18th Jan 2019 08:41
LONDON (Alliance News) - Restaurant owner Richoux Group PLC is to ask shareholders to vote on a move to leave London's AIM market, the company said Friday.
Richoux owns the Richoux, Friendly Phil's, Villagio, and Broadwick restaurant names.
It has called a shareholder votes for February 6, and if passed, the company expects to leave the London junior market on February 15.
Richoux believes the move is "in the best interests of the company and its shareholders as a whole".
Richoux said that, though trading is meeting expectations, it does not expect any long-term meaningful revenue growth under its current model, and existing financiers are "unlikely" to provide material support to change this outlook.
As a result of the lack of likely investment, Richoux believes the costs of being a listed firm do not bring a proportionate benefit.
Further, liquidity is low, with only 1.5% of shares trading during 2018. Shares were untraded Friday, last closing at 7.00 pence each.