Wirecard shares sink, following the FT’s report that claims the company inflated sales

FILE PHOTO: The head office of Wirecard AG, which is an independent provider of outsourcing and white label solutions for electronic payment transactions, is shown in Aschheim near Munich, Germany, April 25, 2019 at the latest. REUTERS/Michael Dalder/File Photo

LONDON (Reuters) – Shares in Wirecard fell by more than 20% in early trading on Tuesday after the Financial Times newspaper published a document on the accounting policies, giving a decent blow-up of the turnover and the net profit, dealers said.

At 0806 GMT, the shares were down 15%, after touching their lowest point since the beginning of April the 24th, making it the biggest faller on the German DAX 30, on track for their worst day since the beginning of the end of February.

As a Wirecard spokesman, declined to comment on the report.

The newspaper said that the documents provided by the internal sheets and the related correspondence that took place between the senior members of the Wirecard finance team, which seem to indicate an attempt to inflate the revenue and earnings of the companies in Dubai and Ireland, but also, if necessary, to deceive the PEOPLE, to its tier-one firm.

The report comes after the paper published a series of stories earlier this year, alleging fraud and false accounting in Wirecard’s office in Singapore and a major Middle East group is not well-controlled.

The company has refused to accept the FOOT of the accusations against him, saying that, although the Dubai-based subsidiary company of Card-based Systems are not individually checked, the books have had to undergo at a higher level, a “full-scope” audit, by the accountants at ernst & young.

Reporting by Thyagaraju Adinarayan, Josephine Mason, and Thomas Seythal; Editing by Kirsten Donovan

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