RSS

AIM companies ripe for acquisition

Article Date:  Mar 27 2008 Marc Barber

Over half of the companies listed on AIM are valued under £20 million, making them perfect targets for acquisitive companies. Of the 1,692 companies listed on AIM, a third are valued under £10 million, 20 per cent under £5 million, and eight per cent under £2 million, according to research by Growth Company Investor*.

The market value of AIM grew only 1.7 per cent, from £95.8 billion to £97.4 billion, compared with the near-70 per cent growth reported in the previous four years. Among the select group choosing to come to market, only 16 new companies attracted £100 million or more, roughly half the 31 ventures that managed to pull in such sums a year earlier. Moreover, not one IPO managed to prise in excess of £300 million in 2007 (as two companies did in 2006) and there was a decline in floats attracting £200 million or above, with the number dropping from nine in our last report to only four this time around.

The research also found that only one out of the largest 20 IPOs of 2007 was a UK company – veterinary service provider CVS Group. The other 19 were all either overseas focused or incorporated in tax-friendly jurisdictions ranging from the Isle of Man, to Jersey and Bermuda.

All this may be bad news for CEOs on AIM or those contemplating a float, but for investors it could be an opportune time to buy cheaply priced stocks destined to reach the heights. Chris Hutchinson, manager of the Unicorn AIM Venture Capital Trust Fund, says: ‘Any high-net-worth investor should aim to allocate a small portion of their hard-earned wealth to a broadly based portfolio of shares in AIM-listed companies.’


*Growth Company Investor is a sister title of GrowthBusiness

BUY THE FULL REPORT:

This research is part of a more comprehensive report entitled Spotlight on AIM 2008. The report is available in PDF format priced £295 +VAT. To order a copy, call Danica Pasinis on 020 7250 7039 or email danica.pasinis@vitessemedia.co.uk

Comments 

There are currently no comments on this article

Sign up and get...

  • Regular GrowthBusiness newsletters
  • Post comments on articles
Sign up

Selecting the right IT strategy in 2010

Owner managers and CEOs of fast-growing companies want IT-applications that accelerate competitive advantage and improve operational efficiency. This free whitepaper helps you plan and choose the right IT strategy for your business in 2010. Download ‘Selecting The Right Software Vendor’.

Get started with Barclays Business Banking

Choose from 3 great Start-up packages offering a range of business and banking solutions, from cashflow management software (QuickBooks or Sage) to VAT management solution. Plus, up to 2 years FREE banking (conditions apply). Apply online.

Secure early payment for your unpaid invoices with Simply Business

Simply Business works with a carefully selected panel of the UK's leading factoring and invoice discounting providers. Find out your cash flow options in minutes, you could have 90% of your invoices paid in 24 hours. To find out more click here

Research

  • Directors' Pay AIM 2009

    What should an AIM company pay its CEO or FD?
    What should a non-executive director or chairman expect to be paid?
    What benchmarks should AIM remuneration committee members be using when
    setting pay?

VCT Special Report 2009

This reports principle aim is to provide business owners seeking funding with information about the amount of funds that VCTs have to invest.

Cash Shells Special Report 2009

A comprehensive overview of cash shells on AIM and PLUS, companies that have become a significant feature on the market landscape.

More

Events Calendar

The Media Magnate Awards 2009

26th March, Vinopolis, London

More

More News: IPO & City News

Jeyes in £20 million refinancing

Hygiene product company Jeyes, which is part-owned by private equity firm LGV Capital, has secured an asset-based lending facility worth £20 million.

Growth companies to benefit from fundraising bonanza

As much as £300 million is expected to be raised this tax year for investment in growing businesses, according to fund managers.

Jaeggi to chair The Founders Club

A network of VC-backed entrepreneurs who agree to share profits from their exits has appointed private equity chief André Jaeggi as group chairman.

Advertisement

Related articles

Pay squeeze for AIM directors

The average pay of chief executive officers and finance directors of AIM-quoted companies has fallen since last year.

Only 28 AIM CEOs are women

Women head just two per cent of AIM-listed companies, and only five per cent of financial directors on the market are female, research reveals.

Cancer vaccine specialist in PLUS IPO

A company developing a pipeline of cancer vaccines has raised £1.55 million in an initial public offering (IPO) on PLUS. Scancell raised the money through AIM-listed broker St Helen’s Capital. 

Wagon sets wheels in motion for AIM move

Automotive components group Wagon, which is listed on the LSE’s main market, says it expects its move to AIM to be completed by 6 October. The move was necessitated by a refinancing earlier this year, resulting in less than 25 per cent of Wagon’s shares remaining in public hands.

Poll

What should Alistair Darling deliver in the Budget?




Have your vote on current issues

People who read this also read

  • Cash shells: the clock ticks

    Looking for a quick route to the stock market with a tidy sum of cash thrown in for good measure? Then why not take the cash shell route. There are 88 shells on AIM, with £77.1 million in cash between them - and most of it has to be spent in the next eight months.

  • Sphere’s generic appeal

    Sphere Medical, the Cambridge-based medical devices business, has completed a £6.2 million pre-IPO fundraising supported by the likes of existing investors Artemis, Herald Ventures and Hotbed and new backers Oxford Capital Partners and Schroeder’s.

  • Pay squeeze for AIM directors

    The average pay of chief executive officers and finance directors of AIM-quoted companies has fallen since last year.

  • Balderton-backed Yoox in IPO

    Online fashion retailer Yoox has completed an initial public offering (IPO) on the Milan stock exchange, allowing a partial exit for Balderton Capital.

  • Tax breaks for investors in AIM

    Now business asset taper relief has been removed, what are the remaining tax incentives for investors in AIM?

White Papers

Better Roads

Serves the information needs of governments and construction contractors involved in Federal, State, County, City and Township highway, road and bridge construction, winter maintenance, roadside and vegetation management and other highway-related projects.

Defense Technology International

Is the one publication focusing on the critical role of defense technologies in programs, policies, programs and funding, providing readers with integrated intelligence and global perspective in Land, Sea, and Air.

FierceGovernmentIT

Is a free, three times a week email briefing for government employees and contractors on the latest government technology news.

More