Retailer’s move to smaller market aims to reduce costs

  • The Works shareholders vote to transfer shares from the main market of London’s Stock Exchange to AIM
  • 99.7% of shareholders agree to move to the smaller market
  • The Works cites poor valuations, financial costs, and regulatory burdens as reasons for the move
  • The retailer reported an adjusted pre-tax loss of £7.8m for the 26 weeks ending 29 October
  • The Works expects to start dealing in ordinary shares on 3 May

The Works, a retailer listed on the main market of London’s Stock Exchange, has announced that its shareholders have voted to transfer shares to the sub-market AIM. This decision comes as a cost-reducing measure, driven by poor valuations, financial costs, and regulatory burdens. During the retailer’s latest AGM, held on 4 April, almost all shareholders (99.7%) agreed to the move. The Works reported an adjusted pre-tax loss of £7.8m for the 26 weeks ending 29 October and expressed concerns about ongoing supply chain disruptions. The change to AIM is expected to be more appropriate for the company. The last day of dealings will be 2 May, with the cancellation of shares taking effect on 3 May, when the retailer also expects to start dealing in ordinary shares.

Factuality Level: 8
Factuality Justification: The article provides a factual account of The Works’ decision to transfer shares from the main market of London’s Stock Exchange to AIM, citing reasons such as cost reduction, poor valuations, financial costs, and regulatory burdens. It includes quotes from the company’s chair and details about the shareholders’ agreement. There are no obvious signs of bias, sensationalism, or inaccuracies in the reporting.
Noise Level: 3
Noise Justification: The article provides relevant information about The Works’ decision to transfer shares from the main market to AIM, including reasons for the move, shareholder approval, financial challenges faced, and potential impact of supply chain disruptions. It stays on topic and supports its claims with quotes from the company’s chair. However, the article lacks in-depth analysis of the long-term implications of the move or exploration of broader trends in the retail industry.
Financial Relevance: Yes
Financial Markets Impacted: London Stock Exchange
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the decision of The Works to transfer shares from the main market of London’s Stock Exchange to its sub-market AIM as a cost-reducing measure. This decision does not involve any extreme event or have a significant impact on financial markets or companies.

Reported publicly: www.retailsector.co.uk