28th Aug 2026 17:26
(Alliance News) - Sutton Harbour Group PLC on Friday revealed plans to exit public trading, following a strategic review.
The Plymouth, England-based company is focused on waterfront regeneration projects and real estate. It owns and operates Sutton Harbour.
It said on Friday that it has started the process of selling "material portions of its asset portfolio" to cut back debt and generate shareholder value, which it says is not evident in its current share price.
Sutton Harbour shares fell 18% to 3.50 pence on Friday afternoon in London, for a market capitalisation of GBP5.0 million. The stock has slumped 42% over the past year.
Beyond disposals, the company is embarking on a cost-cutting programme, hence the decision to delist and re-register as a private firm.
Sutton Harbour's controlling shareholder, FB Investors LLP, and the two largest minority shareholders, Crystal Amber Fund Ltd and Rotolok Holdings Ltd support the plan, it noted.
The company flagged several headwinds since the capital injection from FB Investors in 2018, including "high interest rates, COVID-19, post-Brexit supply chain collapses, energy cost increases, and inflation, all of which have resulted in the well-documented structural weakness of the UK economy".
It also pointed to stricter building regulations, which it blames for slower property development, ultimately making the company's vision "uneconomic in the current cycle".
"The long-term prospects for Plymouth are attractive in the context of the Ministry of Defence commitment to invest in Devonport over 10 years to support and maintain the Royal Navy's submarine facilities. In the medium and short term, however, the board believes that the company will be unable to materially reduce its indebtedness through the sale of developments and faces a rising cost of capital and other expenses," Sutton Harbour said.
It still plans to refinance its secured senior debt. Its current facility with National Westminster Bank expires on December 30, and after disposals, it will seek out replacement funding to stay afloat after 2026.
As of July 31, senior debt stood at GBP17.4 million, with net debt totalling GBP26.0 million.
It noted that the process of realising value for shareholders via disposals is "unlikely to complete in the short term".
It sees an exit from public markets as being in its best interests, and will seek the required 75% approval to delist from shareholders at a general meeting on September 22. Cancellation is expected to take effect on September 30. The plan has unanimous backing from Sutton Harbour's board.
Provided the cancellation proceeds, Joshua Mishkin will join the board as chief operating officer to assist with the process of transitioning to a private company.
By Holly Munks, Alliance News reporter
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