After trading on London’s Alternative Investment Market for 12 years, Brighton Pier Group has announced its intention to delist, with the operator looking to enhance flexibility and expedite decision-making as it navigates challenging waters.

Brighton Pier Group has declared its plans to delist from London’s Alternative Investment Market (AIM) and transition to a private company.

The announcement led to a slip in the company’s shares, which fell by nearly 60 percent on 2 April. The company cited several factors influencing the move, including annual costs of £250,000 to £300,000 associated with being listed, limited share liquidity, price volatility, and changes in the small-cap market since its 2013 flotation. The board believes that delisting at the “earliest opportunity” aligns with the “best interests of the company and the shareholders as a whole.”

Shareholders are scheduled to vote on the proposal at a general meeting on 22 April. If approved, the delisting is expected to take effect on 2 May. This move reflects a broader trend, as AIM has experienced a series of company withdrawals in recent years, with 92 firms exiting the market last year alone. 

Luke Johnson, chairman of Brighton Pier Group, emphasised that the decision is aimed at enhancing flexibility and expediting decision-making processes. The company has faced persistent challenging trading conditions, impacted by factors such as the Covid-19 pandemic, unfavourable weather during peak summer periods, and significant budget increases in National Insurance. In response to these challenges, Brighton Pier Group has focused on cost savings, disposing of underperforming assets, and maintaining a healthy balance sheet, but this has limited its ability to invest in business growth. 

The proposed delisting follows the introduction of a £2 entry fee on Brighton Pier for non-residents over the summer season, with the operator using all the tools at its disposal to navigate towards long-term sustainability in a complex trading environment.