A survey of UK AIM-listed companies has revealed widespread optimism about business prospects in the coming year.
A survey of 142 AIM companies, 65% of which have a market cap of between £5m and £50m, found that 86% are positive about the outlook for their own business in the year ahead, up from 51% a year earlier.
The research, conducted by law firm and NOMAD Smith & Williamson, also found that 68% of respondents were positive about prospects in their sector, up from 30% 12 months ago.
The firms’ general optimism was backed up by a number of specific indicators, with 70% considering an acquisition, more than a third recruiting staff (last year more than half were considering redundancies) and 20% considering moving to the full list.
Only 6% of respondents said they were considering delisting, compared with the 15% that thought they would leave the market this time last year.
However, despite the marked improvement in business confidence from existing AIM companies, the market has yet to be buoyed by its first flotation of 2010.
Azhic Basirov, head of capital markets at Smith & Williamson, said: “In 2009 there were 36 new issues on AIM, a historic low, raising £740m of capital. By contrast, secondary fundraisings by existing AIM companies were popular and raised around £4.8bn, proof of AIM’s ability to deliver further capital to its existing members.
“Since the last quarter of 2009, we have been witnessing a renewed level of interest from a wide range of companies wishing to list on AIM. With credit markets settling down and improving investor sentiment, we expect the IPO activity level on AIM to increase and remain at a higher sustainable level going forward.”
© Crimson Business Ltd. 2010
