Broker finds love for AIM

MORE than 80% of AIM-listed companies in the North West have said their experience of life on public markets has been positive.

The research, by Wilmslow and London-based stockbroker XCAP Securities, also shows that 64% of the 41 firms who replied have taken the opportunity to use their own shares to help fund acquisitions.

The rate of attrition of businesses leaving the Alternative Investment Market (AIM) has been stark in recent years. Take-privates, takeovers, delistings and administrations has meant the number of companies on AIM has dropped by around a third – from a peak of almost 1,700 in 2007 to 1,150 last November.

Moreover, there have been few new IPOs to replace those leaving the market, and many smaller firms have cited the costs of maintaining a listing as a reason for departing from the market.

Despite this, however, XCAP’s corporate finance director Adrian Kirk argues that those that remain on the market feel it serves a useful purpose.

“Although market conditions are difficult, our annual AIM survey highlighted a number of positives,” he said.

“AIM offers companies the ability to continue to undertake acquisitions and use their shares as consideration – and North West companies are clearly taking advantage of this.  This is particularly important given the lack of bank funding available.”