For those who came in late the firm admitted to overstating assets and understating net debts. The outfit announced that it made multi-year number crunching errors that saw net assets exaggerated by £20.8 million and net debt closer to £42 million. The company had previously said that it only had £30 milion in debt.
The CFO quit after the revelation and Redcentric hired Deloitte and law firm Navarro to complete a “forensic review” of the finances. It changed its billing and credit control management systems, and the continued restructure of the accounting department.
Now it appears that the FCA has “commenced an investigation following the historic overstatement of net assets and profits” and Redcentric said it would “co-operate fully” with the investigation.
This is the second snuffing around the hindquarters by a watchdog that Redcentric has had to undergo. Its accountant PWC is being investigated by the Financial Reporting Council.