Innovise plots AIM withdrawal
Directors of Innovise, the Brierley Hill-based software solutions provider, have written to shareholders requesting the company be withdrawn from trading on AIM. The move comes as the company revealed a turnover rise to more than £10m for its last six months.
The Innovise board said that following "a detailed cost-benefit analysis", it was proposing to cancel the company's admission to AIM.
In a statement, the Innovise board said it would suggest to shareholders later this month that the business remain a public company but discontinue its placing.
The board said the costs associated with maintaining the AIM listing could be "better deployed as additional working capital in the business". It estimated that the company's listing cost more than £100,000 over the last financial year.
Time spent by senior executive's regarding AIM matters was also cited as a reason for withdrawing from the market.
Innovise added that the "relative lack of liquidity means that opportunities to use shares of the company as consideration for acquisitions are very limited".
The last time Innovise used its shares to fund an acquisition was in 2009.
Shareholders will be asked to vote on the bid at a general meeting which will be held later this month.
In a statement, Innovise's directors said: "The principal reasons for seeking admission to trading on AIM were to support the company's growth strategy by providing access to capital and enabling it to use shares as consideration for acquisitions.
"In arriving at the conclusion that cancellation would be in the best interests of the company and shareholders at this time, the directors took account of many factors."
Innovise also released its results for the six months to 31 March 2011. The company said turnover had grown from £7.9m in the first half of 2010 to £10.1m.
Turnover increased by more than 25 per cent compared with the first half of 2010.
Adjusted operating profit rose from £574,000 in the previous first half to £626,000.
Over the six-month timeframe, the company completed the acquisitions of Expolink Europe's software division and intellectual property assets of Pivetal.
