Deal Listings

AIM looks for lucky 13th year

Jun 07 issue

Companies and investors alike are confident AIM will pick up over the next 12 months, according to independent research commissioned by accountancy firm Baker Tilly.

Investors attributed a ‘disappointing’ performance in 2006 to a range of factors, including a decline in the quality of companies coming to market (41 per cent), an increase in the number of companies on AIM (27 per cent) and the poor performance of the heavily represented mining sector (20 per cent).

However, 55 per cent of AIM companies, and 53 per cent of investors, expect performance to improve in 2007, while only six per cent of companies and 16 per cent of investors see it getting worse.

Platform for growth
The survey suggests that AIM, which was launched in June 1995, continues to fulfil a crucial role. Only one in five of the surveyed companies looked at other markets before joining AIM, while three-quarters have no ambitions to move to another market.

‘AIM is no longer seen as a feeder to the main market,’ says John Banks, managing partner at Baker Tilly. ‘Unless we have a number of failures, where professionals are seen not to have done their jobs, it should remain the respectable market that it has become, and continue to grow at a good rate.’

There is a cautionary note to the report: over half of investors (53 per cent) perceive corporate governance among recent AIM entrants to be ‘not very good’ or ‘poor’ â“ while none describe it as ‘very good’. And only half the investors consider companies’ investor relations activities to be effective. Click here to view table