Leadership

Boundary Capital seeks to cancel trading on ISE, AIM

30.07.2010
The investment group Boundary Capital has announced it is seeking shareholder approval to cancel its trading facility on the Irish Stock Exchange and London’s AIM, and to change the name of the company to Fleming Capital plc.

It says it is no longer able to meet the ongoing costs arising from being quoted on AIM and the ISE.

Boundary said it had given careful consideration to the decision to cancel its ordinary shares on the two exchanges “as the costs of maintaining a listing are not justified due to the difficult financial position the company is in and particularly given the company's reliance on its bank, Anglo Irish Bank”.

The group, which is headed by financier Niall McFadden, owes Anglo Irish Bank almost €40m. Boundary’s debt facility with Anglo Irish expired on 30 June 2009 and was then extended to 31 December 2009. However, Anglo has not agreed a further extension for the debt facility since 31 December 2009 and Boundary said discussions are still ongoing with the bank in relation to this.

Boundary has had no significant cash inflows since 2008. In 2008, the company recorded a loss after tax of €54.4m arising from the revaluation of its portfolio to €29.2m from €80.4m. In 2009, its portfolio was revalued downwards again to €11.2m.

Boundary’s investments include stakes in the Dublin department store Arnotts, joint control of which was taken over by Anglo Irish Bank and Ulster Bank this week.

Earlier this year, Boundary warned its shareholders that it was “unlikely” they would get any value from the firm’s 28pc stake in Arnotts.