Revolution Beauty to undergo investigation into auditing failures
Beauty brand Revolution Beauty Group (RBG) has said it will undergo an investigation into its failure to complete its auditing quickly enough, as it warns over its full-year profits.
Law firm Macfarlanes LLP and consultants Forensic Risk Alliance will begin an investigation into the business after its auditor, BDO, raised “serious concerns” over its inability to publish an audit report for the latest financial year.
The process could, RBG says, take several months to complete. Share dealing in the business was suspended earlier this month.
RBG warned that there was a possibility of accounting adjustments arising as a result of the 2022 audit which may impact on 2023 results whilst assuring investors and stakeholders will be fully updated as the investigation progresses.
Boohoo has a 7.1 per cent stake in RBG which sells around the world and has its beauty products stocked by some 15,000 stores. In a trading update for FY 2023 RBG said that its results will be materially below market expectations due to macro headwinds, consumer spending patterns, and cost inflation.
