The group said that it wants to reduce the number of shares in issue to a more “manageable level”, to facilitate the payment of dividends and to reduce the spread between the best bid and offer prices at which the shares trade on AIM.

Pittards said that it has convened a general meeting for January 15, 2014 to apprise the proposed consolidation.

Shares in the company were trading at 3.24 pence per share, up 8% at midday on December 19.