The number of companies on the Alternative Investment Market (AIM) has sunk to its lowest level since 2001 after a blitz exodus in the last 12 months.
71 companies departed London’s junior stock exchange since February 2024, according to data from UHY Hacker Young.
The number of IPOs also fell to their lowest levels since 2008/9, at just ten.
There are currently just 679 AIM-listed firms, a stark difference from the market’s peak at 1,694 in 2007.
UHY’s report said the lull was partly due to the perceived costs of an AIM listing, as opposed to raising capital through private equity.
The British Business Bank calculates it costs £600,000 to list on AIM, followed by £500,000 to maintain a listing.
Chief executive of the Quoted Companies Alliance, James Ashton, told City AM: “People are absolutely focused on these challenges.
“These are new numbers but this is not a new trend.”
He added: “We know from our membership that companies have a whole range of views about AIM, lots of them continue to do well and raise capital and create jobs, but we also know that some companies have challenges because of liquidity and costs.”
UHY said weakness in the UK economy had fuelled AIM’s shrinkage, with 21 companies citing financial stress and insolvency for delisting.
AIM IPO pipeline needs ‘jump start’
Colin Wright, partner and chairman at UHY, said: “The AIM IPO pipeline needs a jump-start.
“Cutting back on some of the regulations surrounding AIM could help provide that.
“After all, the new Government has asked regulators to take a radical approach to cutting red tape to deliver growth.”
Wright added AIM had become less competitive due to stricter rules and reporting requirements compared to its European counterparts.
He said making it easier for shares to be traded through Cash ISAs was a potential solution for market woes.
“The UK Government and the LSE needs to take measures to encourage more retail investors which should help UK families prosper by achieving higher returns than cash and in turn providing more capital to growth companies in the UK to invest in their businesses,” he added.
The research follows rumours a group of City executives had forged plans to transform AIM, as first reported by Reuters.
The group, understood to be led by former London fintech boss Jon Prideaux, want to rebrand and relaunch the junior index as the “Global Growth Exchange.”
UK outflows marked their 6th worst month on record in February, as £1.22bn poured out of funds.
A decline in IPOs and overseas acquirers of UK firms helped pedal the figure, which marked the sixth worst month on record.
In 2025 this far, there have been 11 bids worth £100m, seven of which came from overseas.
These included 5 FTSE 250 firms and 4 AIM companies.