- Angela Gonzalez-Rodriguez |
The vote casted by Britons to leave the European Union has become just the last straw for a weaker than ever Alternative Investment Market (AIM). The number of companies trading within the market for smaller capitalisation firms has retreated substantially in the past year.
In fact, AIM has lost 60 companies over the last twelve months, suffering a steady ‘détente’ of new joiners ahead of the Brexit referendum, according to a report released Monday.
AIM’s newcomers numbers down to 5year minimum due to Brexit
As highlighted by accountancy firm UHY Hacker Young, barely 40 companies joined the alternative market between mid-2015 and mid-2016, the lowest number of entrants in five years, said the author of the report, while 100 companies exited the market.
"A difficult year for IPOs has been intensified by the shadow of the EU referendum looming over the UK," said Laurence Sacker, the UHY managing partner.
Sacker added that "Companies have been reluctant to list on AIM with the possibility of Brexit and many have been forced to exit the market after struggling financially."
Despite the gloom, Asos remains the leader amongst some large high-profile companies such. Other fashion and apparel companies trading on the AIM are Bonmarché, Mulberry, Mothercare or Asos´ competitor Boohoo.com.
Most AIM-listed companies are relatively small, with the average market capitalisation in May was around 75 million pounds.
More than 1,000 companies are currently listed on AIM, a market operated by London Stock Exchange Group PLC (LSE.LN) that offers companies a cheaper, less-regulated alternative to the LSE's main market.
Image: Asos Edits:Festival Faves, from Asos UK Site