Celebrating 25 Years Ambition Growth Resilience London Stock Exchange Group London Stock Exchange Group (LSEG) Is a Global Financial Markets Infrastructure Business
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Celebrating 25 years Ambition Growth Resilience London Stock Exchange Group London Stock Exchange Group (LSEG) is a global financial markets infrastructure business. Its diversified global business provides valuable services for a wide range of customers focusing on Information Services, Post Trade and Capital Markets. The Group supports global financial stability and sustainable economic growth by enabling businesses and economies to fund innovation, manage risk and create jobs. The Group can trace its history back to 1698. In Capital Markets, the Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (a European fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants unrivalled access to Europe’s capital markets. In Information Services, through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with c.$16 trillion in benchmarked assets. The Group also provides customers with an extensive range of data services, research and analytics through The Yield Book, Beyond Ratings, SEDOL and RNS. Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and UnaVista, our trade reporting business LSEG Technology delivers robust, scalable, high-performance technology including broker, exchange, market data, risk and collateral management, surveillance, clearing and settlement products to customers around the world. LSEG Technology’s solutions are used by financial market infrastructure and financial services firms, including the Group’s own markets. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 5,000 people. Further information on London Stock Exchange Group can be found at www.lseg.com. The Group’s ticker symbol is LSE.L 02 AIM 25: Celebrating 25 years CONTENTS 04. Introduction 16. AIM’s global reach Nikhil Rathi, CEO, London Stock The diversity and international Exchange Plc & Director of reach of AIM companies and the International Development, LSEG investor base 06. AIM today 19. The AIM ecosystem The composition of AIM, by AIM’s ecosystem makes a geography and industry sector significant contribution to supporting business growth 09. The economic impact of AIM 21. AIM’s future role Creating jobs, driving productivity Marcus Stuttard, Head of UK and exports Primary Markets, LSEG & Head of AIM 12. 25 years of supporting Case studies growth and resilience 08. RenalytixAI Providing ambitious, scaling 13. The Pebble Group businesses with a platform to access 15. Diaceutics long-term, permanent capital 18. Beeks Financial Cloud 20. team17 25. SMS AIM 25: Celebrating 25 years 03 Introduction A SIGNIFICANT ANNIVERSARY DURING AN UNPRECEDENTED TIME SUPPORTING COMPANIES THROUGHOUT CHANGING BUSINESS AND ECONOMIC CYCLES, AIM HAS BECOME THE MOST SUCCESSFUL GROWTH MARKET IN THE WORLD. For the past 25 years, AIM has details that contribution. By providing provided a resilient platform for companies with earlier access to public growth companies to raise equity equity capital than many other capital capital. Supporting companies markets, AIM has played a key role in throughout changing business and supporting economic development and economic cycles, AIM has become employment, enabling companies to the most successful growth market fund innovation and export growth. in the world. AIM’s success is in no small part due From the start of the COVID-19 to its ability to attract a broad range pandemic, AIM has enabled companies of quality companies and investors. It to respond swiftly and positively to the provides investors with access to high- challenges. From January to May 2020, growth opportunities in an appropriately 158 companies raised over £1.9bn in regulated environment and promotes the NIKHIL RATHI follow-on capital on AIM, including 27 allocation of capital towards the most CEO, LONDON STOCK healthcare companies – many of which productive companies. By enabling retail EXCHANGE PLC & DIRECTOR OF INTERNATIONAL are leading research into treatments and institutional investors to access DEVELOPMENT, LSEG for COVID-19 – that raised over £195m. growth, AIM plays a vital part in the The ability of the public equity markets nation’s wealth creation process. to mobilise capital rapidly and at scale Since its inception in 1995, the market has been remarkable. And through our has supported over 3,800 companies, partnership with PrimaryBid, a new and has evolved to suit business and channel has also opened, enabling retail economic cycles. Its ecosystem of investors to participate more easily in support, with its diverse and committed equity offerings. base of investors, has enabled companies Through its constant support of to flourish, currently attracting ambitious and growing businesses, businesses from 79 countries across AIM has made a vital economic the globe. Combined, these companies contribution to the UK. This report have raised £118bn; 39% at admission and 61% through further fundraising, highlighting the long-term nature of support provided by investors to “By providing companies with earlier companies on the market. access to public equity capital than The significance of this to the UK economy should not be understated. many other capital markets, AIM AIM companies’ ability to efficiently has played a key role in supporting raise long-term patient capital enables them to support growth and economic development and create employment, benefitting the wider economy. In 2019 alone, they employment, enabling companies to contributed £33.5bn Gross Value Added fund innovation and export growth.” (GVA) to UK GDP and directly supported 04 AIM 25: Celebrating 25 years 3,800+ £45.4bn £72.4bn NUMBER OF RAISED AT RAISED IN COMPANIES AIM ADMISSION BY FOLLOW-ON FUNDING HAS SUPPORTED AIM COMPANIES BY AIM COMPANIES SINCE 1995 SINCE 1995 SINCE 1995 more than 430,000 jobs. They made a tax This is a remarkable economic contribution of £3.2bn to the Exchequer. contribution – and one London Stock Over the past five years, the direct Exchange is very proud of. However, this economic contribution made by AIM contribution goes further and broader. companies has grown by 35%, from Over recent months, we have been £24.8bn, and their employment numbers proud of the many achievements of have grown by 22%. The ripple effect of AIM companies that have been in the a vibrant AIM is striking. When economic frontline of the battle against COVID-19; activity through their supply chains and from biotechnology companies seeking the expenditure of employees in their cures and treatments, to manufacturers local economies is taken into account, pivoting their capabilities to produce the overall economic impact of AIM personal protective equipment for companies is even larger – equivalent to healthcare workers. £67.2bn in GVA and over 900,000 jobs. The road ahead has many uncertainties. AIM companies create jobs, drive The global economy is having to adapt productivity, and foster innovation and to the impact of COVID-19. The UK is exports. They are more productive – their reframing its international relationships GVA per job is £77,700, compared with and its approach to climate change. the national average of £56,387. Over the But, as we describe in this report, the last 10 years, AIM companies have grown process of becoming and remaining a their overseas sales from £7bn in 2010 to public company creates more resilient, £12.4bn in 2019. This is a strength that sustainable businesses that are capable of will be particularly important as the UK scaling and achieving their full potential – reviews its trading relationships around rewarding their employees, investors, the globe over the coming period. stakeholders and the wider economy. AIM 25: Celebrating 25 years 05 AIM today AIM TODAY UTILITIES THE COMPOSITION OF AIM, BY GEOGRAPHY AND INDUSTRY. 2% TELECOMMS 3% Since its inception in 1995, AIM has at admission and further fund-raising has CONSUMER STAPLES supported more than 3,800 companies. amounted to £72.4bn, highlighting the 3% AIM has adapted to meet the changes long-term nature of support provided by REAL ESTATE 3% in the global economy and evolving investors to companies on the market. investor appetites, and it has always In every year since 2007, the amounts covered a broad range of sectors. of follow-on capital raised on AIM have It is home to companies from 79 been significantly larger than those countries and has provided access to raised on admission: during this period, long-term capital for UK companies. 73% of all funds have been raised in Taken together, they have raised £45.4bn follow-on rounds. Fig 1: Composition of AIM by region 170 18 INCORPORATED OVERSEAS SEE PAGE 16 FOR AIM’S GLOBAL REACH 13 3 43 48 26 77 16 31 293 24 101 Sources: London Stock Exchange, Factset 06 AIM 25: Celebrating 25 years Fig 2: AIM by industry (i) No. of companies as of 31/12/2019 (ii) Market cap as of 31/12/2019 UTILITIES UTILITIES 2% 0.6% TELECOMMS CONSUMER 3% STAPLES CONSUMER 1% STAPLES REAL ESTATE 3% 2% REAL ESTATE INDUSTRIALS TELECOMMS FINANCIALS