AIM INSIGHTS A new six monthly review of AIM
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AIM INSIGHTS A new six monthly review of AIM
AIM insights 1
A NEW SIX MONTHLY REVIEW OF AIM
2013 was the year when capital markets finally burst back into life KEY FINDINGS
after years in the doldrums. As economic growth finally gained • The AIM 100 index grew three times faster than the FTSE 100 in
some meaningful traction, investors became less risk averse and the second half of 2013
started looking again at the capital markets. With demand pent up
after the long period of ‘closure’, IPOs and equity fundraisings were • There were 40 IPOs1 in the second half of 2013 compared to 21
substantially higher than in prior years. IPOs in both H1 2013 and H2 2012. This resulted in a net increase
of two in the number of companies listed on AIM at the year end
In this first edition of a new six monthly survey of AIM, the BDO compared to June 2013, the first such six monthly increase since
capital markets team considers the performance of AIM and AIM 2007
listed companies for the six months ended 31 December 2013.
• Total proceeds from new admissions in the second half of 2013
How has AIM performed relative to the FTSE All Share? What have amounted to £850 million, a 151% increase compared to the
been the trends in the number and size of AIM listed companies £338 million raised for new admissions in the first half
and how successful have they been in raising equity funds? Which • Total proceeds from further issues in H2 2013 amounted
sectors have been most in demand and which advisers have been to £1.64 billion, an increase of 52% compared to H1 2013
most active? (£1.08 billion)
• In H2 2013, technology and other financial were the most active
sectors for fundraising with 23% and 15% of total funds raised
• There was a substantial increase in the amount of funds raised in
the final quarter of 2013 compared to the rest of the year. 45% of
all secondary funds for the year were raised in Q4.
1. IPOs in this document are defined as excluding introductions and reverse takeovers
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2 AIM insights
MARKET PERFORMANCE
AIM ON THE UP
• The AIM 100 index grew three times STOCK MARKET INDICES - H2 2013 (REBASED)
faster than the FTSE All Share in the
125
second half of 2013
120
• The AIM 100 grew by 22% over the six 115
month period compared to 8% for the
110
FTSE All Share
105
• Outperformance by the AIM 100 is 100
also evident over a five year period,
95
increasing by 104% compared to 59%
90
for the FTSE All Share
85
• The year’s peak for both the AIM 100 80
(3,883) and the FTSE All Share (3,610) Jul 2013 Aug 2013 Sep 2013 Oct 2013 Nov 2013 Dec 2013
was at the end of the year.
AIM 100 FTSE All Share
STOCK MARKET INDICES - 5 YEAR (REBASED)
250
200
150
100
50
0
2009 2010 2011 2012 2013
FTSE AIM 100 FTSE All Share
AIM insights 3
NUMBERS STABILISING
• 2013 was the sixth consecutive year AIM COMPANIES - NUMBERS AND MARKET CAPS
of decline in the number of AIM listed
companies 1800 120
1600
• However, 2013 saw the smallest 100
reduction (9 or just less than 1%) over 1400
that period 1200 80
1000
• The total number of companies at the 60
£bn
800
end of December 2013 (1,087) was
600 40
higher than at the end of June 2013
(1,085) after a significant increase in 400
20
the number of new admissions in the 200
1,021 1,399 1,634 1,694 1,550 1,293 1,195 1,143 1,096 1,087
second half of the year 0 0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
• This was the first six monthly increase
in AIM company numbers since 2007 No. of companies (l-h scale) Market value (r-h scale)
• There were 40 IPOs in the second half
of 2013 compared to 22 IPOs in both
H1 2013 and H2 2012. H2 2013 saw 25
other admissions (such as introductions AIM JOINERS AND LEAVERS
and re-admissions) which compares to 80
12 and 15 non-IPOs in H1 2013 and H2
60 65
2012 respectively
40
• There was still a reasonably high level 34 37 34
20
of churn, with the number of delistings
increasing from 43 in H1 2013 to 54 0
in H2 2013. Sixteen of these occurred (20)
in December, the highest monthly (40) (45)
number in 2013 (62)
(56)
(63)
(60)
• The total market cap of all AIM (80)
companies at 31 December 2013 was H112 H212 H113 H213
£76.0 billion, a 23% increase compared
to the 30 June 2013 total of Admissions Delistings
£61.8 billion
• Average market cap per company at
31 December 2013 was £70 million,
which is a substantial increase from the
average of £57 million at 30 June 2013
and £56 million at 31 December 2012
• The average market cap for new
admissions in H2 2013 was £49 million,
a 63% increase on H1 2013
(£30 million) and 26% higher than the
average in H2 2012 (£39 million).
4 AIM insights
FUNDING
MARKETS RE-OPEN
• Total proceeds from new admissions
in the second half of 2013 amounted
TEN LARGEST IPO FUNDRAISINGS - H2 2013
to £850 million, £726 million of which
related to IPOs. This represents a 151% Sector £m
increase compared to the £338 million
raised for new admissions in the first Tungsten Corp Financial 160
half and a 69% increase on the amount
Safestyle UK Retail 70
raised in the same period in 2012
Plus500 Financial 50
• Average IPO proceeds per company
in the second half of 2013 was Globalworth Real Estate Investments Equity investment instruments 47
£18.2 million. This is 61% higher
than the average in the first half of Benchmark Holdings Pharmaceuticals and Biotech 45
£11.3 million but 19% lower than the
Mincon Group Industrial engineering 42
average in the second half of 2012 of
£22.4 million (which was distorted by Conviviality Retail Retail 33
a particularly large IPO by Sherborne
Investors raising £207 million) Action Hotels Travel & leisure 31
• Total proceeds from further issues in Netscientific Financial 30
H2 2013 amounted to £1.64 billion, an
increase of 52% compared to H1 2013 Keywords Studios Support services 28
(£1.08 billion) and 73% compared to
H2 2012 (£0.95 billion) TEN LARGEST FURTHER ISSUES - H2 2013
• 234 companies raised money through Sector £m
further issues in H2 2013 at an average
of £7.0 million per company. This Quindell IT 211
compares to 184 companies in H1
Lekoil Oil & gas 76
2013 at an average of £5.8 million per
company. Newriver Retail Real estate investment 67
Mar City Real estate investment 62
Helphire Group Financial 60
Stanley Gibbons Group Retail 51
New Europe Property Group Equity investment instruments 40
Blinkx IT 39
Hydrodec Group Alternative energy 36
Sirius Real Estate Real estate investment 33AIM insights 5
FUNDING
MARKETS RE-OPEN
• In H2 2013, technology and other ANALYSIS OF FUNDS RAISED BY SECTOR
financial were the most active sectors
for fundraising with 23% and 15% of
total funds raised. In the first half of 3% 1% Technology
6%
the year, the most active sectors were 23% Other financial
6%
industrials (24%) and oil and gas (17%) Oil & gas
• The other financial sector included 7% Real estate investment
the IPOs of companies involved in Consumer services
healthcare investment, accident Industrials
8%
management, contracts for difference,
15% Basic materials
B2B e-invoicing and banking
Healthcare
• There was a substantial increase in 10%
Equity investments
the amount of funds raised in the final 11%
10% Consumer goods
quarter of 2013
Other
• Funds raised in the final quarter of 2013
accounted for 45% of total funds raised
in the year; this compares to 29% in
2012 NEW AND FURTHER ISSUES
• Total funds raised in the first three 800
quarters of 2013 were actually 3%
700
lower than in 2012
600
• Eight of the ten largest further issues
500
noted above took place in Q4 2013,
with only Newriver Retail and Sirius 400
Real Estate fundraisings taking place 300
earlier in the year. 200
100
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2012 20136 AIM insights
MOST ACTIVE ADVISERS
NOMADS
• The most active Nomad on AIM IPOs in IPOS - MOST ACTIVE NOMADS
2013 was Allenby Capital
IPOs (No.) Money raised (£m)
• The most successful Nomad on
AIM in terms of IPO proceeds was Allenby Capital 7 10
Charles Stanley Securities who raised
£162 million. However, as this was raised Nplus1 Singer Advisory 6 152
for just two IPOs, it is not in the top ten Cairn Financial Advisers 5 15
most active Nomads.
Zeus Capital 4 114
Cenkos Securities 4 76
Beaumont Cornish 3 7
Strand Hanson 3 34
Smith & Williamson 3 19
Panmure Gordon 3 77
Liberum Capital 3 90
Others 26 380
Total 67 973
REPORTING ACCOUNTANTS
• For the third year in a row, BDO was the IPOS – REPORTING ACCOUNTANTS ON AIM
leading reporting accountant on AIM for
IPOs with clients across a range of sectors, 2012 2013
including oil and gas (3), general financial
BDO 8 12
(2), support services, pharmaceuticals,
leisure, mining, beverages and chemicals. Grant Thornton 3 9
Baker Tilly 5 7
KPMG 1 7
PwC 1 5
Crowe Clarke Whitehall 5 5
Deloitte 4 4
UHY Hacker Young 2 4
Ernst & Young 2 3
Other 12 11
Total 43 67CONTACTS
ANDY HARRIS CHRIS SEARLE IAN COOPER JOHN BARKER
READING LONDON LONDON LONDON AND EAST ANGLIA
Partner Partner Partner Partner
t: +44 (0)20 7893 2162 t: +44 (0)20 7893 2058 t: +44 (0)20 7893 2678 t: +44 (0)20 7893 3980
e: andy.harris@bdo.co.uk e: chris.searle@bdo.co.uk e: ian.cooper@bdo.co.uk e: john.barker@bdo.co.uk
CHRIS HEATLIE GRAHAM ELSWORTH JEFF HARRIS MATT COPLEY
MANCHESTER BIRMINGHAM GATWICK LEEDS
Partner Partner Partner Partner
t: +44 (0)161 833 8362 t: +44 (0)121 352 6212 t: +44 (0)129 384 8994 t: +44 (0)113 204 1217
e: chris.heatlie@bdo.co.uk e: graham.elsworth@bdo.co.uk e: jeff.harris@bdo.co.uk e: matt.copley@bdo.co.uk
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