Bulk of AIM firms keep IR in-house

More than half of all AIM-floated companies did not turn to agencies for IR advice as part of their IPO process, a survey has revealed.

The poll, by business advisory company Baker Tilly and law firm Faegre & Benson, also showed that overseas businesses were more likely than their UK counterparts to seek backing from an investor relations agency.

‘To make share price reflect performance, around 20 per cent of a board director’s time should be spent advising analysts and investors,’ said Baker Tilly head of capital markets Chilton Taylor.

‘AIM companies are often young and from a private background. And with the arduous flotation process, communications can get left on the backburner,’ he added.

Of the companies surveyed, 35 per cent said their CEO tended to be responsible for investor relations, with finance directors cited by 25 per cent and chairmen by 15 per cent.

The survey also showed that 83 per cent of respondents favoured internal IR management, with another third using a broker or a PR agency for advice. Half of AIM-listed companies did not believe the City followed them closely enough, and that the profile of SMEs needed raising.

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