The Works intends to move its shares off the London Stock Exchange’s main market and list on AIM, six years since its IPO.
The value books and arts and crafts specialist cited its lowly valuation, as well as the financial cost and regulatory burden of being on the main market, for its decision.
The Works floated in 2018 – when it was valued at around £100m. However, it has since found business tough. The retailer reported an interim loss in January when it said its focus would be on “cost reduction, rebuilding margin and profitability, and conserving cash”. Its market capitalisation stood at £15.8m on March 19, 2024.
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.”
A shareholder general meetign will be held on April 4 and, assuming the move wins approval, The Works’ shares will begin trading on AIM on May 3.
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