(Reuters) – An independent investigation into Revolution Beauty Group’s accounts found several concerns, including over certain historical sales, inventory provisioning methods and personal loans made by a former CEO, the company said on Friday.
The British company’s former chief executive officer Adam Minto had stepped down from the post in November amid the accounting probe.
Revolution Beauty’s auditor also said it found personal loans made by Minto and Tom Allsworth – founder of Medichem – to an employee and some distributors.
The investigation also flagged loans and other investments of about 1 million pounds to one of its distributors, adding that none of these loans had been disclosed and it “required investigation”.
Minto and Allsworth could not immediately be reached for comment.
Shares of the London-listed company were suspended from trading in September, after it failed to publish its annual accounts.
The company said it expected adjustments to its full-year 2022 results, specifically relating to inventory provisioning and revenue.
($1 = 0.8193 pounds)
(Reporting by Anchal Rana and Chandini Monnappa in Bengaluru; Editing by Savio D’Souza and Rashmi Aich)
