Net indebtedness had risen from pounds 7.6m at the end of March to pounds 11.2m at the end of June as a result of a dollars 2.5m ( pounds 1.7m) investment in March in Arius, a US distributor, and expansion at Alarmexpress, a UK distribution subsidiary acquired last October, it said. A month ago Scantronic reported that trading conditions had been difficult in April and May, leading to higher- than-expected stock levels.
The company said: 'Owing to weaknesses in our finance functions, the full cash-flow implications of these matters were not properly appreciated for some time. In the light of the above, Ray Dias is resigning as finance director.'
Scantronic reported a significant improvement in trading conditions in June and July and has appointed John Singer, a consultant to the group, as acting finance director.Reuse content