Yujin, listed in 2009 by way of introduction, is now seeking shareholders to back the delisting at a meeting scheduled on 2 May.
“The board believes that the company's share price does not reflect the value of the underlying business and that the company is unlikely to be able to raise the funds required to develop its current and planned activities through a new share issue,” Yujin said in a statement.
It further stated that “the costs associated with maintaining a listing on AIM are now disproportionate to value provided by the listing, and management expects savings arising from the delisting will amount to approximately ₤100,000 ($152,000) per annum.”
Yujin held the view that it can continue to deliver good performance subject to a successful renewal and repositioning of its fleet growth in both turnover and profitability and increase shareholder value over the next three to five years.
The company's consolidated net revenue in 2011 improved to $18m compared to $15.6m in 2010, while operating profit dropped to $1.2m in 2011 from $1.8m in 2010.
Yujin owns and operates a fleet of five vessels with a total tonnage of 22,401 dwt in the Asia Pacific region. It also provides logistics and ship management services to customers in the chemical and oil industry in the region.
Yujin could leave the exchange on 17 May.