Shore Capital shares slide on news of proposed AIM cancellation
Shares in investment group Shore Capital have tumbled over 28 per cent this morning following the news that the company would seek to remove its shares from AIM, as the company reported a significant drop in pre-tax profit.
In a statement issued to the stock exchange this morning, Shore said it would seek shareholder approval at its upcoming AGM to cancel the company’s shares on London’s alternative AIM index.
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Shore’s shares were trading 28.38 per cent down at 132.5p in morning trading.
The company said a lack of liquidity and relatively low price at which its shares had been trading on the exchange had played a part in the decision, as well as the “cost and management time” associated with maintaining the listing.
In interim results published today, Shore reported a 46 per cent drop in profit before tax, which fell to £1.3m.
Reorganisation costs of £1.4m related to its acquisition of investment group Stockdale Securities weighed heavily on profit, the company said.
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Shore’s revenue rose just over 13 per cent to £24m for the first half.
Over 75 per cent of shareholders must approve the delisting of its shares from AIM at Shore’s AGM next month for it to proceed. Shore will retain its listing on the Bermuda Stock Exchange if the plans go ahead.