Redstone loses fourth FD in two months
Alan Harrold has become the fourth financial director in nine weeks to leave telecom company Redstone Telecom, following a decision to clarify a trading statement.
Redstone chief executive, Graham Cove, said: ‘I had a discussion with Mr Harrold and it was agreed that in the best interests of the company he would resign.
Andrew Walsh, operations and finance director of Fastnet, Redstone’s data subsidiary, has been appointed acting group finance director in his place, and joins the Redstone Board.
Harrold resigned following a board meeting on Wednesday, where the decision was taken to clarify a trading and financial update release from the previous day (Tuesday).
His departure, which was confirmed in a subsequent company statement released yesterday, led to an immediate collapse in the company’s share price, which fell 24% to 41.5p. Redstone shares was last trading at 44p each.
In its clarification statement, Redstone said it had Pounds 14.7m of cash reserves as of the 30 April, including Pounds 3.4m earmarked for acquisitions made during 2000.
The company said the Pounds 18.7m ‘free cash’ figure referred to in the statement of the 8 May was the book value of cash as of the 31 March, which again included the Pounds 3.4m deferred consideration payment.
Redstone, which is audited by mid-tier firm PKF, is considering the possibility of restructuring its business and is currently in discussion with its bankers National Westminster about extending its loan facilities, and giving them positive earnings before interest and tax deductions.
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