Jim Durkin

Jim Durkin

"The UK is fortunate to have the world’s most successful growth market in AIM"

Commentary by Jim Durkin,
CEO, Cenkos

Cenkos is proud to once again be sponsoring 1000 Companies to Inspire Britain, which showcases some of the UK’s leading growth businesses. Since inception in 2005, Cenkos has raised over £19bn of equity capital for growth companies, a number of which have featured in this report. We firmly believe that equity financing is the most appropriate source of funding for growing businesses, as it enables business owners to react quickly to changing markets, without the burden of capital repayments. The UK is fortunate to have the world’s most successful growth market in AIM. Over 800 companies are trading on AIM and benefitting from being at the heart of the global finance community. AIM was designed for small and medium-sized enterprises (SMEs) and has appropriate regulation and a wide range of institutional and other investors. Companies admitted to AIM gain access to a deep pool of capital, which is unavailable for many smaller private companies. Even with a challenging backdrop, over £13bn has been raised since 2018 through initial public offerings and secondary issues.

We know, and indeed have demonstrated throughout this year, that quality growth companies with credible management teams are able to gain access to capital from equity investors, regardless of market conditions. Even with the considerable challenges of Brexit and COVID-19, this remains the case. Investors will support SMEs, which continue to be the major employers in the UK and play such a crucial part in the growth of our economy.

At Cenkos, we pride ourselves on forming long-lasting relationships with our corporate clients and connecting them with supportive shareholders. Cenkos is broker to approximately 100 companies listed on AIM and the Main Market, which range in size from less than £5m to over £1bn. For smaller companies, venture capital trusts and enterprise investment schemes continue to support young, knowledge-intensive businesses and provide a wider pool of patient capital. If you are considering how best to fund the next stage of your company’s growth, it may well be that accessing the equity markets in the UK is the best option for you. We would be delighted to have an informal, no obligations call or meeting to explore matters.