Our Capital Markets team have produced a six monthly survey analysing the performance of AIM and AIM listed companies.
- How has AIM performed relative to the wider capital markets?
- What have been the trends in the number and size of AIM listed companies and how successful have they been in raising equity funds?
- Which sectors have been most in demand and which advisers have been most active?
"In recent years, AIM has proved to be very resilient in the face of numerous economic and geopolitical headwinds and has spectacularly outperformed the wider markets. Since the Brexit referendum, the AIM 100 index has increased by a remarkable 78% compared to an increase of just 30% for the FTSE All Share.
There are probably a number of factors in play: the mix of companies in better performing sectors, market consolidation aligned with a focus on quality by investors and regulators driving an increase in the overall quality of the market, various tax reliefs for investing in AIM shares, and the outstanding performance of some of AIM’s largest and best known companies. Fundamentally, the recent strength of AIM reflects the risks and rewards of investing in smaller companies, who have the ability to grow at a much faster rate than large listed companies
The only surprise is that, against this positive backdrop, the number of AIM companies continues to contract. Whilst this might perhaps reflect an increasing willingness of SMEs to consider a Standard listing on the Main Market, companies should be reassured that investors now see AIM as a home to a better stable of companies than may have been the case in the past. Let’s hope that AIM’s recent performance will encourage more companies to consider AIM as the growth market of choice for SMEs."
Chris Searle, Corporate Finance Partner