Crisis-hit firm’s share price crashes 70% in an hour

REDCENTRIC’S share price dropped 70% in its first hour of trading this morning following its admission that its net assets had been overstated by at least £10m.

The Harrogate-based company’s share price closed on 150p on Friday, but plummeted to 45p at 9am this morning, cutting its market capitalisation by more than £150m.

This morning Redcentric announced that after investigations, profits for previous years would need to be written down. It was unsure at this stage by how much and within the first 10 minutes of trading, shares had dropped 57%.

CFO Tim Coleman resigned yesterday after being placed on gardening leave following the discovery of the errors.

Update: Redcentric’s share price has improved slightly after it fell off a cliff this morning, down 60% to 59.7p.