The problems highlighted by BDO related to issues with Revolut’s IT system which are understood to have created difficulties with reconciliation. This accounting process compares two sets of records to ensure the figures are correct and in agreement.

A payments industry veteran, who asked not to be named, said reconciliation is a «fundamental requirement of any financial platform» and that the audit qualification had raised new questions about Revolut’s efforts to secure a UK banking licence, which would allow it to expand its range of services for customers in Britain. «How can the company not know its subscription revenue?» he wrote on Twitter. Mikko Salovaara, the group chief financial officer of Revolut, said this week that the issues were down to «an IT system that wasn’t scaled» to meet the company’s rapid growth. The company indicated the problems were resolved in mid-2021, and Salovaara has said he did not expect it to be a «recurring issue».

www.sba.tax

Labels:

Comments

  1. Edgar5 March 2023 at 11:18

    So many companies grow way too fast and their IT systems can't seem to keep up. Let's hope this is the case here and we are not dealing with something else entirely.

    ReplyDelete
    Replies
    1. Josh5 March 2023 at 14:18

      I always wonder why such companies don't just get an outside team to fix their IT system and improve it as they go. I mean, just invest in this because it's one of (if not the most) important aspects of such a business. You can't afford to have problems here.

      Delete

Post a Comment

Cloud Bookkeeping

US FED rate rise.

  The US Federal Reserve officials have indicated that they plan to resume increasing interest rates to control inflation in the world's biggest economy. During the June meeting, the Federal Open Market Committee reached a consensus to keep interest rates stable for the time being to evaluate whether further tightening of policy would be necessary. However, the majority of the committee anticipates that additional rate increases will be required in the future. The minutes of the meeting have recently been made public. According to the minutes, most participants believed maintaining the federal funds rate at 5 to 5.25 per cent was appropriate or acceptable, despite some individuals wanting to raise the acceleration due to slow progress in cooling inflation. Although Fed forecasts predicted a mild recession starting later in the year, policymakers faced challenges in interpreting data that showed a tight job market and only slight improvements in inflation. Additionally, officials gr...
Post a Comment
Read more

EU business slide.

  S&P Global’s flash eurozone composite purchasing managers’ index, a key gauge of business conditions for the manufacturing and services sector, fell 1 point to 47.1, figures showed yesterday. That is its lowest level since November 2020 and the fourth consecutive month below the crucial 50 mark separating growth from contraction. One of the few bright spots in the survey was that companies in all sectors reported a slight easing of cost pressures, price growth and supply chain constraints. However, prices charged for goods and services still rose at the sixth fastest rate since such data started in 2002. Jobs growth increased marginally from October but remained low compared with the past 18 months. Following a few months of falling price pressure in manufacturing and services, the October print shows an overall stabilisation said Jens Eisenschmidt, chief European economist at Morgan Stanley. However, German businesses, at the hub of Europe’s energy crisis, reported that manu...
1 comment
Read more

India- UK trade deal.

  According to India's top trade official, talks with the UK regarding a trade agreement are progressing well, despite obstacles related to temporary work visas and the opening up industries like automotive and spirits. The Commerce and Industry Minister, Piyush Goyal, explained that India is seeking transition periods or greater market access in specific sectors due to its economy, which is slightly larger than the UK's and expected to outgrow it in the coming decades. If a trade deal is reached, it would be one of the most significant agreements for Britain since leaving the EU, and it would also be necessary for India, which surpassed the UK as the fifth-largest economy last year. Goyal stated that India aims to increase its economy from $3.5tn to $35tn by 2047, the country's centenary of independence. According to officials and diplomats in India, talks about a proposed trade deal may be finished by early September, just in time for the G20 summit in New Delhi. Nigel Hu...
Post a Comment
Read more