Telit plc. explodiert

Telit expects to see, as normal, significant cash generation in the second half of the financial year and the Group expects to satisfy all financial covenants which are imposed upon it when tested as at 30 September 2017. Telit’s financing banks have continued to express support in the Group.  As a precautionary measure, one financing bank granted an advance waiver for any potential breach of a covenant as at 30 September 2017, relating to the ratio of, in broad terms, free cash flow generation against debt service obligations (being the covenant previously notified as having been breached and waived) amongst other amendments including as to information flow and operational issues.

The Board has considered previous speculation relating to Telit's financial condition, trading performance and business relationships. The Board remains confident of the strength of the financial controls within the business. For the sole purpose of providing reassurance in this regard, the Board has engaged an independent third party accounting firm to perform a review of certain elements of the Group’s financials and this work is ongoing.

As previously announced, the Board is conducting a search to appoint three additional independent non-executive directors, one of whom will become Chairman. The search is progressing well and is ongoing.

The Group intends as part of its ordinary course retention planning in coming days to complete the issue to its senior, but not board, executive tier and other key employees, of options over ordinary shares.

Yosi Fait, Interim Chief Executive, commented:

“Despite a very difficult few months, we have retained our close customer relationships and our highly skilled employees and management team.

“We are focused on implementing a refreshed, more disciplined and prudent, as well as transparent, approach to corporate governance and the delivery of increased shareholder value.  

“We are now in an ideal position to address the growing opportunities in the high-growth IoT industry. So I am confident that we can exploit this position, supplying customers with the best-in-class end-to-end IoT solutions.”

Telit expects to publish its routine Q3 trading statement in mid November 2017.

This announcement is made in accordance with Article 19 of the EU Market Abuse Regulation 596/2014.