Revolution Beauty Group (RBG) has flagged issues with its 2022 audit and launched an investigation using independent firms Macfarlanes and Forensic Risk Alliance . The process could, RBG says, take several months to complete. Share dealing in the business was suspended earlier this month.
RBG said that its auditor BDO had identified serious concerns that arose during its work on the 2022 audit and the validity of certain commercial arrangements RBG had entered into. 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.