AIM-listed Fuse 8 has suspended its chief executive Nigel Hunter and is weighing up a sale of the business as it launches an internal investigation into its performance.

The digital marketing agency told the Stock Exchange it had discovered its first half trading was below expectations and it was no longer confident it could achieve its full-year forecasts.

Fuse 8’s board had requested Hunter provide an updated review of its performance and an estimate of performance for the remainder of the current financial year. Hunter did not provide this information and on 26 August, tendered his resignation which was not accepted.

An internal review has been launched and Hunter relieved of his duties.

Fuse 8 said is now unlikely its plans outlined upon flotation will be fulfilled in the short to medium term and a range of options are being considered.

These include delisting the business reorganising in a lower cost environment and selling the operating businesses of the group.

The business added that it was not currently considering any offer.

In June, Leeds-based Fuse 8, which floated after a £5m reverse takeover last year, increased turnover by 12 per cent to £5m in its first set of results since its admission to AIM in July 2010.

However, pre-tax profit in the year to 31 March 2011 fell to £230,000 from £585,000 in 2010.