Revolut Has Failed To Meet The Yearly Accounts Deadline For Two Years In A Row

Revolut has secured permission to delay the release of its 2022 annual accounts. This will be the second consecutive year the UK fintech giant still needs to meet its account deadline.

The announcement on Tuesday is just the newest in a series of problems faced by the company this year. These challenges include revelations of multimillion-dollar losses to fraudsters in the United States, investors cutting valuations, and departures of senior executives.

Revolut was likely to announce its results by September’s end, nine months after its monetary year’s conclusion. However, Companies House granted Revolut an extension till the end of December, just like it received a similar extension for its 2021 results a year ago.

Revolut stated the company is delighted with its growth in financial services, higher user numbers and volumes, new services, and business development.

UK Private Businesses Can Appeal For A Deadline Extension In Case Of A Delay

In last year’s report, which could not meet the prolonged deadline and was published only in March, auditor BDO LLP highlighted a potential issue. It said the £477 million of its £636 million income may have been “materially misstated.” The company mentioned that its 2022 income had significantly increased to over £850mn.

According to the Companies House website, UK private companies can request an extension to their accounts-filing deadline in events where there is a delay due to situations beyond their control, such as record destruction in a fire.

Nevertheless, securing such extensions typically proves to be a straightforward process, as noted by accountants.

If Revolut decides to become a public company, it would be subject to shorter accounting deadlines. However, attaining this level has become more complicated due to delays in filing its financial reports and obtaining a UK banking license.

Revolut Lost More Than $20 Million To Fraudsters This Year

At the start of 2021, the firm initiated its application for a banking license. The company was valued at a remarkable $33 billion during its last funding, making it the most valuable private company in the United Kingdom.

Since then, the firm has faced a series of controversies, including the departure of crucial compliance personnel the previous year, including its UK banking chief executive and its chief financial officer earlier this year.

In July, The Financial Times reported that Revolut had lost over $20 million of its funds to organized criminals based in the US. The funds have gone before the firm could successfully identify and address a payment system loophole.

In May, the Chief Executive Officer at Revolut, Nik Storonsky, told FT that delays in obtaining the UK banking license resulted from the breakdown of Silicon Valley Bank.

A dispute with shareholder SoftBank over its firm’s ownership feature has also been blamed for the delay in obtaining the UK banking license.

Regarding the impact of the filing delay on Revolut’s two-year-old bid for a UK banking license, both the Prudential Regulation Authority and Financial Conduct Authority have declined to provide comment.