YORK based technology and software business Trustmarque was facing accounting issues prior to being acquired by a turnaround investor it has been revealed.

The £130-million York turnover business, based in Huntington, had brought in restructuring and recovery firm Resolve in a bid to find a buyer following what was described as “a funding gap” by backer Dunedin.

It was later acquired by Liberata UK for an undisclosed sum.

Accounts for the 16-month period to 31 December 2013 have now revealed a review of accounting estimates, in particular with regards to revenue recognition following its 2013 acquisition by private equity firm Dunedin, led to restatements totalling £2 million to the results Trustmarque reported for 2012 when it was owned by LDC.

Turnover for 2012 was restated from £131.3 million to £130.8 million and pre-tax profit from £5 million to £3.5 million.

This, together with money already spent introducing additional services and the acquisition of services and consultancy specialist Opin Systems, led Trustmarque's ultimate parent company, Project Lennon (Topco) Ltd, being acquired by Liberata UK Ltd to pave the way for additional investment.

Trustmarque, which has been operating for more than 25 years, helps organisations license, deploy and manage technology from a wide range of developers.

Together, Trustmarque and Liberata have combined revenues in excess of £240 million, employing 2,000 staff across multiple UK locations and a client base of more than 1,700 public and private sector customers.