AIM money raised at 10-year low

Mar 11 2009 by Peter McCusker, The Journal

ACTIVITY on AIM in quarter four of 2008 flat-lined, with new money raised at its lowest for a decade, including no new money at all raised in October.

In a year, more than 100 have left, including one regional business, Northern Recruitment Group, and last week Metnor Group said it was also leaving.

Audit partner at Deloitte in Newcastle, John Charlton, said: “The extremely low levels of activity in quarter four are the culmination of a year of turmoil for the AIM market, which appears to have suffered particularly severely from the wider upheaval in the world economy.

“It is difficult to foresee any change in the negative sentiment towards AIM in the short to medium term. There is a continuing shake-out of the more speculative propositions on the market as economic conditions stress all but the most solid business plans.”

Many of the largest AIM companies at the end of 2007 were real estate holding and development groups, which were 11 of the 50 largest companies. In 2008 many of these companies had shrunk in value, so only five of the top 50 companies were in this sector.

The top 50 now include insurance, biotechnology, gambling, food wholesale and internet retail.