Datalex is suspending the trading of its shares from today on the Irish Stock Exchange, Euronext Dublin.
The travel technology company says it is completing a 2018 audit and transitioning to the "IFRS 15 accounting standard."
Datalex, which provides retail systems to travel companies, made a statement in late March that the process would not be completed by the end of April.
The company advised a “shortfall in anticipated services revenue and changes in the timing of recognition by the Datalex Group of certain other contracted revenue,” in a trading update in January.
At the time, the company also said group revenue, adjusted EBITDA and profit for the half year ending June 30, 2018, “may have been misstated.”
Datalex appointed PwC to carry out an independent review of the accounting issues following its own internal management review of records.
The statement in March says: "The Review focused on the Group’s recognition of services revenue during the year ended 31 December 2018, particularly with respect to the Group’s recognition of services revenue under a fixed fee contract for a significant customer deployment (the 'Deployment').”
Findings of the review and additional internal analysis by the board show that figures for the half year were misstated.
It also says that the IFRS 15 accounting standard was not appropriately applied for that period. The company says this was corrected and that the group’s 2018 guidance reflects this.
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What much of it seems to boil down to is the completion time of a fixed-fee contract for a large customer.
The March statement says this was “significantly underestimated, with estimates of time to completion significantly increased over the period.”
The review says about $2.9 million of revenue was incorrectly recognized for the first half of 2018.
It also blames “significant accounting irregularities” over the period for Datalex having overstated its revenue.
The company is now continuing to review its full-year 2018 results while it completes the change over to IFRS 15.
It plans to restate results for the first half of 2018 alongside its results for the first half of 2019 in the second half of this year.
Datalex has also asked PwC to follow up the review with a look at its “internal controls and processes.”
The company has already taken a number of steps to reorganize its finance function.
Trading of its shares will be suspended until it publishes its accounts, with no date set at this time for reinstatement.