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.