Revolution Beauty Group plc distributes beauty and personal care products in the UK and listed on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) in July 2021. In August 2022, it announced a delay in the publication of its annual results, the shares were suspended and auditor BDO flagged serious concerns identified during its audit. In January 2023, an independent investigation revealed a series of accounting issues which included possibly inflated consideration for a company acquired from Revolution’s chairman, channel stuffing just before the February year end in order to inflate revenues, incorrectly estimated supplier rebates, and inadequate inventory provisions. The former CEO and co-founder agreed to pay a settlement in connection with these accounting issues with no admission or acceptance of liability. Despite the latter, Revolution’s shares are down 84% since its IPO and this appears to be a confirmed fraud primarily caused by channel stuffing in order to meet sales targets.

The information on this page has been compiled from publicly available sources. GMT Research Limited has not verified the information and does not warrant its accuracy. Any claims made or views expressed are not necessarily those of GMT Research Limited.