MHA takes over as auditor for Revolution Beauty
This follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in sales by 2030.
Revolution Beauty has announced a change in its auditing structure.
BDO, the company’s auditor since 2019, has resigned by mutual agreement. This decision follows a tender process overseen by Revolution Beauty’s Audit Committee, which resulted in the recommendation of MHA as the new auditor.
The change is effective immediately, with MHA undertaking the Group audit for the financial year ending 28 February 2024.
BDO’s resignation comes without any circumstances that they believe should be brought to the attention of the Company’s members or creditors. This statement was confirmed in a company announcement by Revolution Beauty, indicating a smooth transition between the two auditing firms.
The Context Behind the Resignation
The resignation of BDO as Revolution Beauty’s auditor comes in the wake of intense scrutiny for the beauty business. The company had failed to publish its full-year results for the year ended 28 February 2022, prompting an investigation into its accounts by BDO.
The investigation revealed that co-founders Adam Minto and Tom Allsworth had made personal loans of around £1 million to distributors and a senior employee.
These arrangements were not disclosed to the company’s board at an appropriate time, raising serious concerns about the company’s financial transparency.
The investigation also uncovered issues with Revolution Beauty’s acquisition of pharmaceutical company Medichem. Following the investigation, both Minto and Allsworth resigned, with former interim COO Bob Holt and CFO Elizabeth Lake taking over management.
Despite these challenges, Revolution Beauty has expressed its commitment to achieving £1 billion in sales by 2030 as part of its new revival strategy, “Reigniting the Revolution.”
The Appointment of MHA as the New Auditor
With BDO’s resignation, MHA has stepped in to oversee Revolution Beauty’s audit for the financial year ending 28 February 2024. MHA’s appointment comes at a critical time for the beauty brand, which is working to regain its footing after a series of financial and legal challenges.
Revolution Beauty has expressed confidence in MHA’s ability to provide the necessary oversight and guidance during this period of transition.
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