Shares in Sorted Group have slid as much as 75% in the year since the company first joined the London Stock Exchange, making the company one of the worst performers in the AIM market.
The logistics and delivery technology business was first listed in February 2024, via a reverse takeover of a similar struggling business known as Location Sciences Group.
The transaction involved Location Services acquiring the company for £1, and in doing so, inheriting several millions of pounds of Sorted debt.
That was followed by the departure of chief executive Carmen Carey with immediate effect, before layoffs affecting more than 20% of the staff, including back-office costs related to legal, HR, and finance functions, resulting in a total people cost reduction of approximately £1.2m.
The company then closed its London office and undertook a “resizing” of its Manchester office which it said would deliver a six-figure saving.
In a trading update in August, executive chairman Simon Wilkinson said he was “confident that the steps we have taken will not only strengthen our market position but also lay a solid foundation for sustained growth and success.”
“We have reduced back-office costs related to legal, HR, and finance functions, enabling management to reallocate resources towards front-office functions, specifically software engineering and sales.”
“We recognise that change brings uncertainty, and we have made every effort to navigate these challenges with transparency and fairness. Our team has shown remarkable resilience and adaptability during this period of transition, and we are grateful for their dedication to our shared vision.”
Wilkinson added that “the global ecommerce market in which SHL operates has been forecast to grow significantly and is a highly fragmented market.”
In 2019, Sorted raised £15m in a Series B funding round led by Merian Chrysalis Investment Company Limited (Merian Chrysalis), alongside Praetura Ventures and NVM Private Equity LLP. The investment took the firm’s total funding to more than £35m since its launch in 2010.