Healthcare Locums CFO resigns

THE CFO of medical recruitment company Healthcare Locums (HCL) has resigned following an investigation into accounting irregularities.

Diane Jarvis and vice-chairman Kate Bleasdale were suspended in January this year while the business examined the books.

A statement from HCL said: "Ms Jarvis' resignation follows an investigation by the company into financial irregularities that occurred during her tenure as chief financial officer and for which she has accepted responsibility."

Bleasdale was dismissed after the company uncovered errors including the auditors of a business bought by HCL refusing to sign off accounts.

HCL bought the business and assets of Redwood Health for £6.7m from John Cariss, husband of Bleasdale, in August last year.

Redwood Health's auditors, Haines Watts, refused to sign off on the sold company's accounts.

Haines Watts cited a failure by Redwood to produce proper documentation relating to four months in 2009. Redwood Health lacked information regarding payroll and sales figures during this period. The auditors also claimed Redwood Health failed to account for £351,000, debited from its profit and loss account.

Haines Watts said problems with the accounts meant it was "unable to form an opinion as to whether the financial statements give a true and fair view of the state of the company's affairs".

For more market data go to our Share Price Centre.