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TheWorks.co.uk PLC on Tuesday announced plans to cease trading on London’s Main Market and apply for admission to the ‘more appropriate’ AIM. Shares in The Works were up 2.6% at 26.00 pence on Tuesday afternoon in London. The Birmingham, England-based retailer also said it will extend its current financial year by one week, with the 53-week period now ending on May 5. April 30 will remain its accounting reference date. The Works, which sells books, arts and craft supplies, stationery, toys and games, said it is proposing to cancel shares and cease trading on the London Stock Exchange’s Main Market. It will then apply for the admission of its shares to trading on AIM, assuming that shareholders approve the relevant resolutions at a general meeting scheduled for April 4. ‘Our proposed move to AIM follows months of careful consideration,’ explained Chair Carolyn Bradley. ‘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.’ Elaborating on its decision, The Works said the Main Market’s cost and regulatory requirements have become ‘disproportionately burdensome’. It noted that due to its relatively low market capitalisation, its shares are not included in index tracker funds, and it does not expect to benefit from this in the future. By contrast, The Works can see ‘no practical disadvantages’ to listing on AIM. It said the ‘significant cost [savings]’ it expects to incur should include reduced audit fees, as it would no longer be classified as a public interest entity and could have access to a broader range of auditing firms. Additionally, The Works said various potential tax benefits could make its shares more attractive to AIM-specific funds. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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