A MAKE-UP brand loved by Love Island stars has been found to be fiddling the books.
A probe says Revolution Beauty founders gave loans to distributors in return for bumping up orders.
Founders Adam Minto and Tom Allsworth made fortunes when they listed the firm for £500million in 2021[/caption]
Around £9million of sales should not have been counted, said the report.
Founders Adam Minto and Tom Allsworth made fortunes when they listed the firm for £500million in 2021.
But they did not tell the rest of the board about the secret deals which gave the impression that Revolution’s business was bigger than it is.
Auditors had refused to sign off the accounts, which prompted a months-long probe.
Investigators highlighted “materially larger than normal” orders sent to distributors just before the year-end with the purpose of meeting sales targets.
The sweetheart deals with those distributors included Revolution not having to pay for them until this year.
Insiders said the firm — which has tie-ins with Love Island and Amanda Holden — is now stuffed with too much stock.
Investigators are also checking the value of Allsworth’s Medichem lab, sold to Revolution for £26million before the flotation.
Medichem also sold products from third parties to Revolution for a profit.
Self-styled God of Lipsticks Minto has resigned while Allsworth is to step down.