Imagesound to de-list from AIM

Imagesound, the AIM-listed supplier of audio visual equipment to the pub trade, has decided to quit the stock market after four years.

The Chesterfield-based group, which supplies sound systems to a number of managed pub chains including Slug & Lettuce and O'Neills, said its share price in recent times had not "reflected the performance or prospects" of the company.

"Despite improvements in the company's trading performance over the last two years, the company's share price on AIM has continued to fall," the group said in a statement.

Subject to approval at the group's AGM on May 14, its shares would cease to trade on AIM on May 22.

Imagesound listed on AIM in August 2004 via a reverse takeover of a cash shell venture at a float price of 20p. Its shares peaked at a little more than 27p in early 2005, but have since sunk to just above six pence.

For the six months to June 30 2007, Imagesound reported turnover down 10.1 per cent to £3.5m, "in line with expectations", and adjusted operating profits of £629,000, up seven per cent.

Derek Mapp, Imagesound's chairman, said a listing on AIM no longer served the interests of shareholders, and that those who wished to would continue to hold an interest in the group after it had de-listed.

"Without being able to use our equity to help grow the company by acquisition, AIM simply adds additional cost and administrative burdens on the business and diverts funds that can be better deployed elsewhere."

Mapp said the group would save around £150,000 a year from the withdrawal from AIM, and would be able to fund its growth through cash reserves and bank financing.