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FCA starts probe into Telit Communications
The Financial Conduct Authority has notified internet of things group Telit Communications that it has kicked-off an investigation into the firm with regard to its timeliness when announcing certain matters, including its interim results published on 7 August 2017.
While no further details were provided by either party, Telit had been involved in a number of spats in recent times, having been informed just last week that the first level tax court in Italy had rejected appeals filed by the firm against penalty deeds issued by Italian tax authorities in August 2015.
In a statement, the AIM-listed enabler said it intended "to appeal and to vigorously defend its position and has been advised that its position in this matter remains strong."
After dumping former chief executive Oozi Cats, alleged to actually be US wire-fraudster and fugitive Uzi Katz, Telit announced in February that it had agreed on new financing with its lenders, leading to a brief rise in share prices.
Katz was indicted alongside his wife, Ruth V Katz, before the couple fled the US ahead of a plea hearing.
The pair had been accused of "flipping" properties to take out mortgages with inflated values, with court filings showing the warrants were yet to have been dismissed.
"The group clearly faced a number of unique challenges during the course of 2017 which have unquestionably affected our financial performance in the short term," said chairman Richard Kilsby.
Telit said it has "cooperated fully with the FCA in its enquiries to date and will continue to do so."
As of 1100GMT, shares had slumped 4.94% to 150p