Business
Update on investigation
Update on investigation.
About this update from Bytes Technology Group Plc
[{"type":"text","content":"\n\n \n18 March 2024\n \nBytes Technology Group plc\nUpdate on investigation into resignation of\nformer Chief Executive Officer (\"CEO\")\n \nBytes Technology Group plc (\"BTG\", \"the Company\" or \"the Group\"), one of the UK's leading software, security and cloud services specialists, provides the following update on the Board's investigation into the circumstances related to the resignation on 21 February 2024 of BTG's former CEO, Neil Murphy.\n \nIn a separate announcement today, the Company provides a scheduled trading update on its financial performance in the year ended 29 February 2024, a record year for the Group.\n \nCircumstances around Mr Murphy's resignation\n \nMr Murphy's resignation was prompted by a voluntary request for information (\"RFI\") from the Financial Conduct Authority (\"FCA\"), which was sent to Mr Murphy on 14 February 2024. The RFI indicated that Mr Murphy may have conducted 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 21 February 2024. However, on the morning of this meeting, Mr Murphy unexpectedly resigned with immediate effect, indicating that he had failed to make disclosures related to his share dealings, and this was announced by the Company on the same day.\n \nAs subsequently notified to the Company and announced on 23 February 2024, it transpired that Mr Murphy had engaged in unauthorized and undisclosed trading of the Company's Ordinary Shares on 66 trading days between 6 January 2021 to 10 November 2023, totalling 119 transactions. This revelation came as a shock to the other Board members, especially considering the Company's previous investigation during 2023 into an unrelated share dealing disclosure matter (as further described below) which had clearly highlighted to all Board members the importance of absolute accuracy and transparency in all matters related to share dealings by directors, PDMRs, and persons closely associated with them (\"PCAs\").\n \nSubsequently, on 12 March 2024, Mr. Murphy's lawyers provided the Company with additional information outlining 15 additional transactions on 10 different trading days conducted by Mr Murphy on behalf of his wife, betwee...