Forensic investigation launched into Redcentric accounting errors

BELEAGUERED IT services company Redcentric has announced that Deloitte and Nabarro have been signed on to complete a forensic review following the discovery of accounting misstatements.

Redcentric announced last week that its CFO Tim Coleman had quit amidst accounting issues that saw the company’s assets overstated by “at least £10m”.

Deloitte and Nabarro will carry out independent forensic investigations into the firm’s accounts.

Redcentric has also appointed Julian Llewellyn as interim chief financial officer. The Manchester-based experienced finance officer has held roles at Exertis, Balfour Beatty and Greenergy.

The company said that the search for a permanent SFO to join the board is “progressing well”.

Chris Cole, chairman of Redcentric, commented: “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.”