finance 29 AIM high – enhancing growth
Oxfordshire, with its technology and life sciences focus, has proved to be a rich source of companies seeking admission to AIM, writes Will Axtell, corporate partner at Penningtons Manches LLP
The AIM market of the London Stock Exchange, which celebrates its 20th anniversary this year, is one of the most successful growth markets in the world. From modest beginnings in 1995 with just 10 companies, AIM now has more than 1,100 companies with a total market capitalisation of around £70 billion.
Several Oxford University spin-outs are now listed on AIM, including Oxford Advanced Surfaces, Summit and Velocys. Other Oxfordshire AIM companies include Westminster Group, Hardide, Eden Research, OMG, Physiomics, Publishing Technology, Transense Technologies and Midatech.
While there has been a resurgence in UK technology businesses coming to the market, companies looking to list on AIM originate from all over the globe. For example, French
wine-maker Domaine Chanzy is looking to join AIM and raise £1.9 million. Domaine Chanzy’s ticker will be WINE!
AIM was established as a market for smaller, growing companies that might not be able to meet the more stringent criteria for listing on the main market of the London Stock Exchange. As such, it offers a lighter touch approach to regulation.
Why should growth companies consider AIM?
The main benefits of AIM are:
• to raise capital. AIM companies have access to the deep pools of liquidity that the London market can offer both at the time of IPO and subsequently through secondary fund raisings;
• to raise the company’s profile. A listing on AIM helps to enhance
Commitment (noun) The state or quality of being dedicated to a cause or activity
March was a month when we enjoyed the passion that we found in February. The sun began to shine, bulbs sprung into bloom and the mornings became lighter. April can be a fool.
Let’s make sure then that April is not the month when the passion fades. With a little commitment this new-found passion can lead to a flourishing relationship.
Having established that you have a passion for whatever you are doing then you need commitment to let that passion flourish. At WK Corporate Finance we are wholly committed to achieving your goals. It is a rare project that goes smoothly in the direction that you want it to. The skill is in being able to achieve the goal while overcoming the hurdles that jump up in front of you along the way.
Losing a key client while undertaking a sales process, key staff moving on, regulatory change all happen and could throw a deal off course. Commitment is needed to find solutions.
Darren Yates, MD and owner of JP Glass and Décor, valued this in our approach to his deal saying: “It was a pleasure to work with Philippa and her team over the past six months. They always communicated well and were always committed to moving the deal forward. In short I would recommend Philippa and WK to any client looking for an acquisition. I have signed up Wilkins Kennedy as my accountants going forward as a direct result of the teams’ professionalism.“
WK Corporate Finance offers a complete range of corporate finance services to small and medium-sized enterprises as well as to institutional funders. We specialise in lead advisory and transaction support on deal values of £1 million to £50m.
If you would like to meet with a truly committed team who have the passion to help you reach your corporate finance goal then we are the team for you.
Details: Philippa Robinson 01962-852263
philippa.robinson@
wkcf.co.uk www.wkcorporatefinance.com
compared to a private company.
• Costs of being a listed company – the IPO process can be expensive as can the ongoing costs of being a company on AIM.
• Management time – the cost of spending significant management time in dealing with the IPO and then investor relations, providing regular announcements and trading updates, can be burdensome.
the company’s status with its customers and suppliers;
• to help attract talent. Employee share schemes can motivate and engage employees;
• growth by acquisition. AIM companies can use their quoted shares to pay for a company they are buying instead of cash.
What are the downsides?
• Greater regulation and scrutiny – life as a plc on AIM will involve greater regulation, more corporate governance and increased public scrutiny when
• Susceptibility to market conditions – however well the company is performing, it may find that the price and liquidity of its shares are affected by market conditions outside its control.
While an AIM listing is not appropriate for all companies, for ambitious, smaller businesses with strong growth potential, it is an option to consider seriously.
Details: Will Axtell 01865-813670
william.axtell@
penningtons.co.uk www.penningtons.co.uk
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – APRIL 2015
www.businessmag.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36