Telit shares take a knock after FCA announces wider investigation into company announcements

Shares in technology company Telit Communications have taken a five per cent hit after the financial watchdog announced it was broadening the scope of its investigation into the company.

The Financial Conduct Authority (FCA) first announced its investigation into Telit, an internet of things solutions provider, in March. Telit notified investors that the watchdog was assessing a major profit warning it issued in 2017 and the "timeliness of announcing certain matters" in its half-year results last August. 

Now the FCA will also look into how accurate the announcements were, including a trading update of 25 April 2017 and a placing of shares announcement made on 4 May last year and completed a day after.

Telit said it has "cooperated fully with the FCA in its enquiries to date and will continue to do so".

It said the board of directors had been completely revamped since the events of last year.

The FCA launched its inquiry into Telit on the back of the departure of its chief executive, Oozi Cats.

Cats resigned last August after he was accused of being Boston-based businessman Uzi Katz, who fled the US in 1992 after he was accused of wire fraud.

City law firm Cameron McKenna found in an investigation that Cats had "knowingly withheld" a US indictment.

In September the company cut ties with the chief executive it bought on after Cats's departure. At the time, Telit released a statement in which it said Yosi Fait, who became CEO after serving as finance director, would "cease to be a director and CEO with immediate effect".