Telit sees FCA expand scope of investigation

Internet of things enabler Telit has been notified by the Financial Conduct Authority that the watchdog has expanded the scope of its ongoing investigation into the accuracy of previous statements made by the troubled firm.

The FCA began its probe in March when Telit notified investors the industry body was investigating a major profit warning made by the firm back in 2017.

Telit claimed the FCA was looking into the "timeliness of announcing certain matters" contained within its interim results last August but stated on Tuesday that it now appeared to be assessing the accuracy of its April 2017 trading update and its placing a month later.

While the board of Telit has "changed entirely" since the events in question, most notably former chief executive Oozi Cats, alleged to actually be US wire-fraudster and fugitive Uzi Katz, the AIM-listed firm vowed to fully cooperate with the FCA in its enquiries.

Just last week, the group said it had continued to "trade well" during the year, with double-digit revenue growth and stabilised gross profit margins.

Telit now expects full-year revenues to be $415-425m and adjusted EBITDA to reach $30-35m.

As of 1200 GMT, Telit shares had slumped 5.72% to 125.30p.