Investbx dealt a blow as one of its firms delists

BIRMINGHAM’S online stock exchange Investbx has been dealt a major blow with the announcement that one of its three firms is to delist.

Investment company Early Equity said today it would be quitting the exchange to concentrate on its PLUS listing.

The Birmingham firm said the move would also help to reduce its costs.

The decision will come as a bitter disappointment to Sue Summers and her business partner John Handley, whose company Colmore Row Managed Services bought the rights to the exchange in April.

The exchange was secured for a token £1 from regional development agency Advantage West Midlands following a bidding process, which saw a number of competing offers tendered.

In a statement to the London Stock Exchange today, Early Equity said the withdrawal from Investbx was with immediate effect.

“This withdrawal will allow the company to concentrate on its PLUS listing and reduce the company’s cost base. The directors of the issuer accept responsibility for this announcement,” it said.
                            
In its half-year statement for the period ended February 28, 2011, the firm announced a loss for the six months of £15,420 (2010: £190). This was broadly in line with expectations.

In his statement at the time, chairman Jonathan Hall said: “The company continues to be constrained by its fully invested status. During the period, income was derived from directors’ fees and the company continues to bear the costs of its public quotation, although we have sought to reduce these wherever possible.

“In order to compensate for the lack of liquidity in the investment portfolio, the directors are attempting to bring in regular cash flows by increasing the scale of its service based offering. This remains at an early stage due to our cash position. However, the realisation of one or more of our investments would provide significant cash resources to enable us to reposition the company.”

The firm’s withdrawal leaves Investbx with just two listed companies, manufacturer Key Technologies and corporate events firm Teamworks Karting.