NE Scotland, Orkney & Shetland

Marine safety firm's review uncovers £4m shortfall

A marine safety firm has found a £4m shortfall during an internal review, triggering a fall in its shares.

Aberdeen-based Cosalt said there had been a series of "doubtful transactions involving a supply company", resulting in an inventory shortfall.

Calum Melville, who has resigned from the Dundee FC board, was earlier suspended from his post at Cosalt while the review was carried out.

Mr Melville was head of the offshore division.

Cosalt had earlier said it did not believe there was illegal activity.

Cosalt shares fell to 3.63p on the London Stock Exchange. They touched an all-time trading low of 3p earlier in the session.

The company's offshore division accounted for 41% of its total sales (£107.8m) in 2009.

The company, which provides safety equipment and services for the offshore oil & gas and marine industries, said the transactions could give rise to claims against those involved with the supplies.

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