3 October 2011
Publications that covered this article included, The Daily Express, 3 October 2011, The Daily Mail, 3 October 2011, The Financial Times, 3 October 2011 and The Independent, 3 October 2011.
- New listings outpacing departures for first time since 2007
- But actual funds raised are weak
Our new research reveals a dramatic and unexpected turnaround for AIM with the number of new companies joining the market overtaking those leaving the market for the first time since before the financial crisis.
24 new companies joined AIM in Q3 2011, the highest number of new listings in one quarter since before the start of the financial crisis.
Just 21 companies left AIM in Q3 2011, the fewest to leave the market in one quarter since Q2 2006 (18), a 50% drop in the number of companies leaving AIM on the previous quarter (42 companies left the market in Q2 2011).
Laurence Sacker, Partner at our London office, comments: “AIM has produced a quite stunning result in the last quarter, taking a big step in the right direction. Market followers will have their fingers crossed that this is able to continue.”
“Despite turbulent market conditions caused by the Eurozone crisis, AIM has continued to attract a host of young and ambitious companies, which speaks volumes about the confidence people have in AIM.”
“However, AIM’s sheer size means that it has not been immune to the global flight from risk.”
Laurence explains that despite an influx of new listings, money raised by new issues has not kept pace, with total money raised to the end of August just £504 million, down 8% from £548 over the same period in 2010. The average amount of new money raised per AIM IPO has fallen by 20% to approximately £8million so far in 2011 (eight months to August 31st 2011) compared with to £10m per IPO over the same period in 2010.
Money raised through secondary fundraisings (such as Rights Issues) remain high, £2.8 billion to the end of August 2011, with investors preferring to back those companies who have already established themselves on AIM.
50% of departures now for ‘positive’ reasons
Our research reveals that 52% of companies leaving AIM in the last quarter either graduated to the Main Market or due to M&A activity, a sign that the market remains healthy.
Similarly, just 14% left as result of financial stress or insolvency, the smallest proportion of companies to leave since Q4 2008 (13% delisted due to financial stress in Q4 2008).
Laurence comments: “That is the AIM market working exactly how AIM investors would like it to work.”
“Losing companies who are either graduating to the Main Market or being taken over by another company are signs of good health for AIM.
“It really shows what confidence companies have in AIMs ability to take them to the next stage in their development - most companies listing on the exchange will have these outcomes in mind when they launch their IPO.”
We produce a range of informative publications focusing on the latest accounting issues. Click to add yourself to our mailing list.
Up to £15 million will be clawed back from academy schools before the end of the current academic year due to government budgeting errors, according to our data.
A quarter of all taxpayers may be paying the wrong amount of tax due to incorrect PAYE codes according to our analysis.
The cost of listing on AIM has risen at its fastest rate in more than five years according to our findings.
A sudden surge in M&A activity on AIM is being driven by private equity backed deals to take companies private, our research reveals.
From 6 April 2012 HMRC will be able to ask employers to pay a financial security where it thinks there is serious risk that the business won’t pay over their PAYE tax deductions or National Insurance contributions (NICs) on time.
The value of loans to businesses in the UK has slumped by 13% since the collapse of Lehman Brothers, the second fastest fall among the G8, according to our findings.
Our international network, UHY, welcomes new member firm in Tunisia, CNBA.
Hot on the heels of an announcement from HMRC that the closure date for the Liechtenstein Disclosure Facility (LDF) has been extended to 5 April 2016 has come speculation that the local banks are pushing for much higher transfers of funds into Liechtenstein and a minimum period for which any account must be kept open.
