Former co-op to transfer listing
The company said yesterday it had decided the Irish Enterprise Exchange (IEX) was a more appropriate market, and giving up its full listing would save “significant” costs.
A statement to the stock exchange said: “The regulatory regime for companies is continually becoming more demanding and therefore more costly for the company
“Overall the regulatory regime to which IEX companies are subject is better suited to companies of our size, giving us the ability to undertake transactions and meet the ongoing requirements of a quoted company, subject to the IEX rules, more quickly and in a more cost-effective manner than on the Official List of the Irish Stock Exchange.”
The company recently gave a profit warning, blaming tough trading conditions. Pre-tax profits fell from €4.5 million in 2003 to €2 million last year. But it remains upbeat about its future and promised better times ahead.
“While in recent times, Donegal Creameries has experienced difficulties in some of its businesses, nevertheless, as stated by our new managing director, Ian Ireland, at our recent AGM, we plan to explore new investment opportunities which will permit sustainable profitable growth in the company.
“In addition, while this exploration is ongoing, management will focus on improving the performance of existing business areas.”
Donegal will become the eleventh member of the IEX, set up in May as Dublin’s answer to London’s Alternative Investment Market for small and medium-sized companies.
Shareholders will be asked to vote on the proposed switch at an extraordinary general meeting in Letterkenny early next month. The move will take place, if approved, with effect from September 30.
The IEX initially kicked off with eight companies from other exchanges. It has since attracted FitzWilliam Capital, a mobile communications company, and mining firm Lapp Plats.
