A Greater Manchester industrial chain manufacturer has announced it is moving to AIM from the main market.
Renold said the move would help with its long-term strategic plan.
The firm said it has been implementing a strategic plan which will focus on a number of initiatives including acquisitions.
The board is proposing to cancel the listing of the company’s ordinary shares of 5p each from the premium segment of the Official List of the UK Listing Authority and to cancel trading on the main market of the Stock Exchange.
It will apply for the admission of the ordinary shares to trading on AIM.
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In a statement this morning, the Manchester headquartered group said: “The board considers that it is in the company’s best interests that the entire issued share capital of the company is traded on the same market.
“In the event that the ordinary share cancellation does not occur and the ordinary share admission does not become effective the company intends to withdraw its cancellation request in respect of the preference stock.
“The board has been implementing a strategic plan which continues to focus on a number of initiatives, including acquisitions.
“Having considered what the most appropriate trading platform for the company’s ordinary shares and preference stock on an ongoing basis would be, the Board has concluded that a move to AIM would be in the best interests of the company, shareholders and preference shareholders.”
A general meeting of shareholders is being held next month to seek approval for the move.
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The news comes as Renold revealed group revenues for the year to March 31 have grown by 5.7 per cent and, on an underlying basis, by 6.1 per cent compared to the prior year.
However, net debt widened to £29.8m compared to £24.3m in 2018. Renold said this reflected a year of investment, particularly in the new Chinese factory.
CEO Robert Purcell said: "Our commercial initiatives are a successful element of the strategy we are implementing and they provide the platform for continuing momentum into the new financial year."
