Financial problems at the cider maker HP Bulmer have prompted a second senior executive to resign.

The company said that Alan Flockhart, the group finance director, would be leaving following an investigation and review of the company's accounts by auditors Deloitte & Touche.

Three weeks ago the chief executive Mike Hughes resigned after the discovery of �3.3m ($5.2m) of previously unidentified promotional costs.

Deloitte & Touche has now unearthed further costs, taking the total amount to �3.8m.

The company said the impact of this would be to reduce pre-tax profits for the year to the end of April 2002 by �900,000.

The remaining �2.9m relates to profits in earlier years.

Bulmer said that shareholder funds would also be reduced by �2.7m.

Losing younger drinkers

Deloitte & Touche is now revising and auditing the 2001-2002 accounts.

Once that is done, the company will set a new date for the annual meeting which had to be adjourned because of the financial review.

Bulmer's growing problems sent its shares falling 5%, or 11.5 pence, to close at 206p.

At the beginning of the year shares stood at 432p.

But they have fallen as poor trading and problems in overseas markets have hit profits.

The group has also been hit by the rise of the 'ready-to-drink' market with brands such as Smirnoff Ice and Bacardi Breezer tempting younger people away from cider.