Fulcrum Utility Services Ltd (AIM:FCRM), the energy infrastructure group, shed more than two-thirds of its value on Monday after it announced it would be cancelling its AIM listing subject to shareholder approval.
Arguing there are limited prospects of raising additional equity on AIM, the group said trading volumes on the exchange have been too weak to justify the significant costs and regulatory burden associated with being a quoted company.
Shareholders will now vote on the decision at a general meeting at the end of September, and with a 75% majority required for the passing of the proposal, it looks likely to be a swift process, as more than 57% of shareholders are already in favour of the cancellation.
Offers will be made to shareholders via a circular and the exact proposal will be added to the group’s website later today.
Revenues at Fulcrum dropped by 18% to reach a little over £50 million in the 12 months to 31 March 2023, with the group reporting an underlying loss of £6.2 million, full-year results revealed on Monday.
Jennifer Babington, chair at Fulcrum, said turning performance around had been “challenging” but noted that the group is back on a path to profitability and is trading in line with management expectations.
Lindsay Austin, interim chief executive officer, added: “Our FY23 results reflect the legacy issues and the difficult conditions that the group has operated in, however, we are now in a stronger position and laser-focused on our path back to profitability as we continue to make improvements at pace.”
Shares are down close to 95% in the year-to-date and are currently trading around the 0.25p mark.