Redcentric accounts saga takes new twist

New CFO takes hold permanently and MXC steps down as financial advisor

Redcentric has appointed a new, permanent chief financial officer as its investor MXC Capital has resigns as an advisor, representing the latest twists in its accounts saga.

At the start of this month, Redcentric announced a forensic review is being conducted into its accounts after it discovered some of its numbers had been misstated. It said it expected this to mean its historic profits would have to be written down, and announced its then-CFO Tim Coleman stepped down immediately.

Soon after, its investor MXC Capital described the accounts drama as every investor's "worst nightmare", but supported the company by acquiring a "meaningful equity stake" in Redcentric.

In filings to the London Stock Exchange yesterday afternoon and this morning, Redcentric provided a progress report.

Peter Brotherton, a "senior and experienced" industry veteran, will be appointed as CFO, company secretary and director of the board as of next Monday (28 November).

During his 25-year career Brotherton has served as CFO of app-developed Gametech and energy-measurement firm PKR Group. Just last week, Julian Llewellyn was appointed as interim CFO.

Redcentric chairman Chris Cole said Brotherton will be a "strong addition" who will "help us take the business forward".

In another twist, MXC Capital - the technology merchant bank - announced it has resigned as Redcentric's financial advisor. The duo have close links, and recently former Redcentric CEO Tony Weaver resigned as a non-exec director to take on more responsibility at MXC, which he co-founded.

In the announcement, MXC said it has "clearly demonstrated its continuing support for Redcentric" and added it holds 8,159,316 shares in the firm.