Cagney Proposes AIM De-listing

UK marketing services group Cagney - which owns consumer behaviour consultancy Tree - is urging its shareholders to approve plans to de-list from the UK's AIM exchange, so that it can focus on its market research and data analysis capabilities.

The firm's management team - led by CEO Steve Mattey - believes that Cagney's future lies in technology-driven MR/data analysis services. The group says that further developing this strategy will require a more flexible approach to investment and performance than is possible on a public market where investors and analysts like to see steady growth.

The firm's shares were originally admitted to trading on the Alternative Investment Market (AIM) in 2006. Having recently undertaken a review of the costs and benefits of AIM trading, Cagney's directors have concluded that this is no longer in the best interests of the company or its shareholders.

Costs for maintaining admission to AIM are substantial, and the management team has distributed a circular to shareholders urging them to agree to the de-listing. Cagney would be following the example of MR group Optimisa which chose to delist from AIM in June.

Around 44% of shares are in the hands of four shareholder managers, which the directors say makes it difficult for anyone wishing to buy a substantial number of shares to do so at a reasonable price.

They also believe that in the current economic environment, it is difficult for any company to raise investment funds, and say that de-listing from AIM will allow Cagney to approach sources of capital that were previously inaccessible due to its status.

Separately, the Board says the group has made a profitable start to the year, and it expects operating profit for the first half of 2009 to show a modest increase on the corresponding figure for 2008.

Earlier in the year, Cagney terminated discussions regarding a possible takeover, three months after the prospect of a deal first emerged.

Web sites: www.cagneyplc.com and www.treelondon.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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