AIM Market: A Review of Challenges and Potential Growth in 2025
Key Ideas
- The AIM market in London has faced challenges in the past year with a decline in performance and reduced attractiveness due to tax changes.
- Key themes for 2025 in the AIM market include technology, healthcare, sustainable investing, and the impact of SPACs, driving potential growth.
- Companies like Oxford Nanopore Technologies, S4 Capital, ITM Power, and Renalytix are identified as potential top performers in 2025.
- ITM Power, despite facing challenges in the hydrogen sector, is expected to benefit from the growing low-carbon hydrogen and ammonia sectors in 2025.
The AIM market in London, established in 1995 to support smaller UK companies, has faced challenges in the past year with a 4.5% decline in the FTSE All-Share AIM Index. The market was further impacted by a reduction in inheritance tax relief on AIM shares, making it less attractive to investors. However, there are signs of potential growth for AIM in 2025 driven by key themes such as technology, healthcare, sustainable investing, and SPACs.
Several companies are identified as potential top performers for 2025, including Oxford Nanopore Technologies, S4 Capital, ITM Power, and Renalytix. Despite facing struggles in the hydrogen sector, ITM Power is expected to benefit from the anticipated growth in the low-carbon hydrogen and ammonia sectors in 2025. The company's focus on green hydrogen production using renewable energy and key strategic partnerships position it well for future success. Overall, the AIM market is poised for a potential turnaround in 2025 with companies aligning with growing trends and investor preferences.