Updating investors on the situation at the company, Hamill said the marketing analytics software provider had suffered a “serious setback”, though he did not go into specific details.

He said: “I and the board are acutely aware of the need to improve the control of the sales management processes, of the damage this failure has done to investor value and of the concerns it will have caused to our business partners and customers as well as to our colleagues who work for the business.

“We are going to sort it out.”

A preliminary review has concluded that “operational procedures will, where ever practical, be adjusted to avoid the use of large, overlapping composite contracts including renewals and extensions”. Specific board approval will also be needed for any future large “non-standard” contracts, the company said.

Alterian’s board estimates that revenue for the year ended 31 March will be approximately £37m, compared to previous forecasts of £42m-£44m. Adjusted operating profit will be break-even.

An executive search firm has been engaged to recruit a successor to David Eldridge, the CEO and founder who resigned along with the company’s first profit warning on 4 April.