April sees AIM surge higher as London’s growth market approaches GBP100 billion value

Quality of AIM continues to improve

It was encouraging to see AIM welcome several high growth new arrivals in April 2017 with the market value of AIM creeping ever closer to GBP100bn – good news for those investing in AIM for Inheritance Tax planning purposes

At the end of April 2017 there were 967 companies on AIM with the total market value of London’s growth market GBP92.83bn. This compares with the same number at the end of March 2017 when the market value was GBP88.78bn; there were 5 departures and the same number of new arrivals. It was encouraging again to see newcomers match leavers

A notable departure was Sirius Minerals, the fertilizer development company, which moved onto the Main Market.

AIM’s total market value hit a high of GBP108bn in July 2007 with 1,673 companies on the market. The market value subsequently fell dramatically in 2008 to only GBP37bn, with the AIM Allshare Index tumbling just over 67% over that period. It will therefore be a huge achievement for AIM to breach the GBP100bn level once again, especially with over 700 fewer companies than previously, yet again highlighting the dramatically improved quality of AIM.

From our perspective two of the more interesting AIM news arrivals were as follows:

Alpha FX Group (AIM:AFX) is a corporate foreign exchange specialist with a strategic focus on helping its clients control the impact currency volatility has on their business.

For those faced with the challenge of hedging their cash flow forecasts, they provide hedging programmes that ensure they can price competitively, maintain profit margins and cash flow. For those who don’t need a hedging programme, they still provide a range of execution services designed to reduce the time, cost and cash flow constraints that come from managing FX.

This is a highly profitable and cash generative business.

The Group raised £13m of new money and saw vendors sell down £17m at a share price of 196p. The shares got off to a very strong start on AIM and are currently up over 60% on the IPO price at 321p per share pushing the market capitalisation up to £105m.

The shareholder register includes some well-known institutions including Soros Fund management, who should know a thing or 2 about Foreign Exchange!
K3 Capital Group PLC (AIM:K3C) is a business sales and brokerage business headquartered in Bolton with operations throughout the UK and another highly profitable operation.

K3C helps its clients with the presentation of their businesses for sale to market, sourcing potential acquirers, and project management of transactions to completion. The Group has three trading subsidiaries KBS Corporate, KBS Corporate Finance and Knightsbridge.

The AIM placing raised £15.7m of old money for selling shareholders and £2.1m of new money.

 

Fundamental Asset Management has provided AIM Portfolio Management for Inheritance Tax planning purposes for over 10 years and has an outstanding performance track record.  Further information on our AIM services are available from the link here