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22 focus on oxford


AIM high – enhancing growth through an IPO on AIM


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


World-first technology promises sustainable future for printing


A leading green printing company based in Oxford has launched a unique printing press that combines the highest possible sustainability standards with unrivalled print quality. Developed by Oxford- based Seacourt, the LightTouch printing press is the first and currently only one in the world to combine waterless printing technology with instant drying powered by LEDs.


Commercial printing is the fifth-largest manufacturing industry in the UK and has a significant impact on the environment. Printing presses have a high demand for water and produce many hazardous


www.businessmag.co.uk


pollutants. The print industry’s energy consumption is comparable with that of the iron and steel industries.


The LightTouch process could play an important role in ensuring a sustainable future for the print industry, which has struggled with the rise of digital and customer concern about whether print communication is environmentally responsible.


Traditional printing techniques can consume thousands of litres of water per day and require the use of volatile organic compounds (VOCs) that contaminate the water supply. LightTouch uses special


corporate governance and increased public scrutiny when 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.


• 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.


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


silicone plates to control how the ink is applied, removing the need for water and any associated pollution.


In a world-first, LightTouch combines this waterless method with an instant drying technique powered by LEDs. Some printers have started to use conventional UV lamps to speed up the drying process and improve turnaround times for jobs. Seacourt has replaced these lamps with LEDs, reducing the amount of energy consumed by over 85%.


Crucially, these improvements in environmental performance go hand-in-hand with delivering the highest levels of print quality. Removing water from the process prevents ink dilution ensuring vibrant, punchy colours. Instant drying ensures dramatically faster turnaround times and avoids inaccuracies like scuffing and strikethrough.


Seacourt managing director Gareth Dinnage explained: “The LightTouch printing press is an outstanding example of how a deep commitment to sustainability can lead to leaps forward in technological performance. LightTouch will not only make us extremely competitive in the marketplace but could also lead the way in ensuring a sustainable future for the print industry as a whole.”


Seacourt first introduced waterless printing in 1997 when the technology was in its infancy. Since then, the company has saved over 7.5 million litres of water and been recognised with two Queen’s Awards for sustainable development. Dinnage and his team worked with leading manufacturers to develop the new printing press, which was installed at Seacourt’s premises last month.


THE BUSINESS MAGAZINE – THAMES VALLEY – APRIL 2015


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


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