It subsequently emerged in iSoft’s annual report for the year to April 2006, that Whiston had been classified as a “good leaver” i.e. a person who was forced out of the company for reasons beyond his control.

His pay-off totalled nearly £700, 000, consisting of £552,000 in 12 months basic salary and pension contributions. He also received a £133,000 cash payment to settle deferred bonus shares.

Here Finance Week examines Whiston’s history at the company and the events that led up to his sudden departure four months ago.

October 2006:The Accountancy Investigation and Discipline Board (AIDB) announces it will investigate RSM Robson Rhodes [1], former iSoft auditor for financial years ended April 30, 2003, 2004 and 2005.

The AIDB will also investigate executive and non-executive directors [2] at iSoft, including former chief executive, former group finance director and former company secretary Tim Whiston.

October 2006:iSoft narrowly avoids shareholders voting down its remuneration policy at its Annual General Meeting [3] (AGM). Investors object to bonus shares awarded to finance director Gavin James and Ravi Kumar, chief technology officer.

October 2006:iSoft declares it has received expressions of interest from third parties. Management also states that its new funding arrangements, agreed in August, will become “progressively more onerous through 2007” and it has been addressing long term funding and strategic options.

Full-year and interim revenue for the year to April 30, 2007, will decline between 10 per cent and 15 per cent.

September 2006:iSoft partner Accenture withdraws from the NHS’ National Programme for IT. Computer Sciences Corporation [4], also an iSoft partner, is named as lead contractor.

September 2006:Whiston is awarded a pay-off of nearly £700,000 for being a “good leaver”. The package includes £552,000, equating to 12 months basic salary and pensions and a cash payment of £133,000 for deferred bonus share.

August 2006:iSoft reports delayed financials for the 12 months to April 30, 2006. It records a £343.1m pre-tax loss on a £2.2 pre-tax profit last year. Revenue rises to £201.6m on a previous £186.1m. Management agrees a new 15 month facility with its banks, increasing funding from £144m to £166m.

August 2006:iSoft admits the Financial Services Authority is investigating the company.

August 2006:iSoft suspends commercial director Steve Graham after auditor Deloitte uncovers evidence of accounting irregularities affecting financial years ended April 30, 2004 and 2005.

iSoft launches a formal investigation.

July 2006:iSoft uncovers possible accounting irregularities and delays the publication of full-year figures for the year to April 30, 2006.

June 2006:Whiston resigns from iSoft. The chief executive role is taken on by chairman John Weston [5].

Whiston says: “I have become increasingly concerned that my continued role with the company may represent a source of negative speculation and comment, being an unhelpful distraction to those within it.”

June 2006:iSoft issues a third profit warning and changes to its accounting policy. Revenues on contracts will now no longer be booked upfront, but spread over the lifetime of the agreement. Its full-year results will be delayed.

Management is in talks with banks over covenants.

June 2006:iSoft sells Swiss operation to local IT group Nexus for £987,000.

May 2006:ABN Amro analyst Charles Brennan warns iSoft has a discrepancy in its accounts that continued to “undermine confidence in the accounts”.

April 2006:iSoft issues second profit warning. Full-year profit forecasts are reduced to £17m - £22m on previous £24m - £42m. The restatement is due to iSoft being unable to update and extend an existing UK contractual arrangement not related to the NHS National Programme on IT.

The company makes the statement following a warning in January, an announcement in early April and “the significant recent negative public comment surrounding the company”.

April 2006:iSoft is forced to makes a statement as speculation of a imminent profit warning sends shares down from 147p to 78p in less than half an hour.

It says: “iSoft is aware of market speculation regarding the financial standing of the company. The company believes this speculation is unfounded and reiterates the guidance for the current financial year in its trading update of 30 January 2006.”

April 2006:iSoft senior independent director Colin Wall resigns from the company with immediate effect to pursue other interests.

March 2006:NHS National Programme contractor Accenture blames delays in the installation and development of computer systems on iSoft.

January 2006:iSoft issues a warning after disclosing delays to the NHS’ £6.2bn National Programme on IT will reduce forecast revenues.

October 2005:John Weston, former chief executive at Bae Systems and chairman of Spirent, replaces Patrick Cryne as chairman at iSoft.

September 2005: iSoft buys Spain’s Novasoft for £8.2m.

July 2005:Colin Wall, former senior independent director at merger partner Torex, is appointed as senior independent director at iSoft. Wall is also chair of the remuneration committee.

June 2005:iSoft releases full-year results for the year to April 30, 2005. Revenue increases 75.5 per cent to £262m and pre-tax profit rises to £44.5m on a previous £17.5m.

June 2005:Patrick Cryne steps down as non-executive director but will remain with the company as an advisor. New group finance director Gavin James is appointed to the board. Sir Digby Jones decides not to seek re-election as a non-executive director.

Tomkins finance director Ken Lever joins iSoft as a non-executive director and chair of the audit committee.

April 2005:Gavin James, former finance director at Morse, joins iSoft as group finance director. He will continue to be a director at Morse no later than August 31, 2005.

iSoft also appoints non-executive director Geoff White as deputy chairman on concerns that former chief executive Patrick Cryne position as non-executive chairman does not comply with the Combined Code on Corporate Governance.

December 2004;iSoft finance director John Whelan leaves after taking over the post in February.

October 2004:iSoft chief technology officer Ravi Kumar is appointed as a director. Patrick Cryne relinquishes executive statues to become non-executive director.

Teifion Hill becomes company secretary, taking over the role from Tim Whiston.

Also, all claims against Mark Woodbridge have been investigated and subsequently withdrawn. Woodbridge resigns from the group.

Former iSoft chief executive and former Torex chair Chris Moore settles a dispute with the company over the termination of his role as chief executive.

July 2004:iSoft responds to a national newspaper article questioning its accounting policies. It states it has a very open relationship with Accenture.

It also states: “Furthermore, there are no issues with iSoft’s accounting policies, nor with its financial viability.”

July 2004:Mark Woodbridge, business development director and former finance director at Torex, is suspended from his duties but remains a director at the company.

A statement reads: “The matter related to the suspension predate the merger with Torex…”

July 2004:iSoft directors offload £44m worth of shares. Sellers include chairman Patrick Cryne and business development director Mark Woodbridge. Tim Whiston and finance director John Whelan are buyers of the stock.

June 2004:iSoft releases full year results for the year to April 30, 2004. Revenue rises to £149m on a previous £91.5m as pre-tax profit tops £28.9m on £23.5m last year.

April 2004:iSoft gains approval from the Office of Fair Trading to go ahead with a merger with Torex dependent on asset disposals.

February 2004:John Whelan is appointed as finance director to replace Tim Whiston who becomes chief executive.

February 2004:iSoft announces plans to invest $100m in its Indian offshore development centre in Channai, established in 2001. Tim Whiston hopes to increase headcount from 300 staff to 800 over the next three years.

February 2004:iSoft disposes of Torex Retail for £66.9m.

February 2004:iSoft chief executive Chris Moore steps down and resigns. Moore is replaced by Tim Whiston.

July 2003:iSoft enters merger discussions with Torex. Whiston is named as finance director in the combined group, and Cryne is proposed as executive chairman. Torex chairman Chris Moore will become chief executive and finance director Mark Woodbridge will become business development director.

June 2003 - iSoft reports full year figures for the year to April 30, 2003. Profits rise 52 per cent to £23.5m on turnover up 50 per cent to £91.5m. Net debt is £2.9m, on £3.7m inn net funds last year. iSoft’s cash balance is £45.5m compared to a previous £23.7m.

November 2002 - Tim Whiston, aged 34, named as chief executive designate, while retaining finance director role. Whiston will succeed chief executive Patrick Cryne who will become director, corporate development at iSoft’s Annual General Meeting (AGM) in July 2003.

November 2002 - iSoft agrees to lower the cap on directors’ bonuses, pegged at 300 per cent of base salary, under pressure from shareholders.

November 2002 - iSoft acquires Revive Group Ltd for £4.1m.

July 2002 - iSoft acquires Northgate Information Solutions for £33.5m.

May 2001 - iSoft acquires Eclipsys UK and Australian businesses.

July 2000 - iSoft lists on the London Stock Exchange.

April 2000 - Tim Whiston appointed to the board at iSoft.

August 1997 - Tim Whiston, aged 29, joins iSoft, formerly KPMG’s healthcare information systems business, as finance director.