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Redstone bean counter is out the door
Needed a bean recount
Redstone Telecom has seen the back of its finance director, saying he had provided a potentially misleading representation of the company's cash reserves. The company needs more money than it had been letting on.
Alan Harrold was out the door yesterday after quick and dirty board meeting. "He felt he had to resign," said chief exec Graham Cove.
Redstone had issued a statement earlier in the week, which gave the impression the company was well cashed up to finance its expansion plans. Subsequently the company felt it had to make things a little clearer, and because Harrold had to clarify things, he had to go.
On Tuesday Redstone said it had £18.7 million of free cash at the end of March, but didn't make it clear that this figure included £3.4 million which was already earmarked for payments for last years acquisitions. Yesterday the free cash figure was down to £14.7 million at the end of April, including the £3.4 million.
Redstone has confirmed it's going to need more cash to finance its broadband expansion plans. ®