(Alliance News) - Fulcrum Utility Services Ltd on Monday said it intends to cancel the admission of its shares to AIM as part of structural changes meant to return it to profitability.
The stock in London plummeted 64% to 0.30 pence on Monday morning.
The Sheffield, England-based provider of utility infrastructure services said it has proposed to de-list from AIM, having reviewed the advantages and disadvantages of being listed on the London exchange.
The disadvantages, it said, included its limited prospects of raising additional equity financing on AIM, and that it had so far experienced limited trading in its shares there. Fulcrum also cited the "legal and regulatory burden" associated with the listing, and the "significant cost" associated with maintaining it.
Shareholders will be invited to consider the proposal at a general meeting scheduled for September 26. Fulcrum said that as of Monday, shareholders representing about 57% of its issued share capital had submitted irrevocable undertakings to vote in favour.
Also on Monday, Fulcrum said its pretax loss widened to GBP25.7 million in the year that ended March 31, compared with GBP14.2 million the previous year.
Earnings before interest, taxes, depreciation and amortisation swung to a GBP6.2 million loss from a GBP500,000 profit and basic loss per share widened to 6.3p from 5.2p, while adjusted loss widened to 3p from 1.4p.
Revenue decreased 18% to GBP50.6 million from GBP61.8 million, and infrastructure revenue decreased 19% to GBP46.4 million from GBP57.6 million.
Fulcrum said its Ebitda was affected by a diluted gross margin, "particularly as cost of materials were impacted by inflationary effects," and "more challenging" trading conditions caused by the ongoing turbulence in the energy sector.
Fulcrum said it would not recommend a dividend payment for the year, but will continue to keep its dividend policy under review.
In August 2022, Fulcrum said its pretax loss had widened despite revenue increasing 31%, attributing this to "significant" challenges including the impact of the UK energy crisis.
"Our FY23 results reflect the legacy issues and the difficult conditions that the group has operated in," said Interim Chief Executive Officer Lindsay Austin, "however we are now in a stronger position and laser focused on our path back to profitability as we continue to make improvements at pace."
"Turning the group's performance around has been a challenging task and is ongoing, but we are making good progress, at pace," explained Non-Executive Chair Jennifer Babington, who added that Fulcrum is currently trading in line with expectations.
By Emma Curzon, Alliance News reporter
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