(Alliance News) - Revolution Beauty Group PLC on Friday said an independent investigation being carried out by Forensic Risk Alliance and Macfarlanes has concluded, noting that some sales should not have been recognised in its previous financial year.

The probe found that a number of sales should not have been booked in the beauty products retailer's financial year ended February 28, 2022.

"These sales were only undertaken for the purposes of meeting sales targets for financial year 2022, and not all of the products ordered were required by the distributors at the time," the company said.

Revenue resulting from these orders were roughly GBP9 million. For financial year 2022, the company had reported a revenue of GBP194 million.

A probe also found that two board members in July 2021, former CEO Adam Minto and Executive Chair Tom Allworth, "made personal loans or other investments of approximately GBP1 million in aggregate to one of the distributors".

In September, the company's auditor BDO said it had a "number of serious concerns" regarding the audit for the 2022 financial year, concluding that it was not able to sign an audit report.

Revolution Beauty shares are currently suspended.

By Tom Budszus, Alliance News reporter

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