Premium cake decorator and ingredients supplier Real Good Food saw profits tumble by almost 40 per cent today after it said it would miss profit expectations.
The non-executive director who chairs the company's audit and remuneration committees also resigned today.
The company, which operates a premium bakery division as well as decoration and ingredients, said that development costs had not been appropriately expensed in its previous expectations for full-year revenues to March 2017.
The cost of adjustments and further expenses is set to reduce EBITDA at the Aim-listed company to £2m for 2017, down from a previous forecast of more than £5m.
Shares in the company were down 37.59 per cent to 21.84p at time of writing.
An audit also revealed that two anticipated claims regarding its sugar purchase agreements had not yet materialised.
Separately, the company also noted that consultancy fees paid to chairman Pieter Totté and non-executive director Peter Salter had not been previously announced though their costs had been included in accounts.
Peter Salter stepped down from the company's board with immediate effect today. He was previously chair of the firm's remuneration and audit committees.