Technology

Travel software firm Datalex appoints Deloitte as auditor

Company also announces exit of Roger Conan and Garry Lyons as independent directors

Last month, Datalex reported that its net loss for the first half of 2019 narrowed to $6.9m.

Wed Jan 1 2020 - 16:50

Datalex, the travel software company caught in controversy over accounting irregularities, has appointed Deloitte as its new auditor.

The company also announced that Roger Conan and Garry Lyons resigned as independent directors on December 31st to ensure Datalex avoided breaking stock exchange rules on board composition.

Accountants Deloitte Ireland became Datalex's new auditors with "immediate effect" on new year's eve, according to a statement from the company. Ernst & Young, now called EY, resigned as auditors last year.

Mr Conan and Mr Lyons resigned as three of Datalex's seven board members were co-opted. This would have left the company in breach of a stock exchange rule demanding that listed companies ensure that no more than one-third of the board is co-opted.

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Datalex ran into trouble last year when a report commissioned by the board found that it had booked prematurely revenue from a project for German airline Lufthansa while the work itself had gone over budget and missed deadlines.

Datalex has since taken action in the German courts to prevent Lufthansa from terminating the contract.

The company restated accounts to show that it lost $33.1 million (€29.5 million) in the first half of 2018. It had originally reported a $2 million profit for the period.

Last month, Datalex reported that its net loss for the first half of 2019 narrowed to $6.9 million.

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