There’s no such thing as bad publicity

AIM Advisers Rankings Guide

All publicity is good publicity, so the saying goes. By that measure the London markets are experiencing a period of unprecedented high prominence – hardly a day passes that there isn’t an article discussing their merits in the mainstream media. That the markets, and AIM in particular, is talked about so frequently after 30 years, should be a sign of its success – it’s better than not being talked about at all, right? 

As usual when this well-known phrase is trotted out, not all the publicity is complementary. Press commentators generally fall into two camps. On the one hand, the pessimists describe a declining market with fewer and fewer IPOs than in previous years, undervalued companies and poor liquidity. On the other hand, optimists look to recent international trade deals and increased inward investment, potential changes to listing regulations, an alleged positive pipeline of companies looking to raise finance, and PE firms pregnant with investments that need an exit. The truth is probably somewhere in between these extremes. In my view, both camps underestimate the cyclical nature of the market, its longevity and resilience by focusing too narrowly on its performance over just the last couple of years.

London’s junior market, AIM, turns thirty this year. That it has survived this long is no small achievement. Other junior markets across Europe that were conceived at around the same time have largely disappeared. While AIM has been frequently criticised for some well-known ‘failures’, there are always going to be more than on a major market. AIM allows investors to take a risk and it has been incredibly successful in comparison to any other junior market.

So, what can we learn from looking back at the winners and losers on AIM over this period?

Promising companies that flopped include a number of Chinese companies that formed part of a market bubble in the late noughties. Other companies, such as, Scott-Oil & Petroleum and Premier African Minerals, initially fared very well but were unable to sustain their valuations. Often companies that ‘implode’ on AIM hang all their hopes on one brilliant asset which could result in either a boom or a bust. Even when such companies do well, they are frequently a one hit wonder and values can plummet if there are not a range of offerings to bring in different income streams. Even fast moving technology companies depend for their continued profits on the creation of next-generation products.

Well-known success stories include Jet2 and Fever-Tree. These companies managed to carve a niche in well-established markets. Crucially, their business ideas were very clear and easy to understand which was a significant help when convincing investors to invest. Companies operating in more technical or specialised sectors often have a difficult job to get investors to understand their business which makes securing investment far more of a challenge. 

These companies succeeded in getting liquidity in their stocks by attracting investors through good marketing and communication and establishing a brand name. It is far easier for an investor to buy into a company’s story when it is well communicated and visible. Obviously, that goal is simpler to achieve for companies that sell consumer goods and services that are household names, but the lesson is clear – companies that want to attract investment and maintain good liquidity need to make sure their business ideas and future plans are easily understood.

In our digital world we expect dynamic results within super-quick timescales, but good businesses need patience to succeed and grow. For that understanding to permeate amongst investors and potential investors, companies need to communicate their long-term goals and highlight their achievement of significant milestones along the way. 

Communication is key not only to the success of AIM-listed companies, but to the success of the market itself.

The FCA’s move to close the ‘advice gap’ by changing the rules around the provision of financial advice to consumers allowing firms to offer ‘targeted support’ to savers, including buying shares, will certainly help to both increase the potential pool of investors as well as broaden knowledge about the market. 

The Chancellor’s announcement in her Mansion House speech that 15 City companies have agreed to finance a “Tell Sid” 2.0 advertising campaign to promote the benefits of stock market investment and encourage savers to invest in shares will provide a welcome publicity boost.

This article was originally published in the July 2025 AIM Advisers Rankings Guide. For more information, please contact Joseph Archer.

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