Saturday, February 16, 2013
AIM companies surprisingly confident
LAST year was an important year for the North Eastern PLC. Over 12 months we lost five listed companies; EAGA, Wellstream, Northumbrian Water, Southern Cross and ROMAG. In it, the two businesses sold to foreign corporations - Wellstream U.S. company GE, and Northumbrian Water to Cheung Kong based in Hong Kong. Besides Arriva sold in the second half of 2010 with the German company Deutsche Bahn appears that the increase in global trade combined with the relative weakness of sterling British companies appear attractive price. Of the remaining companies in the North East 13 of them, more than half, listed on AIM. Although the company's current global economic turmoil AIM surprisingly confident about their prospects for PwC survey finds. Participants thought the AIM market has emerged leaner and fitter because of the recent shake-out of the company from the stock exchange. But companies should consider developing a 'Plan B' to address the impact of renewed recession. Thriving in the AIM report, PwC found that the average target for revenue growth over the next 12 months is 24%, some way to continue the surveys comparable FTSE 250 companies (on average 12% growth target) and private companies (an average of 18 % growth target). One in five AIM companies are looking to expand turnover of more than 50% next year, due to higher expectations may have been tempered by fears of higher market months earlier. There are some encouraging signs about profitability, but also a real danger that AIM companies use aggressive growth strategy can be obtained with the recent global macroeconomic events and fall back into recession. An important finding in the survey of AIM companies we look into new geographic markets as a source of growth seen in the U.S. (28%) and the EU (24%) as their main focus. In the euro zone difficulties recently and the issues that are taking place in the U.S. economy, I would encourage more companies to consider the AIM market of developing countries as a potential market for growth. Almost all of the companies in our survey recognized the importance of strong growth story in the win over investors. However, most felt that the maintenance of effective relationships with investors is the toughest challenges they face. 28% believe that investors are looking for greater transparency 21% of respondents think investors are looking for good corporate governance 4% of investors think wanting more diversity of their boards. Small AIM company is always easy to disinvestment in difficult economic conditions. But with a hostile market, it is essential that all AIM companies will continue to focus on effective communications market and maintain the highest possible standards of governance and transparency. The government has an important role to play in supporting investment in AIM companies which may be an important part of our economic recovery. AIM companies calling the tax system simpler, lower rates of corporate tax and labor and higher investment incentives. They also recognize the importance of a skilled workforce and recognize the investment in education as a priority for the government.