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
14/04/2024 · Podcasts
In this episode of the Investor’s Champion Podcast we hear Chris and Lee run through key…
10/04/2024 · Company Insights
Our update here includes our assessment of results from an AIM company operating in the currently challenged…
More on Fevertree Drinks
30/03/2024 · Podcasts
This episode of the Investor's Champion Podcast discusses Donald Trump's latest stock market success, cocoa prices…
26/03/2024 · Company Insights
Results and updates covered here include impressive news from two of our Bonkers Bargain opportunities, one…
More on Gamma Communications PLC
21/05/2024 · 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
19/03/2024 · Company Insights
An AIM company covered below has staged an amazing recovery over recent years. Despite the soaring…
02/09/2021 · Company Insights
The latest update from a leisure travel airline covered here was much as anticipated. Despite the current…
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
19/10/2023 · Company Insights
News covered in our free update here includes another impressive trading update from a business operating…
14/07/2023 · Company Insights
News covered here includes encouraging results from a small company in the financial services sector which…
More Company Insights
One of the best companies on AIM still looks terrific value
Private equity eyes-up one of AIM’s largest companies
Focus on free cash flow – but check the calculation!
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 PLC
More on Manx Telecom PLC
More on Mpac Group
More on Patisserie Holdings PLC
More on Shoe Zone
More Company Insights