Justyn Randall has stepped down from the board of Multi Group after the firm accused him of misleading it over the value of the Global Medics business he sold to it.

In a trading statement, Multi Group said the financial performance of Global Medics was "likely to be significantly below the level portrayed to the company (Multi) by the vendors of Global at the date the business was acquired". (See feature, p26).

In December, Surrey-based Multi said it would pay an initial consideration of £9.6m for Global. It would also make additional payments of up to £4.1m, dependent on Global Medics achieving certain agreed performance targets for the year to 31 May 2006.

Multi said: "Discussions with the vendors of Global regarding a renegotiation of this transaction are ongoing and the board hopes to be able to report on the outcome of these discussions in the week commencing 14 August."

Randall told Recruiter he had stood down from the board "by mutual consent" but that he was continuing as director of Global Medics.

Multi said it now anticipates that it (Multi) will make a loss for its current financial year, which runs to 31 March 2007.

Multi's shares, which had been falling prior to the announcement, have dropped further. The company is now worth only about £2.5m on the Alternative Investment Market, significantly less than the price it paid for Global, the biggest of four acquisitions it has made since March 2005.

Randall was due to gain £6.85m from his 50% stake in Global, if the sale had been at the maximum price. He founded the company in 2002. When Multi bought Global Medics, it retained him on its board with a salary of £100,000, and a six-month notice period.

Randall told <I>Recruiter</I>: "I would like to put the record straight on one specific point: full disclosure was made to Multi Group prior to the sale of the financial status of Global Medics at that time. Multi acquired Global Medics in full knowledge of the company's financial and trading performance, and of the bases for the projections going forward."

Global Medics, which also trades under the Doctors on Call brand, provides consultants and senior medical professionals, mostly for the National Health Scheme. It also places nurses and social workers.