AIM market set for boost, says Deloitte
The number of companies listed on Alternative Investment Market (AIM) is set to increase in 2012 for the first time in five years, according to analysis by Deloitte.
Research from the business advisory firm suggests the shake-out of companies from the market over recent years appears to be nearing completion as the level of delistings reached a six-year low in 2011.
Richard Knights, partner and capital markets specialist at Deloitte Midlands, said: "The number of companies on AIM peaked at 1,694 at the end of 2007, we have seen an almost non-stop decline in numbers to 1,150 companies listed as at 30 November 2011, a reduction of approximately one third.
"Over this time, listed companies have departed the market in droves, either voluntarily, if they don’t perceive ongoing value in their listed status, or involuntarily, generally due to their financial circumstances in these difficult economic times."
However, at the end of November 2011 the total number of de-listings stood at 131; a fall of 55 per cent compared with the peak recorded in 2009.
It is the lowest level of delistings since 2005, added Knights.
"The AIM market's return to growth will stimulate a more positive outlook for investors in small cap high growth companies," he added. "2012 is set to be an exciting year for followers of the AIM market."
