Stavert Zigomala set to leave Stock Market

STAVERT Zigomala, the listed Manchester-based investment vehicle, wants to leave the Stock Market, on the grounds of cost and compliance.

The organisation, which was originally founded in 1860 in Manchester and was a merchant-converter textile company trading internationally, sold Petco, a furniture wholesaler and its last trading business in May 2001 ,and has since then maintained its listing at a cost of around £10,000 a year.

It has called a meeting on August 2 where its investors will be asked to back the board’s proposal to cancel the listing. It approved this will happen on September 3.

Chairman Edward Cooper said: “Since the company concluded the sale of its only trading business, Petco Furnishers some years ago, the only activity has been in connection with the holding of investments. Because the company, for listing purposes, is not categorised as an investment company it is not permitted under the Listing Rules to buy or sell investments or other securities. The cost of initial or continuing compliance in converting to investment company status would not, in the opinion of the board, be justified.”

The company said its listing costs to the London Stock Exchange and to the Financial Conduct Authority  amounted to £10,630 in the year to the end of May. In addition it has to pay fees for regulatory announcements, of around £400 a year.

Due to not being allowed by the regulator to buy and sell investments, Stavert Zigomala has amassed a cash balance of around £500,000, which as a private comapny will be invested back in the stock market.

Mr Cooper, whose father and grandfather both worked for Stavert Zigomala when it was still a textile business, said the business has around 70 shareholders and a market capitalisation of £3m.

He said the group’s textile operations had ceased in the 1960s when the Cuban government introduced punitive import tarifs.

Stavert Zigomal’s textile heritage is celebrated at MOSI, Manchester’s museum of science and industry.