Tanfield plc, formerly the biggest company on the AIM exchange is making a last ditch bid to help reverse its fortunes by calling in the accountants after a turbulent period which saw its share price nosedive by more than 80% last week.
Sources say that the electric vehicle maker is looking for an adviser to work out whether the business can continue as a going concern.
Investors have strongly criticised Tanfield, levelling accusations of incompetence and malpractice at the top brass, the Sunday Telegraph reported.
Analysts also called the financial stability of the company into question. Mike Stoddart, of Daniel Stewart Securities, said: 'When we met the company on 2 June, the guidance from the finance director was that cash at the end of June would be £18m. Now they are saying it was £11m. This is a major problem.'
Tanfield's management has put its problems down to a slump in the powered access market in talks with investors and is nowlooking for a clean bill of health.
You may also like
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources.