AIM in 2024: biggest companies, trades and liquidity
It’s been another tough year for smaller companies, but it’s not all bad news. Award-winning AIM writer Andrew Hore looks at the state of AIM, most-traded shares and the best ways for a company to improve liquidity.
31st December 2024 09:02
by Andrew Hore from interactive investor
Liquidity on AIM has fallen for a third year in a row both in terms of value and number of trades. There have been some takeovers of more frequently traded companies, but there is undoubtedly a decline in trading activity, although that decline has slowed.
Uncertainty about the general election in July and then the fears concerning the ending of inheritance tax (IHT) relief for AIM shares did not help, but there is a lack of appetite for smaller company shares in general.
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The number of companies on AIM has fallen from 753 to 688 over the past year. The number has fallen below the level it was at the end of October 2002, but trading levels are much higher.
The decline in numbers is not a surprise considering there have been only 13 new admissions this year, including readmissions. Although the amount raised is up from £57 million to £315.4 million, that is predominantly down to the £200 million raised by building materials supplier SigmaRoc (LSE:SRC) at the time of its readmission at the beginning of the year following the acquisition of lime assets from CRH.
AIM was valued at £69.6 billion, so the average size of a company is just over £100 million, which is slightly lower than at the end of 2023 and the lowest since 2018.
Currently 63.1% of AIM’s value is accounted for by 75 companies valued at more than £250 million. That is a slightly lower percentage than one year ago.
By the end of November 2024, the total value of trades during the year was £43.7 billion, compared with £50.2 billion for the whole of last year. It is unlikely that the difference will be made up during December, especially because the number of full trading days is lower. This figure peaked at £99.8 billion in 2021.
The average daily volume so far in 2024 is £186.9 million, which is the lowest figure since 2016. Back in 2021 it was £394.6 million.
It is the same story for the number of trades, which is 8.67 million so far this year, down from 9.89 million in 2023, on the way to less than 50% of the 20.3 million trades in 2021.
The average daily number of trades is 37,063, down from 39,416 in 2023 and 80,267 in 2021. Again, this year’s figure is the lowest since 2016.
However, month by month the average daily trades appear to be flattening out. The worst average was 33,635 in August, which can be a quiet month. The most recent two months have averaged more than 38,000 trades/day – 38,274/day in November - making it five out of 11 months that are above 38,000 trades/day.
This compares with a peak of 47,939 trades/day in April 2023 and a low of 32,355 trades/day in August 2023. There appear to have been a steadier trend in the past 17 months with potential for a gradual recovery. It is unclear whether the trend appears more positive in recent months because of activity related to tax planning around the Budget.
Companies
In the latest monthly figures, the top 20 AIM companies were responsible for nearly 346,000 trades, which accounted for 43% of trades on AIM during the month. In the previous November, the top 20 generated more than 279,000 trades, which was 37% of trades in the month. This indicates that the more liquid shares are increasingly dominating trading.
There are 11 companies that are still in the top 20 12 months later. There are always circumstances that mean individual shares attract the attention of investors for certain periods, so there is always going to be change. Jet2 Ordinary Shares (LSE:JET2), Yellow Cake Ordinary Shares (LSE:YCA) and Burford Capital Ltd (LSE:BUR) remain the top three most-traded AIM shares. Retailer Boohoo Group (LSE:BOO) has slipped from fourth place to seventh.
Outsourced video games services provider Keywords Studios has been taken over, while translation services provider RWS Holdings (LSE:RWS) and Helium One Global Ltd Ordinary Shares (LSE:HE1) have dropped out of the top 20 but are still among some of the most active shares. Other companies that are no longer in the top 20 are Premier African Minerals Ltd (LSE:PREM), Johnson Service Group (LSE:JSG), Kodal Minerals (LSE:KOD), Victoria (LSE:VCP), Learning Technologies Group (LSE:LTG) and Quantum Blockchain Technologies (LSE:QBT).
Central Asia Metals (LSE:CAML) is the most-traded new entrant in the top 20 at number five, followed by YouGov (LSE:YOU) in seventh. Pan African Resources (LSE:PAF), Volex (LSE:VLX), Ashtead Technology Holdings Ordinary Shares (LSE:AT.), Pantheon Resources (LSE:PANR), SigmaRoc, after its CRH deal, Nexxen International Ltd (LSE:NEXN) and Next 15 Group (LSE:NFG).
Name | Price | Market cap (m) | Price change 1-month (%) | Price change 2024 (%) |
1571.5p | £3,373.80 | -2.6 | 25.8 | |
1040.5p | £2,253.30 | -1.8 | -14.2 | |
236p | £2,017.00 | -18.6 | -16.6 | |
1532p | £1,467.20 | -2.8 | 36.1 | |
184.75p | £1,444.00 | -9.0 | -5.7 | |
491.7p | £1,066.30 | -10.0 | -20.5 | |
82.3¢ | € 916.40 | -2.5 | -17.7 | |
345.5p | £871.10 | -7.9 | 26.1 | |
6.2p | £810.90 | -11.4 | -37.1 | |
72.65p | £809.90 | -6.9 | 36.0 | |
2215p | £784.30 | -5.7 | 26.6 | |
670.5p | £782.70 | -2.2 | -36.1 | |
97.85p | £775.30 | 6.9 | 20.8 | |
175.5p | £759.60 | -4.6 | -14.0 | |
931p | £736.90 | -11.0 | 8.4 | |
34.325p | £696.60 | -4.5 | 104.0 | |
181.6p | £669.50 | 19.3 | -27.6 | |
834p | £598.30 | 4.3 | -50.4 | |
8540p | £567.30 | 1.4 | -6.4 | |
135.7p | £562.50 | -2.8 | -4.2 |
Source: ShareScope. Data as at 27 December 2024.
Average daily value
The average daily value of trades provides some indication of the liquidity of AIM companies. Data from ShareScope.co.uk shows that there are 226 companies with an average daily trading value of more than £100,000 over a period of 250 days, including 34 companies with an average daily value of more than £1 million.
AIM companies with the higher average daily value of trades are the larger companies. The top two companies are Jet2 and Yellow Cake, while Burford Capital, which also has a New York Stock Exchange listing, has the 11th-largest average of £2.4 million/day.
The average daily value of trades as a percentage of the company’s market capitalisation provides another indication. However, it depends on the market capitalisation used. The figures in the table use the current market capitalisation, but it will have changed over the year.
An example of how this can affect the percentage is YouGov. The share price has halved over the past year following a profit warning in June. If the market capitalisation were averaged out during the year, then the percentage would be lower than 0.9%
Marlowe (LSE:MRL) spun off occupational health services provider Optima Health (LSE:OPT) in September and that is currently worth £130 million. That means that the Marlowe’s market capitalisation was much higher for most of the period. That will explain part of the reason why there has been an average of 1.1% of its market capitalisation.
Optima Health has an average of daily trade value of £151,000 over 250 days, but it has not been around for 250 days. Measured over 60 days the average is more than £600,000. However, even over 60 days, 0.8% of Marlowe is traded on average each day.
Although the number of trades in Premier African Minerals has fallen the average daily value of trades is 2.3% of market capitalisation. Again, the share price has fallen by three-quarters, but liquidity is still significant.
By average daily value
Company | Average daily value (£m) | Exchange Market Size (£) | Daily value/Mkt cap % |
7.8 | 11,805 | 0.2 | |
6.7 | 14,532 | 0.6 | |
4.4 | 8,080 | 0.9 | |
3.5 | 4,650 | 0.2 | |
3.4 | 2,472 | 0.6 | |
2.8 | 2,003 | 0.4 | |
2.8 | 3,130 | 1.1 | |
2.7 | 13,120 | 0.5 | |
2.55 | 19,560 | 0.3 | |
2.41 | 3,878 | 0.6 |
Source: ShareScope. Average daily value over 250-day period.
Market size
Exchange Market Size (EMS) is a measure of average traded value of an individual share. It is equivalent to the minimum quotation value for market makers. This is an indication of liquidity.
According to ShareScope.co.uk, the AIM company with the highest EMS value is programmatic advertising services provider Nexxen International, which also has a Nasdaq listing. It plans to ask shareholder permission at its AGM to leave AIM and change its Nasdaq listing from ADRs to ordinary shares. Trading has been positive, and investors have not been spooked by the proposed AIM departure with the share price continuing to rise.
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South African gold producer Pan African Resources is the next highest and it reported a 30% increase in full year profit to $78.8 million and it could soar to more than $200 million in the year to June 2025. Cash generated will help the miner move into a net cash position by 2026.
Filtronic (LSE:FTC) is winning orders in the space and telecoms sectors for its equipment. A follow-up order from SpaceX for E-band solid-state power amplifier modules for Starlink satellites is worth £6.4 million. There have been multiple forecast upgrades over the past year. At the beginning of 2024, a pre-tax profit of £1.4 million was forecast for the year to April 2025. This was recently upgraded to £9.6 million. Currently, £8 million is forecast for 2025-26, but that will change with more contract wins.
This indicates that one of the best ways for a company to improve its liquidity is to be successful and please the market. That will gain investor attention.
Companies with an EMS of less than £200 tend to be tiny and have disappointed investors with numerous poor trading statements, such as Inspiration Healthcare Group (LSE:IHC) and Xeros Technology Group (LSE:XSG).
By EMS
Company | Average daily value (£m) | Exchange Market Size (£) | Daily value/Mkt cap % |
1.1 | 29,213 | 0.2 | |
1.0 | 25,838 | 0.2 | |
0.6 | 23,175 | 0.3 | |
0.4 | 22,800 | 0.4 | |
2.2 | 22,300 | 0.3 |
Source: ShareScope.
Andrew Hore is a freelance contributor and not a direct employee of interactive investor.
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