Is AIM becoming too boring?
A review of new arrivals on AIM over the past 15 months suggests that AIM is becoming the chosen destination for larger, more mature businesses, whose owners are seeking a partial exit, as opposed to Groups requiring new money to support their high growth aspirations.
There have also been a growing number of mature small cap movers from the Main Market who are attracted to AIM due to the lower costs, looser regulatory environment and inheritance tax attractions for shareholders.
This all appears to contrast markedly with the AIM of 5 or more years ago which saw larger numbers of smaller ventures list on AIM principally for the purpose of supporting their growth aspirations.
The larger more mature arrivals conceivably lower the risk profile of AIM but could also lessen the investment attractions for those seeking higher growth opportunities from the junior market.
While AIM has also seen a large number of higher growth smaller ventures join in the period we are certainly wary of the growing number of private equity or founder exits that have been facilitated through an AIM admission which could suggest that the easy money has been made in these issues.
We look forward to seeing a greater proportion of smaller (yet profitable), more innovative businesses joining the junior market over the coming months.
Notable arrivals on AIM over the past months that reflect some of the above include the following:
DX (Group) PLC (AIM:DX.) is a parcel, mail distribution & logistics company operating in UK & Ireland. It provides next day delivery services for mail, parcels & 2-Man deliveries to business and residential addresses for both public & private sector companies.
DX Services was de-merged from Hays PLC in 2004 and listed on the Main Market of the London Stock Exchange. It was taken private…
Sign up and read the full article
Register to continue reading our content.
Get FREE access now
Already a member? Login
Previous article
Next article
More on boohoo.com plc
10/05/2024 · Podcasts
In this episode of the Investor’s Champion Podcast Chris and Lee discuss the resurgent UK stock…
25/01/2022 · Company Insights
Papers previously published by the Office of Tax Simplification initially sent shivers of uncertainty through AIM.…
More on Camellia PLC
05/09/2023 · Company Insights
Results from these small companies highlight their considerable valuation appeal. A little shareholder patience is also…
08/06/2023 · Company Insights
A patent dispute turns murkier, while a lockdown winner is now struggling for survival. Elsewhere, there…
More on DX Group
11/09/2023 · Company Insights
The week kicks-off with yet another offer for a modestly valued AIM company. We remain puzzled why…
19/07/2023 · Company Insights
News covered here includes results and updates from several companies trading at very modest valuations and…
More on entu UK PLC
01/09/2015 · Company Insights
The home improvement group providing energy efficiency products and services to homeowners in the UK, has…
20/04/2015 · Company Insights
A review of new arrivals on AIM over the past 15 months suggests that AIM is…
More on Epwin Group
13/09/2024 · Company Insights
News covered here includes our assessment of interim results from Fevertree, which disappointed the market, despite…
14/04/2024 · Podcasts
In this episode of the Investor’s Champion Podcast we hear Chris and Lee run through key…
More on Fevertree Drinks
15/09/2024 · Podcasts
In this episode of the Investors Champion Podcast, hosts Lee and Chris focus on news from…
13/09/2024 · Company Insights
News covered here includes our assessment of interim results from Fevertree, which disappointed the market, despite…
More on Gamma Communications
10/09/2024 · Company Insights
This fast-growing provider of unified communications is a fantastic company, generating attractive operating margins and heaps…
13/01/2023 · Company Insights
Updates covered here include several AIM and small cap companies offering high dividend payouts. While some…
More on Manx Telecom PLC
30/06/2020 · Company Insights
News today includes the launch of a new Covid-19 antibody test from an AIM quoted group…
14/09/2018 · Company Insights
With the summer lull behind us, many public companies, large and small, have been issuing results…
More on Mpac Group
01/10/2024 · Company Insights
News covered here includes our assessment of results from one of AIM’s highest quality companies, with…
19/03/2024 · Company Insights
An AIM company covered below has staged an amazing recovery over recent years. Despite the soaring…
More on Patisserie Holdings PLC
14/02/2019 · Company Insights
New chief executive Stephen Francis could do very nicely after buying a chunk of the company…
05/02/2019 · Company Insights
Patisserie Valerie’s chairman Luke Johnson has confirmed that he is supportive of potential legal action against…
More on Shoe Zone
06/07/2024 · Podcasts
In this episode of the Investors Champion Podcast, Chris and Lee start with a discussion on…
04/07/2024 · Company Insights
News covered here includes our assessment of fabulous results from a marketing decision-making platform whose shares…
More Company Insights
A bright start to the week for these AIM companies
An impressive trading update brings another upgrade
A high-quality AIM company continues to deliver
More on boohoo.com plc
More on Camellia PLC
More on DX Group
More on entu UK PLC
More on Epwin Group
More on Fevertree Drinks
More on Gamma Communications
More on Manx Telecom PLC
More on Mpac Group
More on Patisserie Holdings PLC
More on Shoe Zone
More Company Insights
