Lots of people have been talking about the green shoots starting to emerge in the economy. Some are even saying – boldly, let's hope not rashly – that the worst is behind us. If the Aim index and the value of Aim secondary fundraisings are anything to go by, however, there may be some merit in what we are being told.
What is clear is that the Aim of the future is going to be fundamentally different from the Aim of the past. Gone are the days of small start-ups seeking a quick admission to Aim raising a few hundred thousand pounds. This is just not the sort of investment the institutions are looking for these days. In the last nine months, we have seen the Aim index up by a staggering 64% (that means it has risen a third faster than the FTSE over this period) and the average company on Aim is now worth £38m.
Many of the smaller companies on Aim (those worth less than £5m) have delisted in the last 12 months and the majority of those have been UK-based. While this is clearly a factor in pushing up average company values, it has also improved Aim's worldwide footprint. Aim now boasts, by number of companies, a 40% overseas membership.
So, while average values continue to grow, geographical spread widens and sentiment improves, we may, indeed, be seeing some green shoots.
One thing should be beyond doubt: with Xavier Rolet, the London Stock Exchange's new chief executive, standing firmly behind it, Aim's future is assured.
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