British FinTech company Revolut has reportedly been granted permission to delay filing its 2022 accounts for the second consecutive year.
The filings were originally due on Sept. 13, but Revolut has received an extension, Reuters reported Tuesday (Sept. 19). The company will announce the audit and annual report at a later date.
Reached for comment by PYMNTS, a Revolut spokesperson provided an emailed statement: “We have received an extension for the filing of our 2022 accounts. We look forward to announcing our 2022 audit and annual report in due course. We continue to be pleased with the growth of the business, new products, higher user numbers and volumes, and increased financial metrics that result.”
This is the second consecutive year in which Revolut has been granted permission to delay its filing, according to the report. Revolut’s 2021 accounts were published in March 2023, revealing that the auditor, BDO, was unable to independently verify three-quarters of the company’s revenue, amounting to £636 million ($765 million).
The Financial Times reported at the time that BDO issued a qualified opinion on Revolut’s overdue 2021 accounts because the design of the FinTech’s IT systems meant that for up to two-thirds of revenue, the auditor was unable to provide sufficient appropriate assurance over how Subscription, Card Delivery and Foreign Exchange and Wealth revenue streams were allocated.
This raised concerns among regulators and caused further delays in Revolut’s plan to obtain a U.K. banking license, Tuesday’s Reuters report said.
It was reported in May that Revolut’s discussions with two British regulators — the Financial Conduct Authority and Prudential Regulation Authority — about a U.K. banking license had been stretched out for more than two years. That is much longer than the typical turnaround time for a license, which is under a year, the Financial Times reported.
Revolut had already replaced its internal accounting systems after the U.K. body that regulates auditors deemed the company’s 2020 audit as “inadequate” and highlighted high risk of an undetected material misstatement, per the Reuters report.
In addition to the delayed accounts, Revolut experienced a change in its executive team earlier this year, with Chief Financial Officer Mikko Salovaara leaving the company in May after two years in the role, according to the report.
Salovaara stepped down due to “personal reasons,” a Revolut spokesperson told PYMNTS at the time. In a statement provided by the company, Salovaara said: “I am grateful for the opportunity to serve as group CFO at Revolut and remain confident in the firm’s future success.”