Take AIM in the North-East

Sep 13 2007 By Andrew Mitchell, NStar

WE are delighted to be co-sponsors of Take AIM, along with The Journal and the London Stock Exchange.

The event, hosted by TV’s Peter Snow, will be held at The Sage Gateshead on Thursday September 27.

Over the past 20 years or so, AIM has provided a significant motor for the growth of the UK economy, enabling ambitious, high-growth businesses to secure the capital they need to realise their potential.

Some 2,200 companies have been quoted on AIM over that time, raising a total of £24bn. Today, AIM features some of the most exciting young businesses in Britain, as well as over 200 foreign companies, drawn to AIM as the global “growth market of choice”.

High-growth companies, in particular, have found in AIM a market which better suits their capital-raising needs than the main market of the London Stock Exchange and the AIM now represents a diverse portfolio of businesses, ranging from high risk technology start-ups to major utilities and energy companies.

Market capitalisation ranges from less than £5m to £1bn plus.

Many AIM companies have used their shares to make acquisitions. Others have raised finance for overseas expansion, others to develop innovative products and technologies.

Most have enjoyed significant benefits as a result of listing on the market, not only in terms of their ability to access capital but also in terms of increased credibility and visibility within the markets they serve.

As we all know, the North-East is home to many successful and innovative businesses, not least Sage, the UK’s only FTSE 100-listed software business.

However, by any benchmark (population, GDP, number of businesses) our region has proportionately fewer companies listed on the stock exchange than other areas of the
UK, such as the West Midlands, the North-West, Scotland or the South-East.

In particular, the statistics indicate that local businesses have so far failed to take advantage of the enormous growth in AIM over the past 10 years.

Of course AIM is not the right option for all businesses. Many high-growth companies are able to finance themselves organically, using their own cash flow.

Others are able to use trade finance or bank lending. Some prefer venture capital,
provided by business angels or institutions.

However there is now a great deal of evidence that AIM-quoted companies generally perform better than their unquoted equivalents in terms of generating growth, profits and new jobs.

What’s more, they are much more likely to make acquisitions and to expand overseas.

In addition, a strong roster of locally based AIM or stock exchange-listed companies creates many other benefits for a region – the development of a robust local professional and financial services sector, for example, and greater visibility for local business with investors and the press alike.

Market research has shown clearly that a lack of awareness and information, as well as the relative scarcity of local role models, has in the past contributed to the low level of ‘take up’ of AIM on the part of North-East businesses.

For all these reasons, NStar, The Journal and AIM have teamed up to support Take AIM, an event designed specifically to help ambitious entrepreneurs and management teams who want to know whether an Initial Public Offering (IPO) on AIM might be the right step for their business.

It is probably fair to say that in the past, events designed to promote AIM have tended to focus on the mechanics of the IPO process – dealing with issues such as taxation, corporate governance, regulatory concerns etc.

Whilst these are important areas, Take AIM will instead seek to tackle the key strategic and commercial issues which are of fundamental concern to any entrepreneur or management team considering a flotation.

Here are just a few of the questions we hope to discuss:

:: Why should I float in the first place?
:: How can AIM help me to realise my goals for the business?
:: AIM versus venture capital – what are the pros and cons?
:: If I float, will I lose control of my business?
:: How much will it cost? What can go wrong?
:: How do I prepare my business for an IPO?
:: How do I make the most of AIM? What strategies can I follow?
:: What about the investors – what do they want from me?

The Take AIM audience will hear from successful local entrepreneurs who, in their different ways, have used an AIM flotation to expand their businesses. We will also
hear from the marketing director of AIM itself and, on the other side of the fence, from a leading investor in AIM-listed companies.

There will also be an opportunity for informal networking with fellow entrepreneurs and advisers at the post-event drinks reception, overlooking the Gateshead Millennium Bridge.

We hope that this event will bring about a step-change in the profile of AIM within the North East’s business community and we look forward to welcoming you to The Sage Gateshead on September 27.

Tickets are priced at £50 plus VAT per delegate, which includes refreshments. For
bookings contact Julie Moorhouse (0191) 201-6119 or email julie.moorhouse@ncjmedia.co.uk.