AIM set to make a comeback
The Alternative Investment Market (AIM) is “fighting back”. That’s the view of Midlands tax and advisory firm Crowe Clarke Whitehall, which said that the average market capitalisation of an AIM submission had increased by more than £20m in the past year.
Richard Baker, a partner at Crowe Clark Whitehill, said: “Although there are fewer companies on the market now than at the end of 2009, average market capitalisation of an AIM concern has increased from £43m to £66m. Funds raised on the market in the 12 months to the end of December increased by 60 per cent compared to the total funds raised in 2008.”
“The UK needs a healthy market of smaller and growing companies and there are grounds for cautious optimism for prospects of further recovery in 2011.”
Admissions to AIM dwindled in the wake of the recession and the number of companies on the market is currently down by about 30 per cent from its peak in 2007.
However, Baker said that there are now signs that earlier reports of the demise of AIM were premature. There were 102 admissions to the market, a considerable improvement to 2009.
He added that the wellbeing of the AIM market was “important to UK plc”.
