The Alternative Investment Market (AIM) was set up in 1995 as a
stock exchange to provide cheaper access to capital for growth
companies in the UK. However, in a new survey of potential AIM
companies, accountants HLB Kidsons have found a decline in support
for the exchange.
The overriding opinion revealed by the survey “Taking Aim” was
that 81% of companies perceive AIM as either “not very attractive”
or “not attractive at all” to investors. This compared to a figure
of 31% last year. Only 17% of respondents felt that AIM was “very
attractive” or “quite attractive”, compared to 36% last year.
The most criticised features of AIM were the cost of entry, its
low volume of share turnover, and a perceived “lack of market
makers”. Market statistics suggest that this may not actually be
the case, as the number of AIM market makers has increased in the
past year, as has its volume of share turnover. The lack of
confidence could perhaps therefore be linked to the fact that only
1% of respondents could remember AIM being promoted to them in the
past year, a fall of 24% from two years ago.
Kidsons describe potential AIM companies as being
non-subsidiaries with profits of at least £500,000 and growth of 5%
in the most recent financial year.
