Latest news with #PatisserieValerie
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
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
Daily Mail
29-05-2025
- Business
- Daily Mail
One wedding cake costs £10 from Sainsbury's… the other is from a top bakery - so can YOU tell which is which?
They're both three-tiers, covered in delicious buttercream icing, and decorated beautifully. However one of these show-stopping cakes is £27 from a luxury bakery, while the other is a homemade creation with a price tag of just £10 - but can you spot the difference? The more expensive, but equally beautiful creation, is from UK-based bakery chain loved by influencers and foodies alike, Patisserie Valerie. Meanwhile the other is home made, using three Sainsbury's sponge cakes for a tenner, which is similar to what you could find at a premium vendor. UK content creator Lyre took to her TikTok account, @theleggofamily, to showcase how she created the stunning delicacy using just Victoria Sponge Cakes from the supermarket. The mother-of-one who often shares creative money saving hacks on her platform, revealed the cake can be used for any celebration and it's simple to do. For the thrifty creation, which is decorated with gold cake toppers, Lyre explained that she bought three boxes of Taste the Difference Victoria Sponge Cakes for £2 each from the supermarket using Nectar prices. She also bought vanilla cream icing, which cost £3, and gold cake toppers from Temu. The influencer also revealed she previously purchased a cake decorating kit from TikTik shop which helped her with the process, but this wasn't essential. She described her hack as: 'Budget-friendly and perfect for birthdays or any special occasion.' In the clip, which racked up more than 280,000 views, Lyre began by getting a cake stand and removing the cakes from their packaging. She sliced the curved top off each of the cakes so they could neatly be stacked on top of each other. The savvy mother then put a layer of Vanilla Buttercream-style icing in between each cake to keep them in place and to add extra filling. She then spread the icing around all of them, creating one large three-tierd structure. Next, she used an icing scraper to smooth out the icing and a piping tool to decorate the edges. Many were really impressed with the professional looking creation and rushed to the comments. One person wrote: 'Does it stay upright without any support? l can't bake at all so might give this a go!' To which Lyre replied: 'Yes!! Make sure you put it on the fridge after 1st coat of icing for one hour then do 2nd coat of icing then fridge it.' Another asked: 'So how much were the decorations ? And how long did it take you from start to finish including washing up cleaning after you ,also actually going to buy it all too, people don't think about all that.' 'To make it didn't take me long as well prolly 15-20 mins max!' Lyre said. 'But I put it in the fridge for one hour after first icing then did another icing again.' Another added: 'Only seeing this now after we paid our deposit for our wedding cake in August.' A fourth penned: 'Perfect for when you don't have time to bake, also saves time on the washing up.' Many were really impressed with the professional looking creation and rushed to the comments One also expressed: 'I think this is great if you can't cook but wanna still do a cake you have the knowledge in crumb coating get the betty Crocker cake mix so easy.' However for nearly three times the price, but less of the hassle, you could opt for the Ultimate Raspberry Ripple Cake, which is three layers of sponge, raspberry cream and raspberry jam filling with white and pink buttercream from the popular bakery. It comes after another woman revealed how she transformed four chocolate mud cakes from the supermarket into a spectacular 30-something birthday cake. The mother-of-two, from Australia, bought the chocolate cakes from Woolworths before decorating them with stunning pink buttercream flowers and hearts. The incredible tip has been described as 'the best supermarket hack yet' with hundreds of home cooks commenting on the design. The mother posted photos of the cake transformation on Facebook and said the cake was much larger than she expected once it had been completed. She bought a 30-something cake topper for the dessert which she paired with a golden palm frond as the key decorations. The cake was coloured in rose pink, lavender and gold tones, which impressed the others in the group. 'Your cake has left me speechless, just how? What an excellent cake designer,' one woman applauded on the post. The woman posted a series of pictures, including recipe screenshots, to explain exactly how she managed to decorate the cakes so well. 'Thank you for giving such good instructions, so people like me can attempt a hack like this,' one woman marveled. Other pretended to be upset with the amazing effort. 'This group has no room for actual talent, go away,' one mum laughed. The mother used some of the cake in heart-shaped molds and said the cake was 'so moist' she just rolled it up inside without needing to use icing to stick it together. She also used silicon molds to make tiny chocolate blocks and used different sized chocolate balls covered in pink and purple chocolate to add to the the effect of the tower.
Wales Online
13-05-2025
- Business
- Wales Online
Sainsbury's major change in stores has sweet treat lovers 'gutted'
Sainsbury's decision to ditch food item from stores leaves shoppers 'gutted' The supermarket has axed a popular dessert range from its stores, with shoppers told not to expect it back Supermarket shoppers will have noticed the change if they enjoyed the sweet treats (Image: Chris Ratcliffe/Bloomberg via Getty Images ) Sainsbury's customers have been told not to expect to see a popular fresh dessert line on the shelves anymore. The confirmation came after a customer asked online and received information straight from the supermarket about the decision to discontinue the range. Patisserie Valerie, known for its cakes, pastries, and continental desserts, had partnered with Sainsbury's since 2017. Initially available in select bakeries, Patisserie Valerie's offerings soon expanded to hundreds of stores across the country. The partnership featured some of Patisserie Valerie's most sought-after items, such as the Salted Caramel and Chocolate Bombe, Strawberry Gateau, Baked Cheesecake Slice, and celebratory cakes like the Triple Chocolate Delight. However, these delights are set to vanish from Sainsbury's aisles. A customer, @Paigemwhitehead, reached out on social media, asking: "@Sainsburys, do you still sell the Patisserie Valerie range?" The supermarket's official account replied: "Hi there, unfortunately, this range has been discontinued." Another shopper discovered the disappearance of the dessert range from the stores, reports the Mirror. They wrote: "Oh no! The Patisserie Valerie counter in Sainsbury's has gone! #gutted". Content cannot be displayed without consent Article continues below Searching for these goodies on Sainsbury's website doesn't bring up any results. Even if you stumble upon a page through Google, the cakes are listed as 'out of stock'. Shoppers need not feel completely left out, though. Patisserie Valerie continues to operate its standalone cafés and offers a UK-wide cake delivery service through its online platform - but the convenience of nipping into your local Sainsbury's for their treats will be no more. This news follows Sainsbury's announcement that it will shut down its remaining patisserie, hot food and pizza counters by early summer. This decision is part of Sainsbury's efforts to refine the shopping experience for its customers in-store. Shoppers won't see the cakes in store any more, a spokesperson confirmed (Image: TOLGA AKMEN/AFP via Getty Images ) Industry experts at Ceres report that Sainsbury's executives are implementing these changes as part of a "cost-cutting initiative aimed at simplifying its operations". This strategy encompasses more than just the discontinuation of certain products. Sainsbury's is also piloting its own version of scan-and-shop technology, which shoppers might already recognise from Asda and Tesco stores. Currently, this trial involves only two supermarkets and eliminates the need for traditional checkout lanes. Article continues below Customers can simply pay, print their receipt or opt to have it emailed, then return the scanning device to the designated SmartShop stations before exiting the store. The feature already exists in the Sainsbury's app, but this move would open it up to more customers. That test is still ongoing, with a further rollout of the scheme not yet confirmed.
Daily Mirror
13-05-2025
- Business
- Daily Mirror
Sainsbury's shoppers 'gutted' as popular dessert range quietly axed
Fans might not be aware after the supermarket quietly confirmed the news in an online post Sainsbury's shoppers have been told not to expect a popular dessert range to be seen in store any more. The news was confirmed after a curious shopper posed the question online and was told about the supermarket's decision. Patisserie Valerie is a British café and bakery chain that sells cakes, pastries, and continental-style desserts. Sainsbury's and Patisserie Valerie partnered as early as 2017, and the company's cakes and gateaux were available in a handful of bakeries before rolling out to hundreds of stores nationwide. It sold some of the brand's most popular treats, including the Salted Caramel and Chocolate Bombe, Strawberry Gateau and Baked Cheesecake Slice, alongside celebration cakes such as the Triple Chocolate Delight. But, the cakes are set to become non-existent, at least in supermarket stores. A user called @Paigemwhitehead took to X to ask: "@Sainsburys do you still sell Patisserie Valerie range?" The official supermarket responded with: "Hi there, unfortunately, this range has been discontinued." Another shopper also found out that the dessert range was being scrapped from stores. They wrote: "Oh no! The Patisserie Valerie counter in Sainsbury's has gone! #gutted" Searching on the Sainsbury's website offers no results for the sweet treats. If you do manage to find the page via Google, the cakes are listed as 'out of stock'. However, shoppers do not have to miss out completely. Patisserie Valerie runs standalone cafés and delivers cakes across the UK through its online service. However, the convenience of popping into your local Sainsbury's will no longer be an option. The decision comes after the supermarket announced it would be closing its remaining patisserie, hot food, and pizza counters by early summer. The move comes as Sainsbury's attempts to streamline the supermarket shopping experience for its in-store customers. According to Ceres, Sainsbury's bosses are making these moves as a "cost-cutting initiative aimed at simplifying its operations". It is part of a wider strategy that goes beyond just axing some items for sale. Sainsbury's is also trialling its version of scan and shop, which is already common in Asda and Tesco. Only two supermarkets are involved in this test, which sees customers without a traditional checkout lane. Instead, customers simply need to pay before printing the receipt or having one emailed to them. Shoppers then return the handset to the designated SmartShop ports and leave.
