Endava plc expects to restate fiscal 2026 results after an accounting review and has missed its annual-report deadline, warning that investors should not rely on figures for its first three quarters.
The company said its Audit Committee found problems in arrangements with counterparties that were both customers and suppliers. Endava said the agreements either lacked economic substance or had been negotiated and priced as a single arrangement. Endava said the associated revenue and balance-sheet items were not recorded in line with accounting standards.
The review affects the three months ended Sept. 30, 2025; the three- and six-month periods ended Dec. 31, 2025; and the three- and nine-month periods ended March 31, 2026. Endava’s unaudited preliminary estimate puts the revenue adjustment at approximately 2% to 4% of fiscal 2025 revenue. It expects the restatement to include non-cash changes to goodwill and intangible assets and to lower adjusted profit before taxes. The company cautioned that final figures could differ materially.
The counterparties involved accounted for about 1.5% of Endava’s customers as of March 31, 2026. The review also identified separate revenue-recognition errors. Endava does not expect to restate fiscal 2025 or earlier fiscal years, but said its previously issued fourth-quarter and full-year fiscal 2026 guidance should no longer be relied on.
Endava missed the Nov. 2, 2026, deadline for its fiscal 2026 annual report and filed a late-filing notice Nov. 3. The company said it could not yet reasonably estimate the restatement’s total effect on fiscal 2026 operating results. It preliminarily estimated cash and cash equivalents at about £55 million as of Sept. 30, 2026, and said it was assessing whether the restatement affected past compliance with its revolving credit facility while discussing the matter with lenders.
The company disclosed on Sept. 21, 2026, that its external auditors had raised accounting concerns. Endava placed CFO Mark Thurston on administrative leave effective Sept. 21; its board had appointed Conor McShane interim CFO on Sept. 18, also effective Sept. 21. Thurston resigned as CFO and a board member effective Oct. 25, 2026. General Counsel and Company Secretary Rohit Bhoothalingam resigned effective Oct. 26. Rob Machin became interim CEO effective Nov. 2, 2026. CEO John Cotterell plans to retire on Oct. 19, 2027, and remain on the board as founder and strategic adviser. Endava has not provided a new date for its annual report.
