Brighton Pier shares tumble as it plans to delist from AIM

(Alliance News) - Brighton Pier Group PLC on Wednesday proposed the delisting of its shares from London's junior market, becoming the latest firm to protest the cost and regulatory burden associated with a quotation.

The owner of the Brighton Palace Pier said the intention to quit the London Stock Exchange follows a probe by management assessing the benefits and drawbacks of retaining its AIM listing. Ultimately, it concluded that a proposed cancellation of its shares and re-registration as a private company would be in the best interests of the firm and its holders.

Its shares were down 57% at 7.38 pence on Wednesday morning in London.

Brighton Pier's plans make it the latest in a line of firms unsatisfied with a London listing, with model railway maker Hornby PLC calling an end to 30 years as a public company last month.

Brighton Pier attributed its decision to a mix of factors, including the cost and regulatory burden of its listing, a lack of liquidity, market volatility and challenges related to its position as a micro-cap stock.

It noted that a move off the market would "materially reduce" its recurring administrative and adviser costs by between GBP250,000 and GBP300,000 per year.

It added that taking the company private would provide it with more strategic flexibility and allow it to refinance its bank debt with lower professional fees than if it were listed.

Shareholders will get to vote on the proposed delisting at a general meeting on April 22, and if approved, Brighton Pier anticipates the cancellation of its shares becoming effective on May 2.

It said it has made arrangements for the trading of its shares on the JP Jenkins matched bargain facility following cancellation.

Brighton Pier said its results for the financial year ended December 29 are in line with current market expectations, with recent sales having been lifted by warm weather during March.

It reported sales of GBP4.2 million for the first 12 weeks of its current financial year, down by GBP100,000 from a year prior, said the firm.

However, owing to the warm weather and the introduction of a higher GBP2 admission charge for non-residents, total sales at the Pier improved to GBP1.8 million from GBP1.7 million.

By contrast, it noted that its Bars and Golf divisions had experienced a challenging start as total net sales were down to GBP1.0 million and GBP1.4 million, respectively, from GBP1.1 million and GBP1.5 million.

By Christopher Ward, Alliance News reporter

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