Pointon York cites increasing costs as it seeks de-listing
Sipp provider also blames infrequent trading for move, highlighting that there have only been two trades in past three years.
Pointon York Group announced today (16 August) that it is seeking to withdraw from the Plus market of the London Stock Exchange as the present benefits of being quoted are being outweighed by the ever increasing costs - both direct and particularly indirect - involved.
The directors highlighted that the company’s shares trade infrequently on the market with only two trades in the previous three years.
It also pointed out that whilst withdrawal from the Plus market will mean that the company can no longer make announcements through the Plus website it will continue to keep shareholders advised through mailings using the same reporting timetable as at present.
No formal alternative arrangements for dealing in the company’s shares have been proposed, although the firm said stockbrokers or the company’s corporate adviser Loeb Aron & Company can provide further information for those who wish to continue to trade securities.
Under the Plus rules, the company is required to give shareholders a period of 10 business days to object to the intended withdrawal of its securities from the Plus market. If “legitimate concerns” are raised, then the company will be required to call a general meeting.
Geoffrey Pointon, chairman of PYG, said: “The directors hope that the costs of such a meeting will not be necessary in the circumstances of seeking to reduce the costs incurred by your company for limited benefit at this time.”
Last month, the Lighthouse Group, the last IFA company on the Alternative Investment Market, announced plans to de-list, prompting fears about the future of advisory firms looking to raise capital publicly.
Midlands-based IFA AFH has been listed on Plus-SX since last June and was recently voted as newcomer of the year at stock exchange Plus-SX’s award
Separately, Pointon York Group announced that non-executive director Stephen Barclay has resigned from the board, following nine years with the group. The board has started the search for a non-executive director to replace Mr Barclay.