You may be surprised to learn that eight companies on the AIM market are now worth more than £1bn each. The top company, ASOS (ASC:AIM) is even big enough to be part of the FTSE 100, should it ever decide to switch its listing to London’s Main Market.
AIM is considered to be a market for junior companies, providing a platform for them to grow.
We discuss the strengths of the AIM market in the new issue of Shares. Follow this link to read that article and discover our top picks for growth, income and momentum.
As a bonus article to complement our analysis of AIM, we now take a closer look at the eight largest companies on the junior market.
| 1 | ASOS | £4.6bn |
| 2 | Abcam | £1.8bn |
| 3 | Boohoo.com | £1.7bn |
| 4 | Fevertree Drinks | £1.7bn |
| 5 | Burford Capital | £1.5bn |
| 6 | Hutchison China Meditech | £1.4bn |
| 7 | Breedon | £1.1bn |
| 8 | James Halstead | £1.0bn |
ASOS (ASC:AIM) is an online-only fashion retailer targeted at the social media-savvy ‘20-something demographic’. It remains a major beneficiary of the structural spending shift online.
The company continues to deliver rapid overseas growth and impressive UK sales progress at a time when domestic UK apparel retailers are struggling.
ASOS recently upgraded (12 Jan) full year 2017 sales growth guidance to a 25-30% range following a strong four months to the end of December, giving the share price another upwards nudge.
A smaller pure-play online peer is Boohoo.com (BOO:AIM). Its meteoric rise reflects similar trends. Stellar growth is being delivered at home and overseas, including in the notoriously tough-to-crack US market.
Analysts recently upgraded their earnings estimates yet again following a pre-close update (28 Feb) from consistently cash generative Boohoo, revealing continued positive momentum in the final two months of its financial year.
Premium carbonated mixers star turn Fevertree Drinks (FEVR:AIM) has rapidly become one of the junior exchange’s biggest businesses by market value. It was worth £154m when joining the stock market in 2014. The value has since increased 11-fold to £1.7bn.
Fevertree is riding a renaissance in the popularity of gin in particular and securing market share gains with supermarkets, bars, hotels and restaurants.
A big overseas earner, Fevertree also has an asset-light, outsourced production model that means it is very cash generative and pays a progressive dividend.
Burford Capital (BUR:AIM) features in the new issue of Shares as one of our top stocks to buy. Read the article to discover why we like the AIM giant.
Hutchison China Meditech (HCM:AIM) is a biopharmaceutical company aiming to become a global leader in therapies for oncology and immunological diseases.
Aggregates group Breedon (BREE:AIM) reported a decent set of full year results earlier this week with 43% rise in revenue to £454.7m and pre-tax profit up 50% to £46.8m.
James Halstead (JHD:AIM) is a flooring expert. Its share price has gone up by 52% over the past two years.
