UK (Commonwealth) _ One of the largest software businesses in the UK said it was “saddened and shocked” and announced the beginning of an inquiry into its former boss’s covert share transaction.
Bytes Technology Group PLC said that it has opened an inquiry into the share dealings of Neil Murphy, the former CEO, following revelations that he had concealed a significant number of trades in company stock. Bytes is listed on the FTSE 250, disclosed that its long-time CEO Neil Murphy engaged in over 100 instances of unlawful share trading.
Murphy, 60, who managed the business’s 2020 public market float, abruptly left last month after learning about a request for information financial authorities about his share transactions. Surprisingly, he resigned the morning of the planned board meeting on February 21, despite having originally stated that he would respond to the Financial Conduct Authority (FCA) during the meeting.
Murphy acknowledged engaging in 119 unauthorized and unreported transactions from January 2021 to January 2023. Since then, Murphy’s attorneys have discovered 15 more deals totaling around £1.5 million that he made on Alison’s behalf. “The board is saddened and shocked by Murphy’s actions, which it finds hard to comprehend,” a Bytes spokeswoman stated.
On Monday morning in London, shares of the Surrey, England-based provider of software, security, AI, and cloud services fell 13% to 495.40 pence a share. Shares in Johannesburg fell 13% to R 118.50. Murphy resigned in February after revealing several secret trades in company shares to the BTG board.
BTG provided an explanation of the resignation on Monday, stating that it was a result of Murphy’s voluntary request for information on February 14 from the UK Financial Conduct Authority. Murphy could have carried out further transactions that weren’t revealed to the market or the FCA, according to the RFI.
Murphy resigned on February 21, the day he was scheduled to provide his initial statement at a board meeting. Murphy participated in 119 secret transactions on 66 trading days between January 6, 2021, and November 10, 2023, according to a February report by BTG.
According to BTG, Murphy’s attorneys have revealed 15 more transactions that his wife carried out on his behalf between December 2021 and November 2023. BTG expressed its “saddened as well as shocked, which it finds hard to comprehend” reaction to Murphy’s conduct.
According to BTG, an impartial commission was looking into Murphy’s departure and his hidden stock trades. The committee is receiving advice from Travers Smith and PricewaterhouseCoopers. Following completion, the directors’ shareholdings table in this year’s directors’ compensation report will have a prior year adjustment applied to it, the statement stated.
In a different statement, BTG stated that robust demand will propel double-digit yearly profit growth.
Both adjusted operating profit growth and gross profit growth are anticipated for the fiscal year that concluded in February to have grown by more than 25%, with gross invoiced income exceeding 12%. According to Bytes, this is a reflection of the high demand that clients in the public and business sectors have for software and IT services.
In a statement, the business stated that it is “continually confident in its ability to deliver sustained double-digit growth” due to the continued support from vendors, enduring and strong connections with clients, and the diligent work of its devoted workers.
One of the top providers of software, security, and cloud services in the UK, Bytes Technology Group plc, has given the following update on the Board’s inquiry into the events surrounding the departure of BTG’s former CEO, Neil Murphy, on February 21, 2024. The Company offers a planned trade report on its financial performance for the year ending February 29, 2024, a record year for the Group, in a separate release made today.
Murphy’s resignation
A voluntary request for information (“RFI”) from the Financial Conduct Authority (“FCA”) that was submitted to Mr. Murphy on February 14, 2024, served as the impetus for his departure. According to the RFI, following the company’s IPO, Mr. Murphy could have carried out further transactions that he chose not to report to the FCA or the market. Mr. Murphy notified the Board that on February 21, 2024, during a planned Board meeting, he would provide his draft response to the FCA’s questions. But on the morning of this meeting, Mr. Murphy abruptly resigned with immediate effect, citing a failure to disclose information about his share trades. The Company made this announcement the same day.
It was out that Mr. Murphy had participated in improper and concealed trading of the Company’s Ordinary Shares on 66 trading days between 6 January 2021 and 10 November 2023, totaling 119 transactions, as later revealed to the Company and declared on 23 February 2024.
