Shares in UK chipmaker Sondrel (Holdings) PLC plummeted 20% after the company reported lower revenues and increased losses, while also announcing a “transformation plan” that includes delisting from AIM.
In 2023, revenue dropped to £9.4 million from £17.3 million, while operating losses widened to £17.3 million from £5.2 million.
In March, Sondrel secured an £874,600 convertible loan note agreement with Rox Equity Partners to address immediate working capital needs. Later that month, it raised an additional £2 million from Rox through another convertible loan note and completed a £5.6 million equity subscription last month.
With ROX now owning 49% of the voting shares, Sondrel has agreed to a transformation plan that includes CEO Graham Curren transitioning to a non-executive director role and Nigel Vaughan retiring as chairman.
David Mitchard, who was appointed interim CEO in March and later non-executive chairman in June, will also step down as interim CEO. John Chubb has been appointed as CEO designate and chairman.
Chubb is currently serving in the UK Ministry of Defence as the senior responsible officer for core delivery at the Defence Equipment & Support arm. Sondrel described Chubb as a “highly experienced CEO” with extensive experience in IT, communications, energy, and construction sectors in the UK and Europe. He is noted for his expertise in business turnaround, cash development, strategic leadership, and driving growth.
As indicated in May, the company will delist from AIM. The board and ROX have concluded that the costs and complexities of being quoted on AIM do not benefit stakeholders at this stage of the group’s transition.
A proposal to cancel the AIM listing will be put to shareholders, with a trading facility to be provided for those wishing to buy or sell shares on a matched bargain basis. A vote on this proposal will take place at a general meeting in August.
