Smarttech247 Group PLC (AIM:S247) is planning to delist from London’s junior AIM market, joining a growing list of companies leaving the exchange after sharp share price declines and persistent funding challenges.
The Dublin-based cybersecurity group, whose stock has dropped about 71% on Friday, said the costs and regulatory burden of maintaining a quotation outweighed the benefits.
It added that AIM undervalued the business despite its strong trading momentum.
The company expects to report revenue for the year to July ahead of forecasts after winning multi-year contracts with hospitals, automakers, a global pharmaceutical group and a major London airport.
Recurring revenue has risen to 74% of the total, from 61% last year, though margins came in slightly below guidance.
Chief executive Raluca Saceanu said delisting would give the business “greater strategic flexibility” and free resources to pursue growth in private hands.
A matched bargain facility will be set up to allow shareholders to trade stock once AIM trading is cancelled, subject to approval at a forthcoming general meeting.
The stock fell 6p to 2.5p.