The Board of Redcentric plc has commenced a forensic review of the Group's current and historic balance sheets which will delay publication of its interim results (originally scheduled for 14 November). The work to date has identified that audited accounts for previous years are likely to need to be restated, resulting in some write down in historic profits. Current indications are that all issues relate to prior periods.

The company provided net debt guidance as at September 30, 2016. The net debt guidance announced in the pre-close trading update is believed to be unreliable. The Board now believes net debt at the half year was approximately £30 million. The Board also believes that the underlying net debt position at 31 March 2016 was materially higher than as reported and thus the business has reduced its underlying net debt in the six months to 30 September 2016. New business sales and recognition of those sales into revenue over the six months ended 30 September 2016 have been in line with management's expectations.