Green light for distie to relist on Alternative Investment Market in September
Distributor Northamber has set the scene for its plans to withdraw from the London Stock Exchange and list on the Alternative Investment Market (AIM) instead in September, following clearance from its shareholders.
The distributor has seen revenues fall over the last few years and said AIM registration would provide a better trading environment. Shareholders green lighted the move, set for 2 September, during a General Meeting of the company held on 31 July.
“The board’s strategy is to continue to develop the core business in the UK whilst aiming to protect margins and existing market position,” the distributor said in its AIM listing announcement. “Where opportunities arise to generate accelerated returns to shareholders, corporate M&A activity will also be considered.”
As reported by ChannelBiz in May, the distributor disclosed a 20 percent revenue drop year-on-year and said a turnaround in its fortunes would “not be immediate”.
Its trading statement at that time said, “Steps are being taken to accelerate this movement, however, it will take some time for the impact to be fully realised.”
Tanking PC sales-price and margin erosion were all blamed for the distie’s financial misfortunes. Northamber also had a number of suppliers severing their links. Fujitsu split with the company in April following a parting of the ways with IBM in January and with Kingston Technology in February.
Northamber signalled its intention to move to AIM last June, saying it was looking for an environment that suited its current size as well as offering it greater flexibility.