Troubled Finablr to miss reporting deadline

Finablr, the troubled foreign exchange and payments group, has announced a further delay to filing its annual accounts, admitting it will miss the deadline of publishing its financial statements by the end of this week

In its latest regulatory statement, Finablr has now reported: ‘The Company announced on 23 June 2020 that it had changed its accounting reference date to February 28, resulting in a deadline of 28 August 2020 to publish its financial statements.

‘The company is currently unable to adhere to this deadline and will provide an update on the anticipated publication date when it is able to do so.’

In March the FTSE 250 company revealed it could not accurately assess its financial position after discovering $100m (£81m) of undisclosed cheques.

At the time, Finablr said the cheques may have been used as security for financing arrangements for the benefit of third parties. They were written by group companies and date back before its initial public offering (IPO) in May 2019.

Auditor EY resigned, citing concerns over Finablr’s governance and demanding board changes.

Subsequently Finablr indicated it was at risk of insolvency, having identified a potential $1bn black hole in its accounts, and brought in Skadden, Arps, Slate, Meagher & Flom, a law firm, to investigate possible wrongdoing over claims that its losses were related to fraud.

This month saw Finablr’s founder and co-chair BR Shetty announce he was standing down with immediate effect. The company also revealed HMRC proposed to suspend business registrations for two of its services, although it subsequently said the issues had been resolved.

Further reading:

Finablr co-chair quits as HMRC suspends money service businesses

Finablr avoids HMRC business suspension

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