Industrial clothing and textile group Ninian & Lester is planning to delist from the JSE Securities Exchange SA next month, blaming the decision on the negative market sentiment towards small capitalisation shares on the exchange.

Industry problems including illegal imports, rising labour costs and decreasing tariff protection have also eroded Ninian's turnover and profits in recent years.

In a notice sent to shareholders at the weekend, the directors propose that the Ninian listing is terminated on 25 February. Shareholders have already signalled they would favour the delisting.

As compensation the firm is offering its shareholders a premium of 850c for their holding.