Specialist recruitment and outsourcing firm Servoca yesterday announced plans to de-list from the London Stock Exchange.

The group will seek shareholder approval in a general meeting in London on June 11, and it expects cancellation of its shares eight days later.

Servoca stated that over the last year its share price performance has been "disappointing" and hasn't been reflecting its improved performance and better market conditions. The group added that its current trading value attributed to the Ordinary Shares has led the Directors to question whether the retention of an AIM listing remains in the best interests of the company.

In its proposed cancellation, Servoca stated, “The directors believe that there are multiple reasons for this under-valuation but, with over 80% of the Ordinary Shares held by current or immediately past members of the Board and their connected parties, specifically include a severe lack of liquidity. This is evidenced by the fact that less than 10% of the Ordinary Shares have been traded in the last two years.”

“In the likely event that the Ordinary Shares remain under-valued, the Directors do not therefore believe it would be in the Company's or the Shareholders' best interests to issue additional Ordinary Shares to fund future growth or as consideration for acquisitions. The Board consider these are among the principal benefits of maintaining the listing on AIM.”

In addition to the above, the Directors of Servoca also believe that the costs of remaining listed on AIM could be better spent within the business.

According to the Directors, delisting will reduce the company's recurring administrative costs by approximately £150,000 per year and that this, together with the end of the share buyback programme, will allow the substantial amount of such expenses to be better spent in running and growing the business in a private capacity.

As for current trading, the Board confirms that underlying trading at the half-year remained consistent with internal expectations with revenues and Adjusted Profit Before Tax in line with prior year. The Board remains of the view that the group's balanced and diversified portfolio will continue to provide growth opportunities.

Servoca set a new 52-week low during today's trading session when it reached 10.00. Over this period, the share price is down -46.60%. At the end of the day, shares were down 21.43% on the day. Based on its current share price the company has a market value of £21.29 million.