Leeds digital agency Fuse8 is to delist from AIM after the departure of former CEO Nigel Hunter from the agency last week.
The Leeds digital agency had previously said it was to consider its future after it was revealed that its trading figures were not as previously expected, and is scheduled to complete the delisting process on 12 November, having only been admitted last July.
It had also admitted that it may consider a sale of the operating group as a possible solution, alongside delisting.
Hunter is understood to have been relieved of his position after the agency revealed that he had failed to provide an updated review of its performance. He then offered his resignation, which was not accepted, with an internal investigation said to have begun following the discovery of ‘other issues’ that it has failed to disclose.
“This will be very disappointing news for shareholders and for the dedicated and hardworking employees of the Company as new business activity is strong and the Company has a solid team of skilled staff who are delivering great work to their clients,” said a company statement at the time of the initial announcement.
“In light of the above it appears that whilst the original strategy set out on the Company's admission to AIM remains sound, these operational issues mean it is now unlikely that the Company's plans will be fulfilled in the short to medium term. Therefore the non-executive directors are now considering what course of action is in the best interests of shareholders. A full range of options are being considered."
With the announcement that it will delist, the company has said that it performed ‘satisfactorily’ in the 12 months until March 2011, increasing both sales and profits, but that on the 5 September it was forced to issue a profits warning when it was apparent that it would not achieve its market forecast for March 2012.
The board has agreed that the best operating strategy for the company will be to continue off-market and consider the best interests of the company and its shareholders.