News blog
Global Brands
- BY: Andrew Hore |
- POSTED: 01/12/2011 |
After just over six years on Aim, during which time it has failed to get anywhere near to making profit, Global Brands says that it wants to leave.
The holder of the Domino’s Pizza franchise for Switzerland raised £2.8m net at 185p a share when it joined Aim hoping to repeat the success of its UK counterpart. Unsurprisingly, the news of the proposed cancellation has knocked 0.72p off the share price taking it to 0.4p and valuing the company at £820,000. Even before the fall, Global Brands was valued at less than it raised in September 2005.
Management admits that profitability is still a long way into the future. Global Brands could not raise the finance to take on the Austrian franchise, which would have at least given the business greater scale. The company still has nowhere near the 23 outlets that it expected to have open by the end of 2008.
Investors have quite clearly lost patience with Global Brands, which has raised additional money since it joined Aim but could not raise a suficient amount for its Austrian requirements earlier this year.
Shareholders an vote on the cancellation at a general meeting on 21 December. Former Portsmouth Football Club owner Alexandre Gaydamak is voting his 41.5% stake in favour of the proposal.
Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFNovember2011_26.pdf
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