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Marex has denied allegations of accounting lapses made in a short-seller report by NINGI Research, calling the claims "malicious" and "factually inaccurate". The report accused Marex of running a multi-year accounting scheme to mask losses and inflate profits. Marex's CEO, Ian Lowitt, addressed the claims on the company's Q2 earnings call, dismissing them as untrue and stating that all operations are consolidated under international financial reporting standards. Marex reported a 59% YoY increase in revenue, record agency and execution income, and continued integration of last year's TD Cowen prime brokerage takeover.

Marex Group plc (NASDAQ: MRX) has firmly rejected allegations of accounting lapses made by NINGI Research in a recent short-seller report, labeling the claims as "malicious" and "factually inaccurate" [1]. The London-based commodities and financial markets broker has been accused of running a multi-year accounting scheme to mask losses and inflate profits. However, Marex maintains that all operations are consolidated under international financial reporting standards and adheres to the highest standards of corporate governance [2].

The clash between Marex and NINGI Research escalated when CEO Ian Lowitt addressed the allegations directly on the company's Q2 earnings call. Lowitt, a former Lehman Brothers chief financial officer, dismissed the claims, stating that there are no off-balance-sheet entities at Marex and that all activity is consolidated in the company's public financials [1]. He also highlighted the audit committee's review of the claims, which was conducted by "very seasoned financial professionals" and resulted in the committee being "completely comfortable" with Marex's position [1].

Despite the allegations, Marex reported a strong Q2 performance. The company saw an 18% year-over-year increase in revenue to $500.1 million, beating analyst expectations of $470.53 million. Agency and execution revenues surged 59% to $260.8 million, with securities and energy segments contributing significantly to the growth [3]. The company also announced a quarterly dividend of $0.15 per share [3].

Marex continues to expand its operations through acquisitions. The company recently completed the acquisition of Winterflood Securities, a UK equities market maker, for £104 million. This acquisition strengthens Marex's UK cash equities operations and complements its existing prime brokerage business [3].

The company's stock price has been volatile in response to the short-seller report, but it has shown resilience, climbing 9.45% in pre-market trading on Wednesday after reporting Q2 results that exceeded analyst forecasts [3]. The stock has advanced 8.89% year-to-date and 71.98% over the past year, reflecting investor confidence in the company's financial health [2].

References:

[1] https://financefeeds.com/marex-slams-malicious-short-seller-report-denies-accounting-lapses/
[2] https://www.benzinga.com/markets/equities/25/08/47024126/activist-short-seller-ningi-says-marex-group-uses-off-balance-sheet-funds-to-inflate-results-calls-it-house-of-cards-built-on-fake-profits
[3] https://investorshub.advfn.com/market-news/article/14602/marex-group-jumps-9-after-q2-earnings-surpass-expectations