Battered UK chip-maker in fightback

IPHONE parts maker IQE has parachuted in new auditors as it fights allegations it misrepresented profits.

The Cardiff chip-maker said its accounts would now be handled by KPMG, replacing PwC.

Its shares have been battered in recent weeks after short sellers published research claiming its accounts were misleading. AIM-listed IQE has strongly rejected the findings.

Allegations against it were made by Shadowfall Capital & Research, which told clients it had concerns about ‘profitability and sources of cash’, and last week Muddy Waters Research also accused it of inflating profits in 2015 and 2016.

Yesterday IQE said: ‘IQE will be updating its website shortly to reflect the appointment of KPMG as its new auditor.

‘This is not required under AIM rules, but in the context of the two recent broadly similar and misleading reports published by funds with a short position in IQE, the company wishes to go above and beyond the disclosure requirements.’

Yesterday shares rose 6.2pc, or 6.2p, to 106.7p.