The possible closure of the AIM market has raised significant concerns among industry leaders.
- Claire Milverton, CEO of 1Spatial, voices disappointment over the potential shutdown of AIM due to its crucial role in their growth.
- A new report advocates for a special listing route for high-growth tech firms, highlighting AIM’s limitations.
- The sale growth at 1Spatial is attributed to its AIM listing, showcasing US expansion and new contracts.
- James Ashton emphasises AIM as vital for growth companies unsuited to the Main Market, warning of adverse effects.
The potential closure of the AIM market has sparked discussions across the financial sector. Claire Milverton, CEO of data management firm 1Spatial, expressed considerable disappointment at this prospect, stating that being listed on AIM has been instrumental to the company’s success. Having faced financial challenges in the past, 1Spatial utilised the flexibility and support provided by AIM to refinance and invest in technology, subsequently enabling expansion into the US market. Milverton articulated her concerns, “We had a difficult time a few years ago where we had to raise some money to pay off bank debt, and it gave us the money to invest in our technology and allowed us to expand to the US.”
Amidst calls to integrate AIM into the London Stock Exchange’s main market, a recent report from the Tony Blair Institute suggests the establishment of a “special route to listing” designed specifically for high-growth companies within emerging technology sectors. The report criticises AIM for failing to fulfil its intended purpose of supporting scaling businesses while underscoring the main market’s reliance on legacy sectors such as energy and finance.
1Spatial’s financial performance has been positively impacted by its presence on AIM, with recent reports indicating a notable increase in sales and expansion efforts. The company’s shares experienced a rise following a successful stretch that included the acquisition of contracts across 21 US states. Moreover, new partnerships with prominent French cities and a £1m agreement with a major UK county council have further underscored 1Spatial’s growth narrative.
James Ashton, CEO of the Quoted Companies Alliance, asserts that AIM remains an essential alternative for growth-focused enterprises not yet prepared for the Main Market. He warns that its absence might reduce Initial Public Offering (IPO) activity and push public enterprises to privatise prematurely. Ashton emphasises, “AIM is an essential alternative for growth companies that feel they are not ready for the Main Market. Its loss would narrow UK funding options and risk engraining further a one-size-fits-all approach to regulation and governance that punishes small, entrepreneurial stocks.”
The debate over AIM’s future underscores its pivotal role for many growth companies, raising concerns about broader impacts on the UK’s economic landscape.
