Scholium Group PLC on Thursday said it plans to delist to cut costs as its first-half earnings increased on boosted book and art sales.

The London-based rare books, arts and collectibles firm said cancellation of the admission of its shares on AIM will occur on January 6, subject to approval at a general meeting on December 18, after directors unanimously recommended that shareholders vote in favour of cancellation.

The company said its consistently low share price, at a discount of 52% to net asset value per share at the last close, has ‘significantly hampered the ability of the group to grow by acquisition’.

It said over the last 30 months the mid-price of each ordinary share has not exceeded 45.00 pence. Net asset value per share was up 4.9% in the first-half to 74.60 pence from 71.10 pence year-on-year.

Scholium said it would ‘expect annual savings in excess of £100,000’ from the move. It said cancellation would have increased pretax profit in the last financial year by at least 25%.

The announcement came alongside first-half earnings results which showed continued growth. Revenue increased by 30% in the six months to the end of September to £5.0 million from £3.8 million year-on-year.

Pretax profit multiplied to £167,000 from £43,000. The company said this was also impaired by a £54,000 exceptional cost as the company moved to a new flagship property for books and art on Bond Street in London.

Administrative costs increased by 24% to £1.5 million from £1.2 million.

The company said it continues to focus on it two profitable businesses, rare books and modern prints, and it has ‘cautious optimism’ for the second half of the year.

Chair David Harland said: ‘We are very pleased with the performance of the group in recording its seventh consecutive profitable half-year period, a period that included the transition to our new single flagship property in Bond Street for both books and art which understandably created the exceptional costs incurred in the six month period. The ongoing difficult geopolitical situation naturally presents a difficult environment in which to plan but we are pleased with the ongoing sales at the new property and remain positive about the coming six-month period.

‘We are announcing immediately after these results a proposal to seek shareholder authority to cancel the admission of our shares to AIM. The value attributed to our shares by the market, relative to the underlying net asset value, has made it difficult to benefit from being quoted, and the board feels the costs of maintaining that quotation are no longer justified,’ he said.

Scholium shares were down 17% to 30.00 pence each in London on Thursday afternoon.

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