Shareholders back Norman Hay delisting
SHAREHOLDERS at Coventry-based specialist chemicals group, Norman Hay have voted by an overwhelming majority to back plans to have the company delist from the Alternative Investment Market (AIM).
More than 87% of shareholders voted in favour of the move at a general meeting yesterday (Tuesday). Cancellation of the share trading will take effect on September 8.
The move was recommended after directors of the business said they believed the annual costs of maintaining an AIM listing – around £90,000 – could be better spent elsewhere.
Last month (August), the company said it believed the AIM placing was a drain on resources and any maintenance of its listing outweighed any benefit.
In a statement yesterday, the company said it now intended to open a dealing arrangement to enable shareholders to trade their ordinary shares by way of a matched bargain service.
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The company also issued a trading update saying that business during the first six months of 2010 remained consistent with predictions outlined in June.
“Our automotive impregnation and sealants business continues to show good results internationally, although we remain cautious as to the level of recovery that will be sustained in the short term in the automotive industry.
“The engineering business remains focused on meeting its healthy order book, which currently includes a number of large overseas contracts,” it said.
Declining revenues in the UK-based surface coatings operation, particularly sites focused on oil and gas, have continued but the firm said it expected these to recover.
It also said it continued to work well with Normet, its partner in its construction chemicals division, adding that although conditions remained challenging in certain markets, the performance in 2010 to date exceeded 2009.
“Generally, the group has performed well during the first six months of 2010 and, as a result, the directors are proposing to raise the interim dividend to 2.2p per share,” it said.
The dividend will be paid on October 29 to shareholders on the register as of October 1, 2010.
