Success story as AIM celebrates 25th anniversary

Since its inception in June 1995, AIM has admitted over 3,800 companies from across the globe, raising a combined £118bn in equity capital. LSE said AIM has become one of the world’s most successful growth markets, supporting companies through changing business and economic cycles,

Yorkshire firms on AIM include drug developer Avacta, which is working on a Covid-19 rapid testing programme, and credit lender Morses Club. Other Yorkshire members include Gear4Music, Animalcare, OptiBiotix Health and Tissue Regenix.

LSE said research published by Grant Thornton this week shows the significant value of AIM companies to the UK economy and the support that AIM has provided to business growth over the past 25 years.

The report has found that AIM companies contributed £33.5bn Gross Value Added (GVA) to UK GDP in 2019 and directly supported more than 430,000 jobs.

When economic activity through AIM companies’ supply chains and expenditure of employees in their local economies is taken into account, the overall economic impact of AIM companies is equivalent to £67.2bn in GVA and over 900,000 jobs.

UK companies admitted to AIM have also continued to expand internationally. Over the last 10 years, these companies have grown their overseas sales from £7bn in 2010 to £12.4bn in 2019.

Nikhil Rathi, CEO of London Stock Exchange, said: “AIM was launched 25 years ago to provide a platform for growth companies to raise long-term patient equity capital.

“Since then it has become one of the most successful growth markets in the world, helping over 3,800 companies raise a combined £118bn.

“This continued access to capital is particularly important today helping to support business in the recovery from the impact of the Covid-19 pandemic as firms look not only to strengthen their balance sheets but to fund innovation and growth.”

John Glen MP, Economic Secretary to the Treasury, said: “The UK’s innovative and dynamic SMEs are the backbone of our economy.

“The fact that almost 60 per cent of UK businesses on AIM are based outside London demonstrates its role in regional economic development and employment.

“The UK Government has backed AIM in a number of ways, whether through tax incentives or allowing AIM shares to qualify for ISAs, and we remain dedicated to supporting the UK’s high growth companies to achieve their potential.”

Marcus Stuttard, head of AIM and UK Primary Markets at London Stock Exchange, added: “Since its launch, AIM has not only adapted and evolved to meet the needs of growth companies and investor appetite globally, it has also remained resilient through economic cycles.

“AIM’s ecosystem of entrepreneurial companies, alongside the long-term investors, nominated advisers, brokers and intermediaries that support them, have been key to its success.

“We remain committed to ensuring that high-growth companies across all stages of their development are able to access the capital they need for the next stages of their journey.”