The Works shareholders have voted to transfer retailer’s shares from the main market of London’s Stock Exchange to its sub-market AIM in a bid to reduce costs.
In a shareholder general meeting on 4 April, results of the poll found 99.7% of shareholders agreed to move to the smaller market.
The specialist retailer, which first listed on the stock exchange in July 2018, noted its poor valuation, financial cost and regulatory burden of being on the main market as reasons for the change and said “that AIM is a more appropriate”.
In a statement to the stock exchange, the business said its last day of dealings on the main market will be 2 May and that cancellation of the shares is “expected to take effect” on 3 May – when it also expects to start dealing in ordinary shares.
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On the proposed move, last month The Works chair Carolyn Bradley said: “Our proposed move to AIM follows months of careful consideration. We believe AIM to be a more appropriate market for The Works, partly due to our current size but also because of the efficiencies to be gained when compared to the Main Market’s increasing cost and regulatory requirements.
“Many of our major shareholders are supportive of the move and we are optimistic that the expected cost savings and access to alternative groups of investors should help to increase shareholder value.”
The news comes after the business posted widening pre-tax losses in January, as it warned of the potential impact of ongoing supply chain disruptions on its outlook.
The value retailer reported an adjusted pre-tax loss of £7.8m for the 26 weeks ending October 29.
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