FCA censured Redcentric over misstated net debt and cash in 2015 and 2016 results
Redcentric PLC · AIM-listed IT managed services
The case in brief
Visible before detection
Checks that could have surfaced it, on hindsight
Bank credits vs books
Reconciling bank balances to reported cash would show negative cash balances instead of positive ones.
Can mislead when: AA only sees the accounts the company links, so an undisclosed account stays invisible. Cash-heavy businesses and timing differences create false flags.
Third-party confirmation
Direct bank confirmations of borrowings and cash would contradict the published figures.
Can mislead when: Counterparties can collude or ignore requests. A non-response is logged as a gap, never as a pass.
Books edit log
Adjusting entries to cash and debt balances would appear in the books edit log.
Can mislead when: Logs can be disabled at database level (auditors qualified this in year one) or tampered with on export. Kubr needs the company to cooperate.
Regulatory & litigation records
The FCA and company announcements record the misstatement once disclosed.
Can mislead when: Court records lag and name spellings vary. A clean record can mean the problem has not reached court yet.
Where Kubr services would have helped
Financial diligence
Offered in India- C1 Reconciling bank balances to reported cash would show negative cash balances instead of positive ones.
- C12 Adjusting entries to cash and debt balances would appear in the books edit log.
Portfolio monitor
Offered in India- C1 Reconciling bank balances to reported cash would show negative cash balances instead of positive ones.
- C8 The FCA and company announcements record the misstatement once disclosed.
Borrower monitor
Offered in India- C1 Reconciling bank balances to reported cash would show negative cash balances instead of positive ones.
- C8 The FCA and company announcements record the misstatement once disclosed.
Verified Snapshot
Offered in India- C8 The FCA and company announcements record the misstatement once disclosed.
Mapped from the checks each service runs. A hindsight reading of public records, not a promise that the failure would have been found.
Same pattern
A summary of public documents. It reports what the sources say. It is not Kubr's finding and not a statement of guilt.