Scholium Group Plc (AIM:SCHO), owner of the Shapero Rare Books bookshop, intends to delist its share from the AIM junior market as a cost-saving measure.
Though only a minor delisting, Scholium’s decision is a microcosm of the wider issues facing the London capital markets.
The group highlighted that onerous expenses tied to maintaining a listing have chewed into profits, while shares have consistently traded at a substantial discount.
Scholium stated: “The board estimates that the group could, by cancelling the admission of its ordinary shares to trading on AIM, reduce its overheads by at least £75,000 per annum…
“This reduction would have increased profit before taxation in the year ended 31 March 2024 by at least 2%.
AIM has long been seen as a ‘growth engine’ for smaller quoted companies, but a litany of delistings in the past few years has served to highlight its shortcomings.
Earlier this year, the number of companies on London’s AIM market dropped below 700 for the first time since 2001, with 92 firms delisting in the space of just 12 months.
Policymakers have been mulling options to simplify the listing process in London in order to revitalise the capital markets across the small-cap and big-cap segments.
AIM secured a partial victory in October when Labour chancellor Rachel Reeves maintained an inheritance tax exemption (albeit at a reduced rate) on AIM-listed stocks
In interim results published by Scholium alongside its delisting plans, the group noted a 30% year-on-year revenue uptick and a substantial increase in profit before tax from £43,000 to £167,000.