UK tech firm Telit Communications today attempted to draw a line under a year of "unique challenges".
After cutting ties with former chief executive Oozi Cats – amid allegations he had ties to US fugitive Uzi Katz – the Aim-quoted firm announced it has agreed new financing with its lenders.
Telit said it will wait until April to publish its 2017 figures, but in a trading update guided revenue will be between $374m and $376m. Earnings will be $20m-23m, the firm said.
"The group clearly faced a number of unique challenges during the course of 2017 which have unquestionably affected our financial performance in the short term," said Telit chairman Richard Kilsby.
We are resolved to ensure that the business is placed on a sustainable footing for the longer term and the group's financials are recalibrated on a prudent and conservative basis.
Internet of Things developer Telit said changes to the way it capitalises research and development costs means 2017 expenses will be "significantly" increased. In addition, the firm's auditors flagged adjustments provisions will weigh on full-year revenues.
But trading in the first two months of 2018 has been "considerably stronger" and is ahead of expectations, Telit said.
Telit has agreed a "more appropriate" suite of covenants with its lenders. In particular, a ratio of the amount of cash the business is generating to the cost of paying down debt has been amended.
Kilsby said: "We are pleased with the outcome so far. We have secured new covenants with our leading bank and trading in 2018 has started well. This underpins our confidence that we will deliver significant revenue growth as well as stabilising gross margins and improving cash generation in the current financial year."
Shares fell around four per cent in morning trading.