For the second consecutive year, UK fintech giant Revolut has been granted an extension to publish its annual financial results. This delay comes amidst anticipation surrounding the company’s UK banking license decision. The firm, which was supposed to release its results by the end of September, has now been given until December by the UK Companies House. This mirrors the delay experienced last year when the 2021 results were only disclosed in March 2023.
This year has been tumultuous for Revolut, with senior executive exits, valuation cuts by investors, and revelations of significant losses in the US due to fraud. The company’s previous annual report, released in March, raised concerns when auditor BDO highlighted potential discrepancies. They indicated that a significant portion (£477mn) of its £636mn revenue might have been inaccurately reported. Despite this, Revolut announced that its 2022 revenues had surged to over £850mn.
Companies House allows UK private companies to seek extensions for their account filings due to unforeseen circumstances. However, accountants note that obtaining such extensions is typically a straightforward process. If Revolut were to go public, it would face stricter reporting deadlines. This ambition is currently hindered by delays in both obtaining a UK banking license and account filing.
Revolut‘s journey to secure a banking license has been fraught with challenges. Initiating its application in early 2021, the company was valued at a staggering $33bn later that year. However, controversies have since plagued the firm, including the exit of crucial compliance staff and top executives in 2022.
Despite its valuation and achieving profitability in 2021, Revolut‘s financial transparency has been under scrutiny. The latest report suggests a projected revenue of $1.05 billion for 2022, a 30% increase from the previous year. Yet, auditors BDO LLP expressed concerns over verifying a significant portion of this revenue.
While Revolut‘s banking license in the UK remains uncertain, it holds a license in Lithuania for European operations. The company has also sought licenses in Australia and the US, indicating global ambitions. As the fintech landscape evolves, Revolut‘s next moves will be keenly observed by both industry experts and competitors.
