LONDON (Alliance News) - Imaging and 3D services company DDD Group PLC on Monday proposed cancelling its listing on AIM as the company's pretax loss widened on a big fall in revenue.
DDD said shareholders will vote on its proposed AIM cancellation on June 29 at the company's annual general meeting.
Chief Executive Chris Yewdall said the costs related to its listing on AIM had become "excessive" for a company of DDD's size and said the listing does not help the group generate any more revenue or profit.
"The board's view is that the company is not receiving the benefits for which the AIM listing was originally sought, nor is there any possible chance of the situation changing in the foreseeable future," he said.
The announcement came as DDD said its pretax loss for the year to the end of December was USD3.1 million, compared to USD1.7 million a year earlier, caused primarily by revenue declining to USD706,000 from USD2.5 million.
The fall in revenue was due to a fall in the 3D television market amid a transition for DDD's TriDef 3D conversion technology from HDTVs to UHD/4K televisions, which occurred at the end of the first quarter.
"During the transition from stereo 3D products to 2D solutions the company continues to carefully manage costs and expenses to maximise the working capital as the company returns to break-even. Despite the careful cost control, the company has seen a decline in its turnover in the last two years, making it much harder to generate profits at the present time," Yewdall added.
"This has caused a substantial price decrease and reduction in the liquidity of the stock, making it difficult for the company to raise sufficient capital to fully fund its growth plans for products and applications beyond the 3D market," he added.
DDD shares sunk further on Monday morning, down 57% to 0.65 pence.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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