MDA suffers double blow

MDA consulting has suffered a double blow with poor financial results and the loss of its chairman Charles Johnston.

The company’s latest results show it made a small loss for the year to 30 September 2005 of £5,300. Group turnover for the period was £9.5m. The firm employs 140 people, including 119 fee earners.

Johnston is understood to have left the firm following a disagreement with the company board. Finance director Ian Storier is also believed to be leaving. Johnston owns a 16% holding in MDA or 8,000 shares. Storrier owns 5,000 shares.

Johnston told QS News he was in the midst of "sensitive negotiations" with MDA and would likely sell his stake in the firm.

A source close to the firm said MDA would become a turnover target if it was unable to buy back Johnston’s shares.

He added that MDA had “too many offices” around the UK, resulting unmanageable overheads.

Johnson’s was paid £205,000 for the year by MDA.

The source added that Johnston and Storrier were the only directors absent from a recent MDA party to celebrate a member of staff, Roy Smith, serving 40 years at the firm.