LONDON (Alliance News) - Redcentric PLC on Tuesday said it has hired an accountancy and a law firm to carry out independent investigations into the account misstatements the IT managed-services company disclosed last week.
Last week, Redcentric said a forensic review of its accounts, which will delay the publication of its results from the previously set date of Monday, has identified that audited accounts for previous years will likely have to be restated. The news sent its shares down 60% in a day.
On Tuesday, Redcentric said it has hired accountant Deloitte LLP and law firm Nabarro LLP to lead independent forensic investigations into the issue.
In addition, it said it has hired Julian Llewellyn as its interim chief financial officer. He replaces Tim Coleman, who Redcentric fired after the misstatements were found. Llewellyn has worked in the past for firms including construction group Balfour Beatty PLC.
"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," said Redcentric Chairman Chris Cole.
Redcentric shares were up 2.0% to 82.65 pence on Tuesday, though that's still down 56% in 2016 so far.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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