One of the UK’s leading air conditioning installers has been forced to pull out of the AIM index, as the fallout from a revenue recognition scandal continues.

Earlier this year, Worthington Nicholls was forced to ring in the changes as a result of its woes ­ a move that eventually claimed the scalps of FD Tim Hunt and chief executive Mark Worthington.

In September, Worthington Nicholls’ audit committee hired KPMG to undertake a review of its accounting practices, advising shareholders in October that it would face an asset write-down of £6.5m.

Worthington Nicholls said previously: ‘The majority of this amount relates to accounting calculations that had the effect of advancing the recognition of income. These accounting practices have now ceased, which should provide management and shareholders with greater clarity as regards the financial performance of the company in the future.’

Despite the company’s optimism, the troubled builder has now had to cease the trading of its shares on the alternative investment market.

After only being appointed in January, Hunt was edged out on 19 September when the board decided his focus should be on the ‘financial operational aspects’ of the business as head of finance. Chris Neilson took over as stopgap FD and was tasked with overseeing a financial review by KPMG.

On 24 October 2007, the board announced it had received a notice from an activist group of shareholders demanding that the board be strengthened.

At the end of November, interim FD Christopher Neilson was replaced by Thomas Good, and chartered accountant Simon Beart was named chief executive.

The company has indicated that it will make a further announcement on the issues later this week.