Energys Group Limited (NASDAQ: ENGS) received a determination letter from Nasdaq’s Listing Qualifications Department on December 30 2025, and the company announced the receipt of the letter on January 8 2026. The letter states that the company’s minimum market value of listed securities (MVLS) has fallen below the required $35 million for 30 consecutive business days, triggering a compliance notice.
The determination letter gives Energys Group 180 calendar days—until June 29 2026—to restore its MVLS to at least $35 million for a minimum of ten consecutive business days. If the company fails to meet this requirement, Nasdaq will issue a delisting notice and the shares could be removed from the Nasdaq Capital Market, ending the company’s access to the exchange’s liquidity and pricing mechanisms.
Energys Group’s financial performance has deteriorated sharply in the year ended June 30 2025. Revenue fell 28.2 % to £6.89 million from £9.6 million the prior year, and the company posted a net loss of £2.08 million versus a £1.11 million loss previously. The market capitalization sits around $12 million, far below the $35 million threshold, while the debt‑to‑equity ratio stands at 4.29 and the current ratio is 0.84, underscoring liquidity strain and high leverage. Gross and net margins are negative, at –0.02 % and –30.1 % respectively, reflecting pricing pressure and cost challenges.
CEO Kevin Cox said the company is “cognizant of the value to our shareholders of the Nasdaq listing” and pledged “our best efforts towards improved performance” to regain compliance. He emphasized that maintaining the listing is essential for liquidity and pricing efficiency, and that the company is actively pursuing operational improvements and cost controls to lift the MVLS.
The delisting warning signals a significant risk to Energys Group’s liquidity and investor confidence. Failure to restore the MVLS by the June 29 deadline would result in removal from the Nasdaq Capital Market, potentially leading to a sharp decline in trading volume and a loss of market visibility. The company’s current financial trajectory—declining revenue, mounting losses, and high leverage—creates a challenging environment for meeting the listing standard, making the compliance window a critical period for management to demonstrate a turnaround plan.
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