How has Aim’s testing 2022 changed the nature of the index? Inevitably, the typical company is somewhat smaller than it used to be. At the start of this year, the average market capitalisation of a top 100 company was £660mn. By the end of the third quarter, that figure had fallen to £405mn. The drop has been even more pronounced for the Aim UK 50 Index, where the average company value has slumped from £785mn to £471mn.
This drop has at least pushed up the dividend yield on the Aim 100, from a negligible 0.9 per cent to a more respectable 1.8 per cent. True, that pales into comparison with government bond yields nowadays. But payouts have been growing at a healthy rate, and in September our Bearbull columnist highlighted a clutch of decent Aim dividend prospects, several of which feature in the top 100.
Growth remains the watchword for Aim companies, however, and contrasting fortunes this year have produced some notable changes in position in our top 100. Most visible in the top half is the ascension of Serica Energy (SQZ) from 62nd position to 16th. A trio of very different industrial support services firms – Alpha FMC (AFM), iEnergizer (IBPO) and Smart Metering Systems (SMS) – have also made notable moves higher. Six companies from last year’s top 50 have been or are about to be taken over.