leadf
logo-loader
viewProactive Group

AEA plummets after admitting shares are effectively worthless

windfarm350_50067d34533ca.jpg

Shares in AEA Technology (LON:AAT) plummeted after the climate change consultancy revealed there will be “little or no value for shareholders” as it turns to “strategic options” to fix debt woes.

The company, which was spun out of the Atomic Energy Authority in the 1990s, said that it had struggled to find a long-term cure for the current levels of debt and pension costs.

“Despite constructive discussions with the Bank and [pension] Trustee, the board has been unable to achieve a long term solution to the existing levels of net debt and the significant on-going funding costs of the group's retirement benefit obligations,” said AEA in a statement.

“As a result, with the support of the Trustee and the Bank, including short term financial support, the board has decided to consider all strategic options to realise value. 

“However, the board does not envisage there will be offers for the share capital of the company and the board expects that such options will result in little or no value for shareholders."

It added that the new strategy, which was put together with Lloyds Banking Group (LON:LLOY) and the trustee of the group’s defined benefit pension scheme, sets out a “positive way forward” for AEA and its employees, while the new plan has already started to improve its operational efficiency.

Shares nosedived on the news, tumbling 75 per cent to 0.055 pence per share, giving it a market value of just £727,000.

Back in November, AEA shares shed 85 per cent after it issued its second profit warning in seven months and chief executive Andrew McCree left the firm.

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Benchmark Holdings' present at the Proactive One2One Virtual Forum

Benchmark Holdings' (LON:BMK) Trond Williksen, CEO & Septime Maguire, CFO pitch to investors at the Proactive One2One virtual forum.  Benchmark's mission is to enable aquaculture producers to improve their sustainability and profitability. We bring together biology and technology, to...

1 day, 1 hour ago

2 min read