Food ingredients business plans to delist from AIM
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North West food ingredients business, Real Good Food is seeking shareholder permission to delist from AIM.
At its AGM today, the Liverpool company is proposing the cancellation as it believes it will be in the “best interests” of the company moving forward.
The group said delisting will save on costs, management time and the “legal and regulatory burden” associated with maintaining the company’s admission to trading on AIM which, it believes are disproportionate to the benefits to the company.
It also said the AIM quotation of the shares did not offer investors the opportunity to trade in meaningful volumes and due to the limited liquidity in the shares it said continued admission to trading on AIM “no longer sufficiently provides the company with the advantages of providing access to capital.”
Last week the company announced its financial results which had been hit by Covid-19 challenges.
In the year to March 31, 2021, the Liverpool headquartered company reported a decreases in sales by 9.5% to £37.3m, down from £41.2m in 2020, in a year affected by covid-19.
The majority of the revenue decline was in the group’s first quarter – which coincided with the first UK lockdown – and predominantly in the wholesale and manufacturing sectors which were down by £2.5m (-9%).
However, Real Good Food said it remined positive about the future.
It said: “Since year-end, the Group has seen a pick-up in revenues across every sector. After five months of trading, revenues are 33% up on the same period last year and, more importantly, 1.3% ahead of the first five months of FY20.
“FY22 year-to-date EBITDA is a profit, trading ahead of FY21 EBITDA and FY20 EBITDA; this is particularly pleasing given the short-term challenges and increased costs of logistics due to driver shortages and limited availability of shipping containers.
“Prospects for the remainder of the year are good and the Board is confident of reporting further progress. It is also encouraging to note that the business is being recognised for its innovation and quality of new products.”
Company directors have unanimously recommended that shareholders vote in favour of plans to cease trading on AIM.