Shares in Palmaris, which traded as high as 15.75p in June 2010 when Scottish Coal parent SRG unveiled ultimately abandoned plans for a potential £200 million-plus flotation in July that year, have tumbled from their 2.5p close last Friday.

Palmaris last night had a stock market worth of £1.75m, with its shares closing down 0.375p or 25% on the session at 1.125p, having hit a 0.75p intra-day low.

Noting its 16.1% stake in SRG was its "sole remaining investment", Palmaris said yesterday: "Palmaris ... notes the recent movement in the company's share price. The company's board has resolved to recommend the cancellation of the company's listing on AIM. More details will be announced in due course."

Publishing interim results in March, Palmaris said: "SRG's results so far for the current year to March 2012 are behind budget in a number of areas and are likely to end up below the previous year's figures rather than significantly above them as had been hoped six months ago.

"In the previous year, four million tonnes of coal were sold for a total turnover of £209m, which produced operating profits of £13m. The operational performance of SRG has been affected by the fact the west of Scotland has endured above-average rainfall during the winter, resulting in coal production and coal sales being below target."

At that stage, Palmaris signalled potential for a significant cut in its £15.45m valuation of its SRG stake.

Palmaris said in March that a valuation review was expected in its year-end accounts, and declared: "Were we to have had sufficient financial information to have undertaken a full review of the SRG valuation, we believe this would have resulted in a substantial reduction in the value of our SRG holding."