POUNDSTRETCHER owner Instore is urging shareholders to back plans to leave the stock market.
The Huddersfield-based firm unveiled plans to cancel its shares on the AIM market as it reported half-year pre-tax losses of £3.7m compared with a deficit of £7.1m for the same period last year.
Instore, which has its headquarters and distribution base at Trident Business Park, off Leeds Road, Deighton, said the move would mean further integration with Crown Crest, a Leicester-based cash-and-carry firm which is majority owned by Instore's chief executive Aziz Tayub.
Shareholders will be asked to vote on the proposal at a meeting on November 23 with the cancellation expected to take effect on December 22.
In a statement, chairman John Jackson said Crown Crest’s investment in the company – including providing loan and credit facilities and assisting through initiatives such as joint buying and logistical support – continued to be of vital importance.
He added: “While such assistance is provided always on a commercial and ‘arm’s length’ basis, these are avenues of finance and credit that may well not have been available to the company at all from traditional sources.
“The board believes that even when general economic conditions improve, the company’s substantial dependence on the Crown Crest Group will continue and that the company’s interests will be best served by some or all of the company’s indebtedness to Crown Crest being converted into share capital.
“ If approved, this would decrease further the proportion of the company’s shares in public hands and bring into question the continuing appropriateness of maintaining the company’s listing.”
Mr Jackson said the board unanimously believes that de-listing was in the best interests of shareholders and was recommending that they vote in favour.