'No longer justified': CPP Group considers delisting months after closure of Leeds office
Assistance and insurance products company CPP Group is planning to delist and go private – months after closing its Leeds office in a cost-reduction programme.
The company said no final decision has been made but it is considering delisting from AIM.
A spokesperson said: “The board recognises the challenges faced by the company in the context of the current UK public market environment for small-cap companies such as CPP, including persistent undervaluation, limited liquidity, and the ongoing costs and administrative burden associated with maintaining a public listing.
“The board believes that benefits of remaining listed may no longer justify these costs for a business of the group's current size, and that the group's resources could be more effectively allocated.
"The board believes that a transition to a private company structure could further reduce operational expenses, provide greater strategic flexibility, and broaden access to capital should it be required in the future on more favourable terms.
"In light of these considerations, the board is actively pursuing and carefully assessing a range of strategic options to maximise long-term shareholder value. These include, but are not limited to, a potential cancellation of the admission of the company's ordinary shares to trading on AIM, subject to shareholder consultation and approval.”