AIM Report 2019

22 23 2019 Market update / AIM in the news AIM IN THE NEWS TOP NEWS IN 2018-19 Feb AIM investors should hold their nerve despite volatility As AIM suffered a difficult start to 2018, experts cautioned against abandoning the market altogether and suggested that there remains “scope for growth at a reasonable price on AIM”, as Russ Mould, investment director at AJ Bell, put it to the Financial Times. Apr RA International set to join AIM Dubai-based remote site service provider RA International, which specialises in building and running bases for humanitarian organisations, governments and global corporations in remote parts of the world, was reported to be preparing a £100 million IPO on the AIM market. Sep AIM governance code requirement to come into force The LSE’s new rules came into force in two stages in 2018, with the later requirement for AIM companies to provide details of a recognised corporate governance code being introduced at the end of September. Those in the market were supportive of the measure, which had been designed to enhance the reputation of AIM. Oct Patisserie Valerie finds accounting errors, suspends CFO Patisserie Valerie, one of the best-known names listed on AIM, revealed ”significant, and potentially fraudulent, accounting irregularities”. It immediately suspended finance chief Chris Marsh, and warned the discovery had “significantly impacted the company’s cash position”. The firm would eventually fall into administration in January 2019. Dec AIM-ing for growth in 2019 During the difficulties seen at the end of 2018, questions were asked of the LSE’s claim that AIM is “powering the companies of tomorrow”. But AIM continued to show signs of a maturing market, with dividends less concentrated and more diversified than in the main market. Jan How Q4 ranks among the worst 20 quarters of the past half century It’s not just AIM, or even the UK, was the message from Schroders, who pointed out that a combination of factors had led to global stocks suffering their worst quarter since 2011. A range of factors, from the escalating US-China trade war, to wider concerns over global economic growth, led to the falls, they said. 2018 2019 www.ft.com/content/31cba5a0-1315-11e8-940e-08320fc2a277 www.proactiveinvestors.co.uk/companies/news/199017/ra-international-set-to-join-aim-in-100mln-ipo-at-the-end-of-june-199017.html www.accountancydaily.co/aim-governance-code-requirement-come-force uk.reuters.com/article/uk-patisserie-hldg-accounts/patisserie-valerie-owner-finds-potential-accounting-fraud-suspends-cfo-idUKKCN1MK0KD www.investorschronicle.co.uk/shares/2018/12/13/aim-ing-for-growth-in-2019/ www.schroders.com/en/insights/economics/how-q4-ranks-among-the-worst-20-quarters-of-the-past-half-century Apr Probate rule change will see ‘death tax’ on AIM shares It was suggested that proposed changes to the rules on probate could see fewer investors looking to the AIM market. Experts explained that the new banded structure for probate fees would see current Business Relief qualifying investments (including those in AIM shares) count towards the calculations for the probate fee due. The introduction of the probate changes was delayed due to the ongoing Brexit discussions in Parliament. Jun Woodford contagion reaches AIM Concerns grew that the fallout from the suspension of trading at Woodford Equity Income Fund would transfer to the AIM market, where “super star stock picker” Neil Woodford had made his name. A number of AIM-quoted companies that Woodford has invested in, mainly through his Woodford Patient Capital Trust, suffered falls in value. Jul Amati AIM VCT To Raise New Capital Amati AIM VCT announced plans to raise new capital towards the end of 2019 via a share subscription offer. Having seen no new AIM VCT raises for a number of months, Amati Global Investors’ plans offered a reminder that there remains interest in the market. It said the timing of the share offer and the amount raised will depend upon the availability of suitable investment opportunities. May Pound slides to four-month low after Brexit talks end Sterling fell on news that cross-party talks between the Conservative government and Labour opposition had collapsed. The failure of the talks effectively brought Theresa May’s time as prime minister to an end, as well as causing business sentiment to fall as the uncertainty around Brexit continued. www.telegraph.co.uk/investing/shares/probate-rule-change-will-see-death-tax-aim-shares/ www.bbc.co.uk/news/business-48309235 www.thisismoney.co.uk/money/markets/article-7115671/SMALL-CAP-MOVERS-Woodford-contagion-reaches-AIM.html www.morningstar.co.uk/uk/news/AN_1561544889120558200/amati-aim-vct-to-raise-new-capital-towards-2019-end.aspx