Reviewed: 4th November 2015
A company called Globo, whose services are based around mobile technologies and the provision of computer software platforms, has been entered into administration.
The UK-based business is listed on the Alternative Investment Market (Aim) but has recently been accused of misrepresenting its profits and revenues.
Suggestions that Globo might have been generating “fictitious” sales in the context of its official financial reports were highlighted in a report published in late October by the New York hedge fund Quintessential Asset Management.
The Financial Conduct Authority, the UK’s relevant regulator, is now investigating the matter but the company’s founder and chief executive Costis Papadimitrakopoulos has already resigned his post after flagging up the issue to his fellow corporate board members.
Administrators appointed to manage Globo’s affairs said in a statement: “Our focus is to undertake an immediate assessment of the group in order to evaluate any opportunities to realise value from the various businesses.
“We will also be looking to gain control of the books and records in order to be in a position to undertake a full investigation. These steps will be done in close consultation with the requisite regulatory bodies.”
Having been founded in the late 1990s, Globo was listed on London’s Aim stock market in 2007 as the result of a reverse takeover but its shares have been suspended from trading in recent weeks.
Among the company’s core products is that branded as Go! Enterprise, which offers a software package designed to help people use their personal mobile phones for professional purposes without compromising data security.
A company statement issued on October 23rd to the London Stock Exchange explained that Globo’s directors had been intending to investigate claims that its financial figures had been falsified with the help of an “appropriate independent forensic accounting team”.
However, at a board meeting convened to discuss the issue “Costis Papadimitrakopoulos the CEO of the Group brought to the attention of the Board certain matters regarding the falsification of data and the misrepresentation of the Company's financial situation, and offered his resignation, as did Dimitris Gryparis the CFO of the Group”. With 76 offices stretching from Inverness down to Exeter, Real Business Rescue can offer unparalleled director advice across the UK.