Revolution Beauty former boss agrees to pay firm £2.9m to end auditing dispute
The co-founder and ex-boss of cosmetics brand Revolution Beauty, Adam Minto, has paid nearly £3 million in order to settle an auditing dispute.
The make up firm ran into trouble when its account auditors refused to sign off on its financial reports for the year ending February 2022 which led to shares in the company being suspended on the London Stock Exchange while a detailed look into the matter was carried out. After these problems surfaced, former chief executive Mr Minto decided to leave his role at the company in November.
It later emergerd there were a series of problems with its accounts, including the sale of almost £10 million worth of products just before the financial year ended; an investigation showed these sales should have not been taken into account in the reported revenue.
The investigation also found claims that Mr Minto, alongside ex-chairman and co-founder Tom Allsworth, had secretly given personal loans to one employee and distributors without letting the board know at the time. Revolution mulled over taking Mr Minto to court, accusing him of failing to do right by the company.
However, the announcement of the settlement on Thursday will likely end this dispute, with the company highlighting that there was "no admission or acceptance of liability by either party" in the agreement. Mr Minto has agreed to pay £2.9 million in six yearly instalments, with an 8% interest charge per year if he misses a payment.
Women who worked on London Stock Exchange's trading floor to receive awards
Non-executive chairman, Alistair McGeorge, expressed his satisfaction with the agreement, stating: "We are very pleased to have reached an agreement with Adam," and added that the company can "now focus on the future".
* An AI tool was used to add an extra layer to the editing process for this story. You can report any errors to [email protected]
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