Infoserve looks for delisting from AIM

The Leeds-based online local business search and directory firm said the board has been concerned for some time that liquidity in its shares has become more and more limited, especially now that nearly 90 per cent of the shares are owned by directors.

Following a review of the costs and benefits associated with the listing, the group said it is no longer in its best interests to stay on AIM.

It added that its small market capitalisation has made it difficult to attract analytical coverage or investor interest and the costs associated with maintaining the listing are disproportionate to its value. It estimates that cancellation should save it around 60,000 a year.

A meeting for shareholders will be held at 9.30am on February 18 at Leeds Bradford airport.

Infoserve said it has seen many of its SME customers go through difficult trading times for the last 12 months. It has seen little improvement in confidence levels, even from business sectors that are experiencing growth.

Last week Infoserve warned that its annual results would be below previous expectations. The group said the severe weather in December resulted in reduced revenues of around 60,000.

It said that it was unlikely that this trading shortfall will be recovered over the remaining three months of the financial year.