Windows Smartphone Manufacturer to Delist from London Stock Exchange
UK-listed Dubai-based Windows smartphone manufacturer, i-mate has reported sales for the six-month ended of September of $20.6 million compared to $46.2 million for the same time last year. This resulted in an estimated operating loss of $10.8 million loss compared to $29.4 million loss for the same time last year.
The company has cash amounting to $11.2 million and stock at $9.1 million with debtors of $3.9 million and creditors of $2.6 million. As stated in the year end results on 29 September the last 2 months have seen global handheld sales drop considerably and this trend is looking set to continue.
Earlier this year, the company blamed Qualcomm for delays in providing chipsets, leading to problems with the launch of several smartphones in the US market.
"Although we have devices which are not dependent on this chipset, it has a significant impact on the range of product we have to sell," Chief Executive Officer Jim Morrison said in a statement at the time. The shortage affected two of the seven Windows Mobile based models it sells.
The company has now decided to de-list its shares from London's Alternative Investment Market (AIM) stock market and will hold a shareholder vote next month. As the CEO, Jim Morrison owns the majority of the company's shares - the resolution is certain to be passed. The delisting should save the company some US$2 million a year in stock-market costs.
Jim Morrison commented “It was made quite clear at the time of our preliminary results last month that the economics and business benefits of being a quoted Company were becoming increasing unclear. Our business and indeed the market continue to weaken as global consumer confidence slides. I fully expect i-mate to be a private company within 60 days.”
If the resolution is passed the Company’s non-executive chairman, Bernard Cragg and non-executive director, Bill Gorjance, will resign and Jim Morrison will take on the role of Chairman and Chief Executive Officer.
