Shares in Aim-quoted recruitment consultancy Hat Pin have been suspended after finding errors in its 2007 accounts.

It says the financial results will be materially worse than previously expected.

The chief executive and finance director have indicated their intention to resign when results are announced.

The company has already shocked investors when it warned last month that profit would be 25% below market expectation because of problems with its Talent Business and weak UK trading.

Friday's accounting shock means its results are going to be even wider off the mark.

The Talent Business was sold for £1.5 million a fortnight ago.