1Spatial CEO Claire Milverton expressed apprehension over potential closure of the AIM market, essential for supporting scaling businesses.
- Milverton credits AIM with facilitating 1Spatial’s financial recovery, technological investment, and US expansion.
- AIM’s regulatory environment is viewed as beneficial for companies like 1Spatial, providing supportive shareholder dynamics.
- Recent report suggests integrating AIM with the London main market, targeting emerging tech sectors specifically.
- James Ashton emphasises AIM as a crucial alternative for growth companies not ready for the Main Market.
Claire Milverton, CEO of 1Spatial, a company listed on the AIM market, has voiced significant concern regarding discussions on potentially shutting down this stock exchange avenue. AIM has been instrumental in the success and growth of her company, which required financial expansion to develop its technology and enter the US market. Milverton firmly believes that without AIM, 1Spatial would not have achieved its current status.
Milverton highlighted the benefits received from AIM, such as avoiding the heavy regulatory burdens typically associated with traditional markets. She described the shareholder environment as supportive, attributing it to the company’s creation of transformative applications tailored to current market demands.
Amidst debates to subsume AIM into the London Stock Exchange’s main market, the Tony Blair Institute presented suggestions for a new route specifically designed for high-growth, innovative tech companies. The report criticises AIM’s failure to support scaling businesses effectively and highlights a dependency on legacy firms within the main market like those in the energy and finance sectors.
Milverton has expressed concerns that 1Spatial might suffer if forced onto the main market due to increased regulations and potential challenges in maintaining shareholder support, particularly as the company does not distribute dividends. This apprehension is accompanied by 1Spatial’s recent positive financial performance, indicating a 5% revenue increase to £16.2m and a noteworthy 18% rise in pre-tax earnings to £2m for the recent half-year.
James Ashton of the Quoted Companies Alliance has reinforced the importance of AIM, illustrating it as an essential option for growth-oriented companies not yet suitable for the more demanding main market. He warned that losing AIM could limit funding routes in the UK and constrain regulatory adaptiveness that allows for entrepreneurial shares.
The debate on AIM’s future remains heated, as stakeholders consider its impact on scaling companies and broader market dynamics.
