The Central South’s fast growth companies are missing out on higher profile and a valuable source of funding by not considering the Alternative Investment Market (AIM), according to accountants and business advisers BDO LLP.
There are currently 12 companies in the Central South listed on AIM. BDO in Southampton advises a number of these including drug development company, Synairgen plc, and leading payment and loyalty solutions provider, Universe Group plc. Across the UK there are 1,074 AIM-listed companies comprising 864 UK and 210 international firms with a combined market cap of £75.3bn.
BDO is the most active reporting accountant for AIM IPOs, and has held this position for four consecutive years. It also audits more AIM companies than any other firm. In 2014 alone, BDO completed 23 out of the 86 AIM IPOs, raising £456m with a total market capitalisation of £2.46bn.
Darren Phillips, Corporate Finance Director, commented: “Listing on AIM is not a particularly well-trodden path in the Central South, yet it can be an excellent source of funding for dynamic businesses. The market provides an external proof of performance and, while no-one would deny that running a listed company brings its challenges, it can also prove extremely beneficial for the best managed companies as the success of companies on AIM has demonstrated.”
BDO makes the comments as the AIM market approaches its 20th anniversary on 19th June 2015. Since AIM was launched there have been 3,602 listings raising a total of £92.2bn. The AIM company with the largest market capitalisation is online clothes retailer ASOS which is valued at £3.1bn.
Darren continued: “Although it is seen as a junior market to the main market it is clear that star performers such as ASOS can grow into significant and household names on AIM.”
“There is a substantial amount of capital available for the right companies. As the economy continues to grow and confidence remains high, an admission on AIM is a hugely credible option for growing businesses. It is definitely an option worth considering and it is, I believe, important for the Central South to grow the number of listed firms in the future.”
