Stock exchange loses another constituent

The Irish Stock Exchange will lose another constituent this week with the departure of SMF Technologies.

The Limerick-based technology group has been forced to surrender its listing on the Developing Companies Market (DCM) following the resignation of its sponsoring broker, Dolmen Securities.

The company said it was not in a position to appoint a replacement. It will retain its listing on London's Alternative Investment Market (AIM).

SMF Technologies has been struggling since the collapse of plans to make an acquisition earlier this year. Managing director Mr John McDonnell said SMF had been unable to get sufficient funding to complete the deal.

He said the failure of the deal had prompted an internal examination of where the company was going overall.

The company's largest shareholder, Mr Martin O'Donoghue, who owns 32.4 per cent of the stock, has subsequently made clear that he cannot continue to underwrite the company. He has been supporting the company with a loan since August 2001.

"We simply could not continue to afford paying advisers in two markets," Mr McDonnell said. "You cut your cloth to fit."

He said there had been relatively little trading in the company's stock in recent years and most of whatever activity there was took place in London.

The exchange has agreed to waive the 20-day notice period normally required for companies delisting from the DCM after the company argued that such a delay would be "seriously detrimental to the company and its shareholders". SMF will cease trading on the DCM at the close of business tomorrow.

The company will shortly issue a circular to shareholders detailing a proposal to extricate the company from its current position.

On May 23rd, it said it was looking at disposing of its trading businesses to avoid becoming insolvent.