Latest news with #AIM
The Independent
12 hours ago
- Business
- The Independent
Stocks dip as Bank of England leaves interest rates unchanged
London's FTSE 100 closed lower on Thursday amid ongoing Middle East concerns, after the Bank of England left interest rates unchanged at 4.25%. The FTSE 100 index closed down 51.67 points, 0.6%, at 8,791.80. The FTSE 250 ended 216.27 points lower, 1.0%, at 21,073.99, and the AIM All-Share fell 5.17 points, 0.7%, at 758.19. The London Stock Exchange celebrated the 30th anniversary of AIM on Thursday, calling it a 'cornerstone' of the UK's capital markets. Since its launch in 1995, AIM has become one of the world's most successful growth markets, helping more than 4,000 companies raise over £136 billion. The decision to hold rates by the Bank's Monetary Policy Committee was widely expected, although the vote split was slightly more dovish than forecast. The MPC voted 6-3 for the status quo, with Swati Dhingra, Bank deputy governor Dave Ramsden and Alan Taylor preferring a 25 basis point rate cut to 4.00%. The Bank said there remain 'two-sided' risks to inflation meaning 'a gradual and careful approach to the further withdrawal of monetary policy restraint remains appropriate'. The Bank noted that higher food prices could raise 'inflation expectations, impacting wage and price-setting behaviours'. Bank of England governor Andrew Bailey said interest rates remain on a 'gradual downward path'. Ebury analyst Matthew Ryan said: 'The BoE still appears to be in no hurry to speed up the pace of policy loosening. Importantly for markets, the phrase that cuts will be both 'gradual and careful' was retained in the statement – there was some speculation that this could be either tweaked or jettisoned.' ING noted past experience has shown that the vote split contains few useful signals. 'December's meeting saw a similar 6-3 vote, yet heralded little change in the bank's overall stance,' ING said. It added that rate hawks will have an eye on oil prices. A 'serious spike in oil prices is the most obvious hawkish risk for the UK rate outlook', ING said. Nonetheless, ING expects the Bank to cut interest rates in August. The oil price rose again amid concerns the situation in the Middle East could worsen. Brent oil traded higher at 78.59 US dollars a barrel late on Thursday from 75.06 dollars on Wednesday as the Israel-Iran conflict continued. The oil price rise boosted oil majors and FTSE 100 heavyweights BP and Shell, which rose 1.4% and 1.1% respectively, but weighed on British Airways owner IAG, down 3.2% and low-cost airline easyJet, down 3.0%, on concerns of rising fuel costs and travel disruption. Israel's defence minister Israel Katz said Iran's Supreme Leader Ayatollah Ali Khamenei cannot 'continue to exist', days after reports that Washington vetoed Israeli plans to assassinate him, AFP reported. 'Khamenei openly declares that he wants Israel destroyed – he personally gives the order to fire on hospitals,' Mr Katz told journalists. 'Such a man can no longer be allowed to exist.' US President Donald Trump wrote on Tuesday that the US knew Mr Khamenei's location but would not kill him 'for now'. Uncertainty surrounds Mr Trump's next move amid reports that the US is ready to intervene in the conflict. Bloomberg on Thursday reported senior US officials are preparing for the possibility of a strike on Iran in coming days. In European equities on Thursday, the Cac 40 in Paris closed down 1.1%, as did the Dax 40 in Frankfurt. Financial markets in the US were closed to mark Juneteenth National Independence Day. The pound was quoted down at 1.3429 dollars at the time of the London equities close on Thursday, compared with 1.3472 dollars on Wednesday. On the FTSE 100, fears the Middle East conflict will lead to higher inflation and slower economic growth weighed on mining stocks. Anglo American fell 3.3%, Antofagasta declined 3.4% and Rio Tinto dipped 2.5%. Whitbread fell 1.6% after reporting total group sales fell by 3.8% to £710.9 million in the 13 weeks that ended May 29, the first quarter of its financial year, from £739.2 million a year earlier, or by 1% on a like-for-like basis. Total UK sales were down 5.4% to £648.2 million from £685.2 million. Accommodation sales fell 1.8% to £485.0 million from £494.1 million, while food and beverage revenue sales dropped 15% to £163.2 million from £191.0 million. UK revenue per available room fell 2.4% to £62 in the quarter from £63.54 a year ago. On the FTSE 250, Hays plunged 10% after saying it expects annual profit to be below market consensus, as the staffing firm grapples with challenging market conditions. AJ Bell's Russ Mould said the share price slump implies the jobs market is going from bad to worse. 'Companies are clearly worried about the economic outlook and they're reluctant to take on full-time staff, potentially not replacing anyone lost to natural turnover. At the same time, individuals are worried that if they move job they'll be in the 'last in, first out' firing line if companies look for new cost savings,' he added. Hays said permanent recruitment markets have been particularly damaged, amid 'low levels of client and candidate confidence'. Simon Lechipre, analyst at Jefferies, said the weaker than expected performance is particularly negative for Page Group where permanent recruitment makes up 72% of group fees. Shares in PageGroup fell 8.8% while Robert Walters dropped 4.8%. Hays expects annual pre-exceptional operating profit of £45 million, below company-compiled consensus of £56.4 million. The yield on the US 10-year Treasury was quoted at 4.39%, stretched from 4.36%. The yield on the US 30-year Treasury was quoted at 4.89%, widened from 4.86%. Gold was quoted lower at 3,368.94 dollars an ounce against 3,387.84 dollars. The biggest risers on the FTSE 100 were Melrose Industries, up 13.70p at 499.9p, BP, up 5.5p at 392.0p, Bunzl, up 28.0p at 2,250.0p, Shell, up 28.5p at 2,695.5p, and Vodafone, up 0.6p at 75.9p. The biggest fallers were Persimmon, down 50.0p at 1,317.0p, Antofagasta, down 60.0p at 1,699.0p, Anglo American, down 68.5p at 2,021.5p, IAG, down 10.2p at 309.3p, and Airtel Africa, down 5.4p, at 171.2p.
Daily Mail
a day ago
- Business
- Daily Mail
Embrace risk to boost growth, pleads boss of London's struggling AIM junior market
The boss of London's beleaguered junior market, AIM, has said the UK needs to 'embrace' risk to boost economic growth, as it marks its 30th anniversary today. Marcus Stuttard said that over the last decade British investors had become too 'risk-averse', which meant they were less likely to take bets on smaller companies and newer technologies. He told the Mail: 'We all recognise that we need higher [economic] growth rates. 'But in order to generate that we have got to celebrate and back the people who take risks – the entrepreneurs, the founders that start these companies and grow great businesses.' He added that investors needed to recognise that achieving 'much higher returns' from investing also meant the potential for losses. 'We need to accept that and embrace it,' he said. AIM – short for Alternative Investment Market – is a sub-division of the London Stock Exchange (LSE) that was founded in 1995. But it has struggled amid a sharp fall in the number of firms on the market. Some point to disappointing returns. At the same time the wider London market is facing an exodus of firms being taken over or moving their listings overseas. AIM has listing rules which are less strict than those of the LSE's main market. It means smaller companies with less cash can still list on the stock exchange. But after a peak of 1,694 firms on AIM in 2007, the number is now around 650 as the appetite for smaller and higher-risk companies among investors has declined in favour of fast-growing US tech stocks. It was also dealt a blow in October when Chancellor Rachel Reeves announced inheritance tax relief on stocks in firms on the market would be slashed from 100 per cent to 50 per cent from next April – discouraging people from holding shares in smaller companies to save on tax bills. 'You would think a Chancellor who talks often about 'growth mission' and wanting to see increased investment in UK domestic assets would be a full throttle champion of AIM, but this is not the case,' said Jason Hollands, managing director at wealth manager Evelyn Partners. He added that while AIM's anniversary 'might be considered a cause for celebration' – with the market raising £136billion for more than 4,000 companies since its inception – it is now seeing tougher times. Luke Barnett, head of tax advantaged investments at St James's Place, said: 'Recent years have been challenging as it has underperformed the FTSE main market and missed out on the broader market rebound. Despite attractive company valuations, investor appetite has waned.'
Business Wire
2 days ago
- Business
- Business Wire
CyberSheath Launches Revamped CMMC CON Ninja Training Program as Compliance Enforcement Intensifies
RESTON, Va.--(BUSINESS WIRE)--Defense contractors face mounting pressure to meet CMMC 2.0 requirements. The Department of Justice's intervention in False Claims Act cases involving NIST 800-171 violations shows that inadequate protection of controlled unclassified information now carries financial and legal risks beyond just losing contracts. Against this backdrop, CyberSheath has redesigned its popular ninja training program to focus on practical compliance execution. Registration is open now through July 18, 2025. The free program now features three intensive courses built around the company's proven AIM methodology: Assess, Implement, and Manage. Those who complete all three courses will earn recognition on the wall of fame at CMMC CON 2025 on Sept. 25, 2025, the closing of the two-day event. 'Contractors who thought they could delay CMMC preparation are now seeing real enforcement consequences, and this program helps them overcome that obstacle,' said Eric Noonan, CEO of CyberSheath. 'Our revamped training gives organizations the tactical knowledge they need to build genuine, audit-ready compliance programs.' Led by Casey Lang, CyberSheath's Vice President of Compliance, the streamlined program eliminates theoretical discussions in favor of hands-on guidance. Participants work through the three phases that determine compliance success: White Belt – Assess: Understanding your current security posture and mapping compliance gaps Blue Belt – Implement: Building and deploying effective security controls Black Belt – Manage: Maintaining ongoing compliance and assessment readiness Courses launch the week of July 21, with participants earning belts through completion of practical assessments. The training program complements CMMC CON 2025, which features the theme 'Compliance Blueprint – Plan. Execute. Certify.' Register for the two-day virtual conference and the ninja training program. About CyberSheath Established in 2012, CyberSheath is one of the most experienced and trusted IT security services partners for the U.S. defense industrial base. From CMMC compliance to strategic security planning to managed security services, CyberSheath offers a comprehensive suite of offerings tailored to clients' information security and regulatory compliance needs. Learn more at
Scotsman
2 days ago
- Business
- Scotsman
Does it still make sense to invest in AIM 30 years on?
There were high hopes when London's Alternative Investment Market was set up, so how is it doing? Adrian Murphy reveals all Sign up to our Scotsman Money newsletter, covering all you need to know to help manage your money. Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... The world was a very different place when London's Alternative Investment Market (AIM) launched during June, 1995. Perhaps, then, it should be no surprise that three decades on there are legitimate questions over its future viability and its suitability as an investment proposition. Originally conceived as a sub-market of the London Stock Exchange, AIM's main purpose was to provide smaller, potentially high-growth companies with access to capital without the cost and regulatory requirements attached to listing on the main market. Later, AIM shares were given 100% exemption from inheritance tax (IHT) provided they were held for two years, in a bid to incentivise investors. Advertisement Hide Ad Advertisement Hide Ad But, it is difficult to say AIM has been a massive success on either front – particularly with the IHT relief being reduced to 50% from April next year. While the likes of Ladbrokes owner Entain have graduated to the main market over the years, the number of companies doing likewise has been diminishing. And AIM itself has been shrinking – the index had nearly 1,700 constituents at its peak, but today that has fewer than 700. AIM was conceived as a sub-market of the London Stock Exchange (Picture: Henry Nicholls/AFP via Getty Images) From an investment perspective, returns have also been poor – the FTSE AIM 100 sits far below its 2007 and 2021 peaks, and has delivered paltry returns over most timeframes. This has all but negated the IHT benefits offered to investors – in the majority of cases, you would have been better off investing elsewhere for a better return and paying any IHT due. Part of the reason for these performance issues is the profile of the companies on AIM. Their size has meant that trading isn't necessarily daily, leading to liquidity issues and the lower barrier to entry inevitably makes them riskier investments – in turn, rendering many unsuitable for the average investor and even less so for those in later life. Equally, investing in AIM means taking a highly concentrated bet on the UK. Combined, all UK indices account for just 3% of the global market – and the FTSE All Share represents that vast majority of that figure. Advertisement Hide Ad Advertisement Hide Ad While small-cap companies have tended to outperform their larger peers over the long term, there are other fund and ETF options which can provide that type of exposure without the risks that come with AIM – whether specifically in the UK or globally. Even the FTSE Small Cap could prove a more suitable choice, with superior historical returns – although these are no guide to future performance – and more diligence over the companies of which it comprises. There are more sustainable alternatives to AIM, says Adrian Murphy For investors with an eye on passing down wealth, capital preservation and income should be front of mind. And there are businesses that invest in infrastructure, renewable energy, and smart metering that may not have the allure of fast-growing companies, but have similar tax advantages and provide stable levels of income without the downside risk. If you're investing with IHT in mind, there are more sustainable alternatives to AIM. Weigh up your options and remember that the tax tail shouldn't wave the investment dog – don't let the opportunity to reduce a tax bill sway you away from a more suitable choice for your circumstances, which would ultimately more than likely deliver better post-tax returns in the long term.
Yahoo
2 days ago
- Business
- Yahoo
Why the UK's AIM is struggling 30 years on
The UK's alternative investment market (AIM) has seen some major successes since its inception 30 years ago but has struggled to attract and retain companies in recent years. Launched on 19 June 1995, AIM was set up to help smaller and high-growth companies get more access to capital. When it started out, the UK's junior market comprised of just 10 companies, with a total market valuation of £82m. Eleven of the companies that joined AIM in its first six months of existence are still on the UK stock market today and eight of those companies are still on the junior market today, according to AJ Bell (AJB.L). Since launch, AIM has helped more than 4,000 companies raise nearly £136bn. Well-known companies that started out on AIM include travel company Jet2 (JET2.L), online retailer ASOS (ASC.L) and drink mixer producer Fevertree (FEVR.L). While AIM has produced a number of successes, it has also had its fair share of failures. That includes "cash shell" Langbar International, which claimed to have £370m in bank deposits but collapsed in 2005 after discovering these funds were non-existent. Another high-profile example was the collapse of cafe chain Patisserie Valerie in 2019 on the back of an accounting scandal. Such disasters have led to AIM being described as the "Wild West", though it is said to be the most active growth market in Europe, with 45% of the capital raised on European growth markets over the past five years raised on AIM, according to the London Stock Exchange (LSE). Read more: Bank of England expected to hold interest rates as oil prices rise and UK growth falters In addition, an analysis conducted by Grant Thornton found that, in 2023, AIM companies contributed £68bn in gross value added to the UK economy and supported more than 770,000 jobs. Even so, AIM has had a challenging time in recent years and research has suggested that its troubles are set to continue. According to investment bank Peel Hunt (PEEL.L) and Aberdeen Investments, AIM is set to shrink by a fifth this year, as 61 companies representing £12.3bn of market capitalisation have announced plans to leave the junior market — either to move to the main market, to delist or because they've been subject to mergers and acquisitions (M&A). If all of these moves go ahead, AIM is set to shrink by 20%. 'AIM was once a thriving market, but it has been brutally knocked back by outflows in recent times," said Abby Glennie, co-manager of the Abrdn UK Smaller Companies Fund and the Abrdn UK Smaller Companies Growth Trust plc (AUSC.L). "As a result, we're seeing many of the biggest and best AIM companies moving to a main market listing." She added: "Eventually we will be left with a tiny, illiquid market. That's fine for small, individual investors but will make it very hard to get large-scale institutional money into the growth companies of tomorrow. "In that scenario, we need to be asking: how are we going to nurture the next generation of big UK companies?" With that in mind, experts shared why AIM is struggling and what could be done to help revive the junior market and resolve these issues. Jason Hollands, managing director at Bestinvest by Evelyn Partners, said that the sharp decline in companies on AIM largely "reflects a wider malaise facing European markets for small and medium sized growth stocks in recent years, as well amplifying the broader headwinds 'unloved' UK equities have faced." "Let's not forget that there has been a dearth of IPOs on the London Stock Exchange's main market too in recent years, with a steady stream of UK companies moving their listings overseas to markets like NASDAQ (^IXIC) and the NYSE where they can command higher valuations due to deeper pools of capital," he said. Hollands added that there have also been a number of public-to-private transactions by private equity firms, which are able to pick up UK-listed businesses on low valuations. "AIM has been at the sharp end of these trends, magnifying the effect given the lack of investor appetite for small, illiquid UK companies amid an environment where passives have grown in popularity," he said. Hollands explained that tracker funds don't touch very small companies, so the trend towards index funds "sucked away capital from this part of the marked as actively managed funds have battled relentless outflows". Instead, he said that the focus has been on a relatively small group of mega-cap growth US stocks — the "Magnificent 7", which is made up of Nvidia (NVDA), Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Tesla (TSLA), Amazon (AMZN) and Meta (META). In addition, Hollands said that smaller companies have had to contend with the impact of the pandemic, the cost of living crisis, along with increases in financing costs as interest rates and bond yields rose. Stocks: Create your watchlist and portfolio Nicholas Hyett, investment manager at Wealth Club, said that AIM's "recent struggles are due in part to powerful macro-economic trends affecting public markets all over the world, however they've been compounded by a series of unfortunate own goals." Firstly, he highlighted that the rise of venture capital and private equity has meant that public markets are playing a smaller part in fundraising globally. He pointed to data from law firm White & Case, which showed that initial public offerings raised $126bn in 2024 — a marginal increase on 2023, though that is well below the $211bn raised in 2018. "Companies just don't want to list on stock markets to raise money any more," said Hyett. "Staying private is lower cost and significantly less hassle than accepting the scrutiny that comes from being a public company." In addition, Hyett said AIM had also struggled with a number of "political own goals — most notably around the inheritance tax (IHT) benefits associated with AIM companies." "IHT relief has been a key driver of AIM ownership — creating a reason for individual investors to hold shares in AIM listed companies that they might not otherwise consider — providing a stable investor base that might not otherwise invest in smaller UK companies," he explained. Read more: What you need to know about UK's private stock market Pisces Historically, if investors held AIM shares for at least two years at the time of death, they would be exempt from IHT because they qualified for business property relief. However, changes to IHT in the autumn budget meant that the rate of relief was halved from 100% to 50%, meant that AIM holdings will be subject to 20% tax for those with estates above their nil-rate allowances. Bestinvest's Hollands said: "While this was not the worst outcome, it has reduced the attraction and the recent leaking of a memo of tax proposals by [deputy prime minister] Angela Rayner, included scrapping all IHT relief on AIM, will renew speculation at a time when concerns are mounting that the chancellor will need to find further tax raising measures in her next budget." Indeed, Susannah Streeter, head of money and markets at Hargreaves Lansdown, said that "perception can often count when it comes to interest in certain sectors, and with this tax-benefit changing, it could still mean more investors will steer clear from these riskier investments." "With inflation creeping back upwards again and the UK economy sluggish, confidence doesn't look set to return to the market anytime soon and depressed valuations are likely to mean overseas buyers will be circling AIM quoted firms this year," she said." Bestinvest's Hollands said that one potential "ray of sunshine" could be the Mansion House Accord, which was a government agreement with the UK's largest workplace pension schemes to invest 10% into private markets by 2030, at least half of which has to be in the UK. "One can only hope that some of this might eventually find its way into AIM companies, but a lot more could be done to revitalise the market, including beefing up VCT income tax reliefs to at least 40% and quashing speculation of tampering with IHT reliefs again," he said. Stocks: Create your watchlist and portfolio Wealth Club's Hyett said that uncertainty over IHT relief "needs to be resolved and as soon as possible". "While the uncertainty remains, the flow of money into AIM will be stifled and the government risks slowly throttling the UK's growth market," he said. "Longer term, AIM faces the same challenges as the wider stock market. Steps need to be taken to encourage UK investors, including pension funds, to put money into UK companies if you want to revitalise the UK stock market." Read more: This under-claimed benefit could help boost your pension Average UK house asking price drops by more than £1,000 Why you can trust an 18-year old with their junior ISA – and how to create one
