Flight to quality on AIM says Deloitte

THE number of firms using the Alternative Investment Market as a springboard to the main list has risen sharply.

Research by accountants and business advisers Deloitte says that while there still appears to be an exodus from AIM, the rate is beginning to slow down.

The number of companies leaving AIM increased from 210 in 2007 to 258 in 2008, and 178 to July 31 this year.

However, the number of companies leaving AIM to join the main market has increased from three in 2006 to eight in 2007 and 11 last year.

Richard Bell, head of transaction services for the UK regions at Deloitte, says although the numbers are small by comparison, these are sizeable companies and as a percentage of companies listing on the main market, those moving up from AIM have increased significantly. 

In 2006, four per cent of all companies listing on the main market were joining from AIM. In 2007 this increased to 11% and by 2008 had reached 21%.  

Mr Bell said: “AIM has had a pretty bad rap in the past 18 months but there are strong signs that at the top end of the market it has been successful in doing what it set out to do. 

“While there has been a considerable fall out at the bottom end of the market – unsurprising following the over exuberance to join AIM at the height of the market – at the top there is a steady and growing number of companies whose success on AIM has proved a springboard to move up to the main market, as we saw NCC Group do.”

So far in 2009 there have been four move ups, but Mr Bell expects that number to increase. He added: “There are a number of other AIM to main move ups currently in progress and, while they may not all occur this year, the trend is pretty clear.”