Shares in BNB Recruitment Solutions dived to their all-time low after the company announced plans to delist from the Alternative Investment Market.

The company also intends to separate the recruitment consultancy business, including Norman Broadbent, from its other businesses, which includes advertising firm Barkers.

Unlike most other companies that delist, the move has not been prompted by a takeover. The company has decided that the expense of listing is not justified. Its shares are thinly traded on the exchange. Two "concert parties", consisting partly of BNB directors, between them hold 75.85% of the shares.

Any investor looking to buy or sell shares now has to contact the company secretary, who will match up buyers and sellers.

Finance director Paul Turner told Recruiter: "The amount of shares being traded was tiny."

The company said there had been "limited market appreciation" of its "broad geographical presence and sector coverage within its two business areas".

Turner also pointed to the expense of putting out shareholder circulars for fundraising. He said this was wasted as it was mainly the existing shareholders who were injecting more funds into the company. City institutions had shown little enthusiasm. Such circulars are not needed for unlisted companies.

The company is worth about £11m on the stock exchange, preventing City analysts from showing much interest. The delisting is expected to take effect on 27 February. Other listed recruiters with similar market values may also decide to de-list.

The expense of having non-executive directors is frequently cited as a disadvantage of being a quoted company. But BNB says it will retain one non-exec even after delisting. This is likely to be former Cabinet minister John Redwood, said Turner.

BNB shares were trading as low as 6p after the announcement, less than 5% of the peak in 1999. Last month, BNB appointed Pascal Gueissaz as interim chief executive officer (Recruiter, 24 January). Former executive chairman Simon Grinstead is now back at the company and attending board meetings. He is not expected to resume the role he once occupied.