Boss of UK software giant Bytes to be investigated over 119 secret share deals

One of the UK’s biggest software companies has said it is “saddened and shocked” as it launches an investigation into secret share trading by its former boss.

Bytes, which is listed on the FTSE 250, said long-serving chief executive Neil Murphy participated in unauthorized share trading on more than 100 occasions.

Murphy, 60, who oversaw the company’s 2020 IPO, made a surprise exit last month after receiving a request for information about his stock trading from financial regulators.

Although he initially said he would give his response to the Financial Conduct Authority (FCA) at a board meeting scheduled for February 21, he surprisingly resigned on the morning of the meeting.

Murphy admitted to 119 unauthorized and undisclosed transactions between January 2021 and 2023.

His lawyers have since identified 15 other transactions worth around £1.5 million made by Murphy on behalf of his wife, Alison.

A Bytes spokesperson said “the board is saddened and shocked by Murphy’s actions, which it finds difficult to understand.”