Bytes Technology Group (BTG) said yesterday the sudden departure of its former CEO Nigel Murphy on February 20, 2024, had been prompted by a voluntary request for information from the Financial Conduct Authority (FCA) about undisclosed share transactions.
Bytes, one of the UK’s leading software, security and cloud services companies also listed on the JSE, yesterday provided an update on a board investigation into the circumstances around Murphy’s resignation.
The FCA had sent Murphy a request for information on February 14. It had indicated Murphy may have done additional transactions that were not disclosed to the market or the FCA, since the company’s IPO.
“Mr Murphy informed the board that he would share his draft response to the FCA’s inquiries at a scheduled board meeting on February 21, 2024. However, on the morning of this meeting Mr Murphy unexpectedly resigned with immediate effect, indicating he had failed to make disclosures related to his share dealings,” the FCA said.
Murphy had allegedly engaged in unauthorised and undisclosed trading of the company’s shares on 66 trading days between January 6, 2021 to November 10, 2023 totalling 119 transactions, the statement said.
“This revelation came as a shock to the other board members, especially considering the company’s previous investigation in 2023 into an unrelated share dealing disclosure matter, which had clearly highlighted to all board members the importance of absolute accuracy and transparency in all matters related to share dealings,” Bytes’s board said yesterday.
Subsequently, on March 12, 2024, Murphy’s lawyers provided additional information outlining 15 additional transactions on 10 different trading days conducted by Murphy on behalf of his wife between December, 2021 and November, 2023.
Also on March 12, 2024, Murphy, through his legal representatives, reiterated that there were no further relevant transactions.
“The company is cooperating fully with the FCA… And will respond to any further requests to assist the FCA in a timely manner,” the board said.
“Once the committee has completed its investigation and reported to the board, the company will be able to provide a date for the release of its preliminary results for FY24. It is envisaged this will be in late May or early June, 2024,” the board said.
BUSINESS REPORT