CEO, finance director's resignations are announced after delayed publication of interim results

Erinaceous has announced a management restructure after revealing pre-tax losses of £3.9m for the six months to June 30.

The struggling property consultant said Neil Bellis was stepping down as chief executive officer and Michael Parsons would resign as finance director after publishing its delayed interim results.

Neil Bellis
Outgoing CEO of Erinaceous Neil Bellis

The news comes as the group’s profits plunged from £12m last year to a £3.9m pre-tax loss. Revenues rose from £108.9m to £116.5m.

Erinaceous said property transactions would be the only division to meet market expectations for the year, bringing financials in line with expectations.

Chairman Nigel Turnbull said: “This has been a demanding half year with management focused on evaluating the various approaches made by potential bidders and property transactions rather than running the business. The management changes address this issue.”

The group also said it had obtained a waiver for breaching its banking covenants, a transgression it admitted to earlier this week.

Erinaceous is thought to owe more than £180m to HBOS, Lloyds TSB and HSBC following the acquisition of more than half a dozen companies over three years.