Shares in German payment service provider Wirecard AG have tumbled today after the company announced that it was postponing its annual report once again.
The Munich-based company said that auditor EY couldn’t find the cash balances — which make up approximately a quarter of its balance sheet. As a result, Wirecard’s share price tumbled more than 60%.
“The Wirecard management board is working intensively together with the auditor towards a clarification of the situation,” the firm said in a statement released on Thursday morning. It added that the issues with getting the accounts signed off by EY could result in loans of around 2 billion euros being called in early.
Once seen as a leader of Germany’s tech industry, Wirecard has been rocked by multiple allegations of financial irregularities over the past few years. The company has hit back by claiming that its share price was being intentionally manipulated by speculators.
The Financial Times was the first to level accusations against Wirecard, following an investigation into their accounting practices. The publication alleges that Wirecards Singapore office artificially inflated revenue using forged and backdated contracts.
A further FT exclusive in October claimed that Wirecard’s staff conspired to inflate sales and profits at subsidiaries in Dubai and Dublin and mislead EY.
It was “currently unclear whether fraudulent transactions to the detriment of Wirecard AG have occurred.” said chief executive Markus Braun.