NEWS5 August 2009

Cagney wants AIM de-listing to concentrate on MR

Financials UK

UK— Marketing services group Cagney, the owner of research agency Tree, has written to shareholders asking them to approve the firm’s de-listing from the stock exchange so it can concentrate on developing new market research offerings.

Cagney said that “challenging” stock market conditions, difficulties in financing acquisition opportunities, the costs of being on the Alternative Investment Market (AIM) and limited liquidity in the company’s shares were the main reasons for wanting to de-list.

Another one, Cagney said, was that the management believes the group’s future lies in “technology-driven developments centred on its market research and data analysis capabilities”. The firm said: “Developing this strategy will inevitably require a more flexible approach to investment and performance than is possible on a public market where investors and analysts like to see steady, progressive growth and a steady flow of encouraging news.”

CEO Steve Mattey (pictured) said earlier this year that he wanted to re-align the firm as “a business delivering communications led by insight and technology”

Cagney is writing to shareholders today to notify them that a general meeting will be held on 28 August, where Cagney and its advisers will argue that it is in the “best interests of the company” to withdraw from the AIM. If the proposal is approved, shares would be de-listed on 8 September.

Cagney said that it had made a “profitable” start to the year and expected operating profit for the first half of 2009 to show a modest increase on last year.

Earlier this year talks with an unnamed suitor over a possible takeover of Cagney were terminated.