Struggling claims specialist Aquilo is to de-list from the stock market and has put its IT claims handling business into administration.
The decision to de-list from AIM was taken at the company’s annual meeting this week.
Aquilo said the benefits of listing on AIM no longer outweighed the substantial costs involved.
The company said in a statement: “The directors consider that maintaining the quote for the shares no longer serves a useful function in terms of access to capital or the ability to use the shares of the company to effect acquisitions, given the current circumstance of the group.
“To the extent that any further changes in the structure and funding of the company are required, consequent on its new strategy, the board believes these would be materially easier to carry out as an unquoted company.”
The move came days after Aquilo placed its IT equipment claims handling and replacement operation, IT Solutions, into administration.
KPMG has been appointed as the administrator.
This followed a failed attempt to sell IT Solutions and Aquilo’s general house-hold claims handling business, ABS.
An expression of interest had been made but the third party, reported to be household claims outsourcer Powerplay, pulled out.
Aquilo will now focus on its household repair and claims handling operation, AIRS.
Aquilo has seen its share price tumble from around 80p earlier this year to 3.5p currently amid continued losses, restructuring and a refinancing.
It has failed to turn a profit in the past four years. Latest results for 2006 showed the company’s operating loss more than doubled to £4.5m.
Aquilo’s chief executive Clive Nicholls said in June (News, 28 June) that the share price was not an accurate reflection of the company, pointing to the company’s refinancing in January, when over £4m was raised and two new investors, Artemis and Key IP came on board.
He said the AIRS business, which was launched in 2006, was profitable.
Aquilo would not comment further. Trading will cease on 14 September.
