Resolute Mining Regulatory News (RSG)

30 Jun 2005 07:00

Reliance Security Group PLC30 June 2005 Reliance Security Group plc ("Reliance" or the "Company") De-listing from the Official List and transfer of trading to AIM Introduction The board of Reliance announces today proposals to de-list the Company'sordinary shares from the Official List of the UK Listing Authority and totransfer trading to AIM. Reliance is an established market leader in the provision of contract security,electronic surveillance, facilities management, support services and businessprocess outsourcing, employing over 12,000 people from a network of officesthroughout the United Kingdom. Background Reliance joined the Unlisted Securities Market of the London Stock Exchange inMarch 1987. It moved to the Official List in September 1996 at a time when therewas no other appropriate market following the decision to close the UnlistedSecurities Market at the end of that year. Since then, the regulatory demands ofthe Official List have become increasingly burdensome, particularly in recentyears, and the cost of compliance has escalated. Furthermore on the OfficialList, companies of Reliance's size can struggle to attract the attention ofinvestors and the research analyst community. The directors, therefore, feel that the Official List is no longercost-effective for the Company, particularly given Reliance's small free floatand low trading volumes. The directors also believe that AIM would be a morenatural home for Reliance alongside similarly sized companies, in a simplifiedregulatory environment. The Company remains committed to continuing to grow and develop the business forthe future and to maintaining high standards of corporate governance. It hasachieved an average annual compound growth rate in pre-exceptional earnings pershare of 18.5% over the last five financial years. Further information on AIM AIM was launched by the London Stock Exchange in 1995. The obligations of an AIMcompany are similar to those of a company on the Official List with certainexceptions. The significant ones are a reduction in the burden (and, therefore,cost) of compliance and the removal of any requirement to maintain a fixedpercentage of shares in public hands (currently 25% of the issued share capitalunder the Official List). Since AIM opened in 1995, more than 1,600 companies have been admitted and morethan £15 billion has been raised in total. Liquidity on AIM is currently provided by market makers who are member firms ofthe London Stock Exchange who are obliged to quote a price in shares between8.00 a.m. and 4.30 p.m. on business days. The directors believe that AIM hasdemonstrated that it can provide a liquid trading platform for shares. Companies whose shares trade on AIM are also treated as unlisted for thepurposes of certain areas of UK taxation, which can confer significantadvantages for private shareholders, primarily in the context of inheritance andcapital gains tax. Transfer of trading to AIM The Company will today give notice to cancel the listing of its ordinary shareson the Official List and will apply to the London Stock Exchange for admissionto AIM. It is anticipated that the listing and trading of the ordinary shares onthe Official List will cease at close of business on 3 August 2005 being notless than 20 business days from today's date. Admission is expected to takeplace and dealings are expected to commence on AIM on 4 August 2005. Enquiries: Brian Kingham 020 7730 9716Chairman Neil French 01895 205002Group Finance Director This information is provided by RNS The company news service from the London Stock Exchange