DTI officials raid Gladstone offices

INVESTIGATORS from the Department of Trade and Industry have raided software tiddler Gladstone following allegations that documents were doctored. Insiders said they seized minutes of board meetings and a report on working capital. Chairman Simon Preston said: 'Yes, they have made a visit. Why and what for is unclear to us. It's something we hadn't expected. You do what the regulatory authorities require.'

The shares plunged 32% to 4 3/4p in early trade, a fresh low. Gladstone, based in Wallingford, Oxford, is a gym membership software specialist. It has been dogged by controversy, its shares collapsing from a peak 199p. Last November, in a radical board shake-up, Preston took over from chairman and founder Brian Raven, who had previously survived attempts to oust him.

Sources said the DTI probe centres on the accuracy of documents on Gladstone's demerger last June of Transware, which sells translation services to training companies.