Analysis finds AIM companies directly contribute nearly £15bn to UK economy
- More than 3,580 companies have listed on AIM market in the past 20 years; raising £39.5 billion at admission, followed by further fundraising amounting to £51 billion
- AIM companies directly support employment of over 430,000 people and contributed tax payments to the Exchequer of £2.3 billion in 2013
- Currently around 1,088 companies trading on AIM, around 80% of which are UK based
Analysis by leading business and financial adviser Grant Thornton UK LLP has found that the economic contribution of companies listed on the London Stock Exchange’s AIM growth market directly contributed £14.7 billion to the UK economy in 2013*.
Commissioned by the London Stock Exchange, the report quantifies the scale and nature of AIM’s contribution to the UK economy. It finds that AIM companies directly supported the full time employment of over 430,000 individuals and contributed tax payments to the Exchequer of £2.3 billion in 2013.
Moreover, a broader analysis to include the indirect and induced attributes of AIM companies, such as the impact on suppliers and employee wage spend, shows total economic contribution of £25 billion in GDP, including employment of over 730,000 people.
AIM was established 20 years ago with the intent of providing a platform for dynamic growth companies to raise equity capital. Since its inception, AIM has supported over 3,580 companies, some of which have moved onto the Main Market. Grant Thornton’s report suggests that around 80% of AIM companies are UK domiciled, with almost half based outside London.
Philip Secrett, Partner and Head of Public Company Advisory at Grant Thornton UK LLP commented: “Despite the turbulence in international equity markets over the past years, AIM has maintained its position as the most successful growth market in the world and is now an established part of the funding ecosystem in the UK, supporting innovation, driving productivity and creating employment. The economic contribution AIM makes to UK PLC is clear. The ongoing Government support of AIM as a market for young, dynamic companies has been critical, with recent measures such as the removal of stamp duty on AIM shares and the inclusion of AIM shares in ISAs further supporting the development of the market and in turn, generating a material contribution to the UK economy.”
The analysis also finds that in the years leading up to the recession (2005-2007), AIM companies significantly outperformed the wider business population, with turnover growth of 28%, compared with just 12% across the wider business population. During the recession, this relative performance was reversed, with AIM companies experiencing a 2% decrease in turnover between 2008-2010, while the wider business population experienced 4% growth. However, in the period immediately following the recession, AIM companies have recovered faster, with a growth rate of 7% over the three year period (2010-2013), compared with just 1% across the wider business population.
Marcus Stuttard, Head of AIM, added: “As we celebrate AIM’s 20th anniversary, this report demonstrates that the market’s value extends far beyond the support it provides to ambitious, entrepreneurial companies across the UK. The figures revealed by Grant Thornton’s research present a picture of a market that serves not just its quoted companies and their advisers, but the country as a whole. As we enter AIM’s third decade, it is essential that we continue to build on this success, providing dynamic companies with the support they need to create jobs and growth for the UK.”
*The analysis uses the latest set of publically available accounts, which cover the 2013 trading year.
Source: Grant Thornton – Analysis finds AIM companies directly contribute nearly £15bn to UK economy
