Shares in Scottish AIM firms up 10%

Shares in Scottish AIM firms up 10%

Shares in Scottish companies listed on the Alternative Investment Market (AIM) rose by 10.14% during the first quarter of 2016, bucking the UK trend.

Accountants and business advisers BDO LLP report that there were 24 Scottish AIM listed companies in the first quarter, with a combined value up £160m on the end of Q4 2015.

The Scottish figures were driven by big increases in value of three companies during the first quarter, which offset declines in some firms.

The largest increase was achieved by Smart Metering Systems, on the back of a near 60% rise in pre-tax profits and a 27% jump in revenue.

Castle Street Investments saw its value increase by £23m following two acquisitions, whilst Faroe Petroleum’s market cap rose by more than £140m.

Craig Martin, corporate finance director with BDO, commented: "Given the volatility of all listed markets at the start of this year it is an extraordinarily good performance that Scotland’s AIM listed companies should have come out of this period showing growth of over 10% in their market caps.

“The number of Scottish AIM listed companies remains quite low and it is a source of funding that more businesses should consider as the markets pick up. For the right businesses it is a valuable and viable market and should be considered a potential option for ambitious owners of businesses pursuing growth strategies.

External equity markets, whether listed capital or private equity, remain highly liquid at the moment and raising equity can support high quality companies in achieving rapid growth and allow them to become the big future employers and investors in our economy.”