Long Botham Boats Co. Ltd. – the parent company of the Henry VIII’s Pub and Restaurant and owner of Robin Hood through a subsidiary company – has said it will likely delist from the Bermuda Stock Exchange.

The development was revealed in the company’s latest six month report, through June, showing that profits had moved up 23.8 percent to $800,660.

Speaking of its decision to delist after going public on the BSX in February, 1993 Long Botham’s board said it was in the company’s best interest.

“The company has enjoyed a positive association with the Exchange but given we no longer operate a public facility, some of the reasons for being on the Exchange are no longer valid. Further, the disclosure requirements place us at a competitive disadvantage vis-?-vis other food and beverage operators. We have also noted that there is no significant share activity and the Exchange is not our traditional source of capital. Another benefit will be the reduction in audit fees given we are no longer a public company,” a statement read.

It continued: “We must point out that there are certain disadvantages to delisting, most notably, shareholders will lose the benefit of stamp duty exemption on share transfers. Also, shareholders will lose the public market for their securities and the investor protection set out in the Exchange’s listing regulations. However on balance, the Board has determined that the reasons in favour of delisting outweigh those against.”

It is understood that shareholders will have a chance to vote on the development on December 15.

BSX CEO Greg Wojciechowski expressed some concern saying investors have a fundamental right to information on the companies they are investing in, and companies listed on the Exchange are bound to provide the public with certain information.

“We will watch this development with great interest. The BSX has evolved in Bermuda as its founders and regulators felt Bermuda’s retail investing public were entitled to certain fundamental level of rights and protection. We therefore question in this particular case what benefits shareholders will receive when their fundamentals rights are eroded,” Mr. Wojciechowski said.

He continued: “The BSX listing regulations seek to ensure that investors who invest in a company are treated fairly and are informed of key information in respect of the company and their investment.

“The BSX provides a key price discovery mechanism for the market value of the company’s stock and a fair and level playing field for buyers and sellers to come together.”

“This will disappear and no longer be available to shareholders.

“Proper regulation and investment protection mechanisms are a fundamental right of company shareholders and the underpinning of any modern, efficient economy.”

Although the group – which is not an active trader on the BSX, and is not widely held – said it posted higher profits than during the same half-year period in 2003, the group’s board pointed out in a BSX-issued release that the group, which had for the previous ten years run the Horseshoe Bay Beach Concession, would no longer have that revenue after a five-year contract was awarded to another party.

But that loss should, in time, be offset by revenue from the company’s subsidiary, Little John Limited, the owner and operator of the Robin Hood Pub and Restaurant.

The company also clarified that due to changes in accountancy rules, goodwill is no longer depreciated which has had the effect of “artificially” boosting our net profit.

Long Botham added that tourism spending had been inconsistent and the re-opening of the Fairmont Southampton Princess and Wyndham have not generated the anticipated levels of business.

“Nevertheless, we remain optimistic the next year, now that the US election is over, will be a better year.

“In the interim, we are encouraged by the level of local support and consider this a positive sign as we go into the winter months.

“The Pantry has improved 23.5 percent in net profit on last year and remains a constant profit earner.

“As previously mentioned, the Robin Hood business continues to meet expectations and with the emphasis on beverage, is proving to be a welcome complement to the restaurant,” the statement read.