Deloitte is to carry out a forensic review of accounting activity at Redcentric, the IT managed services provider which announced earlier this month it had discovered ‘accounting misstatements’ which would require it to reduce net assets by at least £10m
In a statement to the stock exchange, the board said it has appointed both Deloitte and law firm Nabarro to carry out independent forensic investigations.
The two firms will work alongside the company’s own internal review, after its audit committee uncovered problems in relation to the interim results for the six months to 30 September 2016. Publication of these, due out on 14 November, have been delayed.
Redcentric has also appointed Julian Llewellyn as interim chief financial officer (CFO), after postholder Tim Coleman resigned with immediate effect in the wake of the accounting errors. The company described Llewellyn as ‘very experienced’, holding senior roles at companies such as Exertis, Balfour Beatty and Greenergy over the past 25 years.
The company said its search for a permanent CFO ‘is progressing well’ with an announcement expected in due course.
Chris Cole, chairman of Redcentric, said: ‘The past few days have obviously been challenging and difficult for everyone involved with Redcentric. Our priority now is to complete this review and report the findings to all our stakeholders together with our interim results.’
