Revolution Beauty auditor BDO resigns after four years

By Alessandro Carrara | Published: 20-Feb-2024

BDO had overseen an investigation into the beauty business' accounts after it failed to publish its full-year results in 2022

Revolution Beauty has appointed accountancy firm MHA as its new auditor.

It comes after BDO, which had been the company's auditor since 2019, resigned by “mutual agreement”.

MHA will now oversee the embattled beauty brand’s audit for the financial year ending 28 February 2024.

“BDO have confirmed that there are no circumstances connected with their resignation which they consider should be brought to the attention of the Company's members or creditors,” Revolution Beauty said in a statement.

BDO had overseen an investigation into Revolution Beauty’s accounts, after the beauty business failed to publish its final results for the year ended 28 February 2022.

Its report found that co-founders Adam Minto and Tom Allsworth had made personal loans of around £1m to distributors and a senior employee.

The accountancy firm said at the time that none of these arrangements were disclosed to the company's board at an appropriate time.

BDO’s investigation also found serious issues with Revolution Beauty’s acquisition of pharmaceutical company Medichem.

Minto and Allsworth both resigned shortly after the investigation began, with former Interim Chief Operating Officer Bob Holt and CFO Elizabeth Lake taking over management.

Lauren Brindley was later appointed as Group CEO in September 2023, after Holt resigned from the position following a settlement agreement with Boohoo.

Despite years of legal headaches and financial woes, Revolution Beauty said it plans to hit £1bn in sales by 2030 as part of its new revival strategy. 

Dubbed ‘Reigniting the Revolution’, the company aims to get the business back on track.

The fast beauty retailer added that it will focus on three core pillars to deliver “long term profitable growth”, with the aim of becoming a top five mass beauty player globally.

Revolution beauty also recently reached a settlement agreement with co-founder Minto.

Minto agreed to the settlement sum of £2.9m, which will be paid in six annual instalments of £483,333.

The brand’s board of directors said at the time that the move was a “fair settlement for the company”. 


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