Telit Communications shares tumble as profit warning takes gloss off boardroom changes

 
Oliver Gill
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Richard Kilsby (not pictured) has been appointed non executive chairman (Source: Getty)

Internet of Things firm Telit Communications today inserted the former boss of bookie 888 as its new chairman and firmed up a number of top exec appointments.

But the appointments could not stop shares in the Aim-quoted firm from sliding more than 13 per cent after a warning that profit margins have been squeezed. Earnings will be "materially below" previous guidance.

Richard Kilsby has been appointed non executive chairman with immediate effect and interim chief exec Yosi Fait has seen his position made permanent.

The changes come after Telit recently endured a tumultuous few months with boss Oozi Cats stepping down in August amid fraud allegations. He was accused of being Boston-based businessman Uzi Katz, who fled the US in 1992 after he was accused of wire fraud.

Read more: This internet of things provider could be getting new leadership

Operating head Yariv Dafna joins the board as finance chief. Simon Duffy has been appointed a senior non-executive director and chair of the audit committee.

Kilsby replaces Enrico Testa as chair, who will stay on the board as an executive director.

Telit's board said it was "committed to delivering a significant rationalisation of the group's product lines and a reduction in its cost base". Further details will be laid out in early December.

In a statement, the firm said:

Early indications are that pressure on gross profit margins... has been greater than expected.

As a result, the Board expects adjusted Ebitda [earnings before interest, taxation, depreciation and amortisation] for the year to be materially below previous guidance. Revenues and adjusted Ebitda for the second half will, as usual, be greater than for the first.

Read more: Telit boss Oozi Cats has stepped down after fraud allegations

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