AIM’s best companies of 2024: shortlist revealed

The 2024 AIM Awards dinner will be held in London on 10 October and the shortlist for the awards was announced on 12 September. Here are the runners and riders.

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Best investor communication

Automotive testing systems supplier AB Dynamics (LSE:ABDP)is a consistent favourite of the jury. It was the winner in 2020 and was on the shortlist last year. Transport optimisation software and service provider Tracsis (LSE:TRCS)was also on the list in 2023 and, despite uncertainties in the rail sector, has performed steadily in the past year.

Vet practices operator CVS Group (LSE:CVSG)has managed to keep investors informed at a time of uncertainty because of the Competition and Markets Authority (CMA) investigation into the household pet sector.

Defence business Cohort (LSE:CHRT) has arranged site visits and reported continuing contract wins on the back of the conflicts and political uncertainties around the world.

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Human challenge studies provider hVIVO (LSE:HVO)is growing by adding new clients and studies. It has kept investors up to date with new contracts, the order book and revenue guidance.

Bars operator Loungers (LSE:LGRS) has been one of the more upbeat companies in the sector and it continues to roll out new sites – 36 in the past financial year. Management believes that the number of sites could be more than doubled to 665.

Best guess: CVS Group

Best use of AIM

Cavendish Financial (LSE:CAV) was formed through the merger of two brokers: finnCap and Cenkos.

Onward Opportunities Ltd (LSE:ONWD) has been successful in spotting investment opportunities among undervalued AIM shares and its net asset value (NAV) has been increasing at a time when the market as a whole has not performed well. NAV was 116.3p/share at the end of June and rose to 122.5p/share by the end of August.

FRP Advisory Group Ordinary Shares (LSE:FRP)joined AIM in March 2020 and used the quotation to add business restructuring and corporate finance business. This has broadened the geographic coverage.

Mixed signal ASICs developer EnSilica (LSE:ENSI)has utilised the quotation to increase its profile and win new design contracts, as well a raising working capital from share issues.  

There are two companies that are also on the AIM transaction of the year shortlist. The Property Franchise Group (LSE:TPFG), which has acquired two AIM rivals among other acquisitions, and SigmaRoc (LSE:SRC), which has become a significant player in the UK and European building materials market having been a shell one decade ago.

Best guess: The Property Franchise Group

Best technology

Surgical endoscopy products developer Creo Medical Group (LSE:CREO)and real-time digital coupons and loyalty products provider Eagle Eye Solutions Group (LSE:EYE) were on the shortlist last year. Earlier this year, Creo Medical raised cash that will be used for further development and commercialisation of its minimally invasive electrosurgical devices.

Ruggedised embedded computer products developer Concurrent Technologies (LSE:CNC) chief executive Miles Adcock joined the company in 2021. He reviewed strategy and new products are being developed and commercialised more quickly. Concurrent Technologies is also moving up the value chain by offering systems that combine different plug-in cards.

Management process automation software provider ActiveOps (LSE:AOM) is investing in artificial intelligence that will help to automate more processes and provide further opportunities for clients to reduce their cost base. ActiveOps is cash generative.

US hospital accounts software provider Craneware (LSE:CRW) has built up a strong market share in its niche.

SaaS-based transport management technology developer Microlise Group Ordinary Shares (LSE:SAAS) offers a range of modules to its fleet clients. These can help reduce fuel usage, cut maintenance and lower insurance costs. Churn rate is less than 1%. Nottingham-based Microlise continues to invest heavily in developing software.

Best guess: Creo Medical

Vet practices operator CVS Grouphas kept investors informed amid the CMA investigation into the household pet sector.

Diversity Champion

This is a difficult one to assess. There are a broad range of businesses in the running. Builders’ merchants Lords Group Trading (LSE:LORD), fluid power products distributor Flowtech Fluidpower (LSE:FLO), promotional products supplier Pebble Group Ordinary Shares (LSE:PEBB), advertising agency M&C Saatchi (LSE:SAA), employee benefits provider Personal Group Holdings (LSE:PGH) and digital mental health services provider Kooth Ordinary Shares (LSE:KOO).   

Best guess: Kooth

AIM transaction of the year

There were some significant deals during the year. Young & Co's Brewery Class A (LSE:YNGA) boosted its managed pubs operations by acquiring City Pub Group for £162 million in cash and shares. At the time, this increased the number of pubs owned by 50 to 279.

The Property Franchise Group (LSE:TPFG)made an agreed bid for rival franchised lettings company Belvoir. The offer valued Belvoir at 277.4p/share based on a TPFG share price of 344p. The share price has risen since then. The deal was described as a merger, but the TPFG management took control. The acquisition boosts market share, provides cost savings and enhances the financial services offering.

Concurrent Technologies (LSE:CNC)acquired the aerospace and military divisions of Phillips Machine & Welding Company for $3.375 million (£2.64 million) in cash and shares. It supplies rugged systems that use plug-in cards sourced from Concurrent Technologies. This will provide greater access to the US market and cross-selling opportunities.

Building materials supplier SigmaRoc (LSE:SRC)purchased the European lime assets of CRH, which took a 15% stake. The total consideration for the lime assets was $1.1 billion in cash and shares and the transaction was in three phases.

GlobalData (LSE:DATA)agreed the sale of a 40% stake in its healthcare division to Inflexion and received £434 million from the deal. This moves GlobalData into net cash, which will finance acquisitions and share buybacks, and pointed out the undervaluation of the group.

Medical technology company AOTI Inc (LSE:AOTI) has developed products that help to heal wounds by focusing oxygen on chronic wounds. It is also on the newcomer of the year award shortlist.

Best guess: SigmaRoc

AIM corporate governance

This is another award where it is difficult to assess how the choice is going to be made. Workwear and linen rental company Johnson Service Group (LSE:JSG), Keystone Law Group Ordinary Shares (LSE:KEYS), Pebble Group Ordinary Shares (LSE:PEBB), Sanderson Design Group Ordinary Shares (LSE:SDG), market research provide System1 Group (LSE:SYS1) and Tatton Asset Management (LSE:TAM)are on the shortlist.   

Best guess: Tatton Asset Management

Young & Co's Brewery boosted its managed pubs operations by acquiring City Pub Group for £162 million in cash and shares.

AIM growth business of the year

Airline and tour operator Jet2 Ordinary Shares (LSE:JET2)and cosmetics supplier Warpaint London (LSE:W7L) are also in the running for the company of the year. Loungers (LSE:LGRS) is in the best use of AIM category.

Ashtead Technology Holdings Ordinary Shares (LSE:AT.)has been one of the most successful new admissions of the past few years. It increased interim revenues by 61% to £80.5 million and underlying pre-tax profit by 39% to £19.6 million. Organic growth was 16%, which was better than the market. The subsea equipment rental company has increased net debt to £72 million as it invests in its rental fleet and makes acquisitions. Full year pre-tax profit is expected to be £39.5 million.

Antenna technology developer Filtronic (LSE:FTC)has developed a range of e-band solid-state power amplifier products, and it is winning significant contracts with the likes of SpaceX.

Energy supplier Yu Group (LSE:YU.)is growing strongly although lower energy prices have reduced monthly average bookings and that will hit operating margins. The full year pre-tax profit forecast is £44.5 million.

Best guess: Ashtead Technology

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Best newcomer

This is the shortest list with four companies. Not much of a surprise given the paucity of new admissions. AOTI Inc (LSE:AOTI)is also on the transaction of the year award shortlist. US-based AOTI has operations in California, Galway and Bournemouth. The company has developed an at-home therapy device to deliver oxygen topically into chronic wounds, including diabetic foot ulcers and pressure ulcers. The share price has held steady.

European Green Transition (LSE:EGT)was set up to acquire mining and processing projects that will help with the transition away from fossil fuels. The initial asset is the Olserum rare earth element project in Sweden, where a drill programme was recently completed. Potential investments are a copper tailings recycling project in Cyprus and a peatland carbon sink programme in Donegal. The share price has been at a premium to its 10p placing price since flotation.

Helium explorer Helix Exploration (LSE:HEX) shares remain at a significant premium to the 10p placing price. However, it lost some of its initial gains earlier this month. It reported that activities will pause for one month at Clink 1 on the Ingomar Dome project in Montana, as it mobilises a rig to set intermediate casing over an area where there was caving of shale that compromised the stability of the well bore.

Low-sodium salt developer MicroSalt (LSE:SALT)was spun out of AIM-quoted Tekcapital (LSE:TEK), which remains the majority shareholder. MicroSalt halves sodium consumption with the same level of flavour. A patented spray-drying process produces micron-sized salt crystals. The smaller crystals adhere better to food and dissolve faster on the tongue. At one stage, the share price was more than treble the 43p issue price, but subsequently fell back although it remains at a premium.

Best guess: Helix Exploration

Cosmetics firm Warpaint London is up for three awards and, after a tough period, has been growing strongly with multiple forecast upgrades in the past year.

Entrepreneur of the year

Henrik Bang of Netcall (LSE:NET)moved from an executive role to non-executive at the beginning of 2024, but he is responsible for building up the customer engagement software business over the past two decades. Netcall itself has been on AIM since 1996.

Mobile payments and messaging services company Fonix Ordinary Shares (LSE:FNX) is much newer, having floated four years ago and, unlike others joining AIM at that time, the share price has risen by around 150%. Rob Weisz joined the company more than 10 years ago. In April, he sold 1.25 million shares at 225p each. He still has a 6.1% stake.

Yamin Mo Khan has built hVIVO (LSE:HVO)into the world leader in human challenge trials. It is targeting revenues of £100 million by 2028.

Paul Hogarth is chief executive of Tatton Asset Management (LSE:TAM)and he launched the Paradigm Partners subsidiary. The company has a strong record of growth of assets under management.

Sam Bazini and Eoin MacCleod of Warpaint London (LSE:W7L) are jointly nominated. The cosmetics company is up for two other awards and, after a tough period, it has been growing strongly with multiple forecast upgrades in the past year.

Louis Hall of Cerillion (LSE:CER)was on the shortlist last year. The telecoms software provider continues to grow impressively.

Best guess: Yamin Mo Khan of hVIVO.

AIM company of the year

Beeks Financial Cloud Group (LSE:BKS) is the only company not up for another award. There is growing interest in its managed cloud computing services from larger organisations. It recently signed a multi-year contract extension with the Johannesburg Stock Exchange, which will use its technology in a second data centre. The share price has risen from 50p to 256p over seven years.

Cerillion (LSE:CER), Jet2 Ordinary Shares (LSE:JET2)andRenewi (LSE:RWI) were all on the shortlist last year. Telecoms and operations support software supplier Cerillion won a $11.1 million, five-year contract a Southern African company. This shows the international reach and the fact that it can win large contracts, having won a slightly larger contract last year. Four-fifths of clients have been with Cerillion for more than five years. In less than nine years the share price has risen from 76p to £16.95 – and that is after profit-taking.

Airline and tour operator Jet2 has bounced back from the tough days when there were restrictions on travelling and is investing in new aeroplanes. Canaccord Genuity raised its 2024-25 pre-tax profit forecast from £523 million to £535.5 million.

Engineering services provider Renew continues to benefit from its focus on regular maintenance spending. It has moved into the electricity transmission sector through the acquisition of Excalon, which provides construction services for high voltage and extra high voltage infrastructure.

Warpaint London (LSE:W7L)shares have been reaching new highs this year. Following tough years in 2019 and 2020, pre-tax profit has rebounded strongly, and it is set to soar to £23.5 million this year. Warpaint London has focused on core brands, such as W7 and Technic. It has been getting more of its branded products into retailers in the UK and internationally.

Tatton Asset Management (LSE:TAM)increased assets under management 27% to £17.6 billion in the year to March 2024. Net inflows have been running at £900 million each month. The five-year AUM target is £30 billion.

Best guess: Cerillion

Andrew Hore is a freelance contributor and not a direct employee of interactive investor.