Shares in AIM-quoted architect Archial Group have been suspended because of worries about its financial position as it negotiates about the tax it owes to the HMRC.

The shares were suspended at 3.15pm at 1.5p each.

There have already been indications of problems at the architect. In August, Archial admitted that its 2010 figures will be significantly below expectations because several projects have been cancelled or delayed due to reductions in government spending.

Archial also admitted at that time that it was running short of cash. It is talking to its bank and principal shareholder about financial support while it negotiates its tax position with the HMRC. Net debt was £13.5m at the end of 2009.

Interim figures are due to be published on 29 September.

In 2009, Archial made an underlying pre-tax profit of £1.49m, down from £1.53m the year before. Revenues tumbled from £42.5m to £33.9m.

At the suspension price Archial is valued at £3.57m.

Archial, then known as SMC Group, joined AIM in June 2005, when it raised £4.6m at 43p a share. It made a number of acquisitions but it ran into problems. A 19-for-five open offer at 8p a share raised £13.3m net at the beginning of 2008.

Related share prices
Archial Group (ARL) share price