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The Works has announced that its shareholders voted to transfer shares from the main market of London’s Stock Exchange to its sub-market AIM, as a cost-reducing measure.
This latest move was the outcome of the retailer’s latest AGM that was held yesterday (4 April). Almost all shareholders – 99.7% – agreed to move to the smaller market.
According to the Works, which first listed on the stock exchange in July 2018, has faced poor valuations, and financial costs and regulatory burdens during its time on the main market.
The retailer reported an adjusted pre-tax loss of £7.8m for the 26 weeks ending 29 October, and it also warned of the potential impact of ongoing supply chain disruptions on its outlook.
The change to AIM was said to be “more appropriate”.
In a statement to the stock exchange, The Works reported its last day of dealings will be 2 May and that cancellation of the shares is expected to take effect on 3 May, when it also expects to start dealing in ordinary shares.
Carolyn Bradley, chair of The Works, said: “Our proposed move to AIM follows months of careful consideration. We believe AIM to be a more appropriate market for The Works, partly due to our current size but also because of the efficiencies to be gained when compared to the Main Market’s increasing cost and regulatory requirements.
“Many of our major shareholders are supportive of the move and we are optimistic that the expected cost savings and access to alternative groups of investors should help to increase shareholder value.”
