PracticeConsultingAIM less accessible

AIM less accessible

Sponsors shocked as survey reveals high cost of entry is discouraging potential users.

Small and medium-sized companies believe high costs of entry to theng potential users. Alternative Investment Market are making it less accessible than ever, according to a survey by Kidsons Impey.

The results are a blow to sponsors of the AIM market, who have struggled to overcome a series of scandals that have undermined the reputation of participants on the junior exchange.

Only 4% of potential users felt the market was ‘very accessible or easy to get admission to’, down from 9% the previous year, and only a further 23% felt it was ‘quite accessible’ compared to last year’s 29%.

A series of companies have crashed in the last year shortly after they listed on AIM. First Information Group, Omnimedia, and Crown Products Group saw their share prices collapse, while Firecrest was eventually delisted.

‘The perception that AIM is now less accessible than a year ago may partly be attributed to the increase in due diligence required by nominated advisers as a result of well-publicised failures,’ the report concedes.

According to other results of ‘Taking AIM’ – Kidsons’ survey of 150 fast-growing businesses, mainly in the #4m to #20m turnover band – companies are still keen to list on the market in the longer term.

Computer and hi-tech companies are looking increasingly to AIM for a higher City profile and a wider source of funds, said Graham Spooner, head of the firm’s corporate finance arm.

Spooner said: ‘Fast-growing computer and hi-tech enterprises are becoming single-generation businesses run by entrepreneurs with a view to exit rather than passing on the business to the next generation.’

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer