Update: iSoft's June 8 announcement qualifies as an accounting funny - the scribe's position reverts to Mr Whiston must go.
Sanctuary plc is a mess; two previous posts cover this here and here.
As of today, the board sacked - belatedly - the CEO, Andy Taylor, who presided over this descent to near extinction (where the group unhappily still resides). They said this morning:
"The board's decision to remove Mr Taylor followed their conclusion that certain of the prior year adjustments made in the 2005 accounts should have been presented as a correction of fundamental errors and not as changes in accounting policy."An ironic termination for an accountant and one which calls to mind another CEO accountant - Mr Whiston, of iSoft plc. He too sits on an accounting mess which this scribe has written ought to end his term with the company.
In fairness, that opinion must be contrasted to Sanctuary's predicament:
* iSoft has added value, not the opposite, for most of its quoted life; and Mr Whiston has been either finance chief or CEO during that time;
* iSoft's financial situation is best characterised as illiquid, not near insolvent, and at least partly due to forces beyond the company's reach; and
* iSoft, in this investor's view, is quite significantly mispriced / undervalued and will negotiate a solution with lenders that returns it to cash flow happiness
On the assumption - hitherto rejected - that Mr Whiston is capable of rebuilding investor trust, well, everyone deserves a chance to put right their ship.
Provided there are no more accounting funnies to appear.
The writer owns iSoft plc equity.