Redcentric reveals restated accounts amid numbers drama

Restated figures for the year ending 31 March 2016 released

Redcentric has announced its numbers - revealing that last year it actually made a statutory loss after tax of £5.2m last year, rather than a profit of £5.2m - in the latest twist in its accounts saga.

Last month, Redcentric called in Deloitte and Nabarro to lead an independent forensic review into its accounts after it realised its numbers were wrong.

It had previously announced that the total amount by which net assets and reported profits after tax to 31 March 2016 have been restated is £14.9m, but today went further and released more numbers.

It said £6.5m of that related to the six-month period to 31 March 2016; £3.9m of it relates to the six months prior, ending 30 September 2015; and the rest - £4.5m - related to the year ended 31 March 2015 and earlier.

For the 12 months ending 31 March, revenue was restated to £103.3m, a £6.2m reduction on the initial £109.5m it reported. Over the same period, Redcentric restated that it made a statutory loss after tax of £5.2m for that year, compared with an initially reported profit of £5.2m - a reduction of £10.4m.

Chris Cole, Redcentric's chairman, said: "It has clearly been a very difficult period for he Company. A great deal of work has been carried out - supported by our independent external advisors - to complete and consider the conclusions of the forensic review, establish a remedial plan of action and report these interim results.

"While there is obviously more work to be done, we have made some important steps forward with the appointment of a strong and experienced chief financial officer who is leading the ongoing strengthening of our internal processes. With the welcomed support of our banks, clients and colleagues, we are focused on taking a more robust business forward."

For the six months to 30 September 2016, Redcentric's revenue was up two per cent on the last six months to £53m and the firm said its sales pipeline is "strong". Over the same period, it made a statutory profit before tax of £300,000, compared with a restated loss of £2.5m.