Cyber security firm Smarttech247 to delist from AIM

(Sharecast News) - Cyber security firm Smarttech247 said on Friday that it plans to delist from AIM as it warned that full-year operating profit would be below market guidance following slightly softer-than-expected margins.

In an update for the year to the end of July, Smarttech247 said it was in the best interests of shareholders and the company as a whole to delist.

Following careful consideration of the benefits and drawbacks of maintaining a public quotation, the company concluded that is significantly undervalued on public markets, "despite its year-on-year revenue growth, technological advancement and strategic progress".

It said a delisting should provide greater strategic flexibility as it looks to grow "in what remains a competitive sector, reduce the costs and regulatory burdens associated with maintaining a public quotation, and allow management to focus more resources on driving long-term growth".

The delisting will need to be approved by shareholders at a general meeting.

Smarttech247 said that following a number of contract wins, it expects revenue for the year to be ahead of market guidance.

However, softer margins mean that trading EBITDA and operating profit are set to be below current market guidance for the period.

"If the profit from the sale of the company's stake in Getvisibility were included, overall EBITDA would be more in line with market guidance," it said.

Chief executive Raluca Saceanu said: "We are immensely proud of the progress we are making. Revenues are ahead of expectations, our pipeline has never been stronger, and the contracts we have secured put us in an excellent position to deliver sustainable growth.

"Despite this momentum and the clear opportunities ahead, we believe the company is better positioned to achieve its ambitions as a private business. The potential delisting will allow us to focus more resources on our strategy, enhance our flexibility, and continue building long-term value for our shareholders."

At 0940 BST, the shares were down 63.5% at 3.10p.