Trimantium GrowthOps will de-list from the Australian Securities Exchange after seeing its profits and share price plummet over the last year.
The IT services group posted a loss of $43.7 million for the 2020 financial year, an improvement of 30 per cent on 2019’s $65 million loss.
In addition, since July 2019, GrowthOps’ share price has plummeted by 90 per cent, falling from $0.53 to $0.051 per share.
In its announcement, GrowthOps cited the falling share price plus a lack of liquidity as the reasons behind the decision.
In addition, the company said that the high administration costs of being publicly listed were “unsustainable” given its current operations, debt and cash flow.
As reported by ARN, the COVID-19 pandemic hit GrowthOps’ revenue, which declined by 12 per cent to $84.4 million, partly due to two of its key clients exiting the Australian market.
As a result of de-listing, the company hopes to secure more capital investment and have greater flexibility with pursuing mergers and acquisitions.
“The delisting provides the company with an opportunity to continue to expedite its cost improvement programs, along with securing new alternative funding sources to help facilitate and assist in achieving its growth objectives,” CEO Clint Cooper said in a statement.
GrowthOps first began a cost reduction restructure in October 2019, which saw a number of senior leaders exit. Shortly after, Cooper took on the role of managing director and CEO.
Following on from this, GrowthOps faced another hurdle with the collapse of a number of businesses belonging to financial infrastructure and technology provider Sargon, of which its subsidiaries had been key clients.