Infoserve looks to delist

ONLINE search and directory firm Infoserve is asking shareholders for permission cancel its AIM listing and change its name to CityVisitor Group.

In a statement, the borad said it had become concerned at the liquidity in ordinary shares in the company had become limited with 89% now held in directors’ hands.

It said: “The board has conducted a review of the costs and benefits associated with having the Company’s shares traded on AIM.

“As a result of this review, the board has concluded that it is no longer in the best interests of the company or its shareholders as a whole to maintain the admission to trading on AIM of the ordinary shares and intends to seek the authority of shareholders for the cancellation of the admission.”

The company said that the lack of liquidity had contributed to the decline in the market capitalisation of the company which had, in  turn, made it difficult to attract investor interest. The inability to secure additional equity capital at reasonable value was limiting the company’s ability to grow, it said.

Last week the company warned that the bad weather had caused a £60,000 loss in revenue.