Accountant calls on Scottish firms to consider AIM as market turns 20

Scotland’s fast growth companies are missing out on higher profile, greater credibility - and a valuable source of funding by not considering the Alternative Investment Market (AIM), according to accountants BDO.

There are only 26 Scottish firms listed on AIM with a combined market capitalisation of £1510m. Across the UK there are currently 1,074 AIM-listed companies comprising 864 UK and 210 international firms with a combined market cap of £75,286m.

Neil McGill, corporate finance director with BDO, said: “Listing on AIM is not a particularly well-trodden path in Scotland, yet, it can be an excellent source of funding for dynamic businesses seeking a high profile and greater credibility. The market provides an external proof of performance and, whilst no-one would deny that running a listed company brings it challenges, it can also be extraordinary for the best managed firms.”

BDO makes the comments as AIM market approaches its 20th anniversary on 19th June.

Since AIM was launched there have been 3,602 listings raising a total of £92,213m.

In Scotland the company which has been listed on AIM the longest is Caledonian Trust which joined the market on 29th September 1995.

The newest company to join AIM is Stirling-based Superglass Holdings PLC which joined on 4th June 2013.

The AIM company with the largest market capitalisation is online clothes retailer ASOS which is valued at £3,075m while Scottish firm Smart Metering Systems PLC is in the top 50 largest firms with a market cap of £295.99m.

Mr McGill said: “Being on AIM listing means greater public exposure, considerable scrutiny over the way a business operates - and a very strict regulatory regime all of which adds to the credibility and profile of the business. Although it is seen as a junior market to the main market it is clear that star performers such as iomart and Smart Metering in Scotland and ASOS in England can grow into substantial, influential companies whilst on AIM.”

He added: “With the economy continuing to grow that many firms will have ambitious growth strategies and be seeking to expand in the coming year. There is a substantial amount of cash available for the right firm: listing on AIM should at least be considered by any ambitious business. It is definitely an option worth considering and it is, I believe, important for Scotland to grow the number of listed firms in the future.”