Cosalt suspends head of offshore division

The Grimsby-based company, which provides inspection services and maintenance on oil rigs, said it did not believe any illegal activity had taken place.

In a statement, Cosalt said: "Calum Melville has resigned as a director with immediate effect and has been suspended from his day to day employment duties as head of Offshore Division, whilst the company carries out an internal review of the operating practices of the group's businesses in Aber-deen."

A spokesman said there was no suggestion that Mr Melville had acted illegally.

In June the group announced a doubling in first-half adjusted pre-tax profits to 1m, helped by cost cuts.

But sales fell by 8.5 per cent to 48.3m in the six months to May 2 as clients in the UK North Sea offshore division reduced spending on capital projects.

Cosalt's offshore division has been held back by low spending by oil and gas companies, particularly in the North Sea.

The company has restructured itself to focus on providing equipment and services to the oil, gas and marine industries.