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AIM, where patience brings big rewards

The share price of CVS Group (LON:CVSG), the UK’s leading veterinary services business, rose strongly this week on the back of another positive trading update. CVS has been a mainstay of Fundamental AIM portfolios for many years, although it’s tested our patience on numerous occasions.

The dynamics of the UK veterinary market have changed significantly over the past few years and a shortage of newly qualified vets, combined with the rapid consolidation of the sector, has been making life harder for CVS, the UK’s largest consolidator.

We were getting particularly concerned by CVS management’s strategy of pursuing high priced acquisitions, despite the evident challenges in the sector which needed addressing. Generally speaking Fundamental is a very cautious investor in pure ‘buy and build’ business models of the sort being run by CVS. From our perspective, there comes a point when the focus needs to be on internal matters and organic growth. However, we like the defensive attributes of this sector and the management team had done a pretty good job up to now, so we were prepared to see this through.

Other investors were clearly also worried about the state of play sending the share price down sharply to a low of 362p in January 2019 from 1140p just six months earlier.

The interim results for the six months ending 31 December 2019, announced at the end of March 2019, offered a first glimpse that things were improving, with management addressing several of the key issues which had contributed to the previous underperformance.

What encouraged us more than anything was the greater reluctance to pursue acquisitions, unless the price was right, and a greater focus on organic growth. The interim results commented on an increase in the number of in-house referrals, which would benefit the group’s referral centres like Lumbry Park, which we visited in the summer and in which they had made significant investment. The growing numbers joining CVS’ Healthy Pet Club scheme, which provides care through a monthly subscription model also looked encouraging.

Results for the year ended 30 June 2019 announced in September provided further evidence that things were continuing to improve with like-for-like sales growth of 5.2%, of which 4.3% came from the core Veterinary Practices division. Earnings before interest tax, depreciation and amortisation (EBITDA), after central office costs, rose 14.5% to £54.4m.

The group’s Healthy Pet Club had 401,000 members at the year-end, an increase of 10.8% in the year, with 133% growth in their new Healthy Horse Programme to 7,000 members. These membership schemes bind the group to its clients and their pets and lifted annual monthly based subscription revenue 19% to £45.4m.

The update this week offered more encouragement with like-for-like sales increasing 8.0% in the four months to 31 October 2019 driven by a strong performance from the core Practices Division, which has seen like-for-like sales increase 7.4%.

It’s also reassuring to note that employment costs and vet vacancy rates have remained stable and only one acquisition has been made since September 2019.

The latest update cautioned that comparatives become more challenging in the second half of the current financial year given the improved second half performance seen in the previous financial year but it all sounds a lot more promising than 12 months ago.

While the shares still remain well below previous highs, they have performed strongly over the past 10 months rising over 170% from lows.

Having assessed the holding on numerous occasions over the past 18 months, our patience and ongoing commitment has been well rewarded…..up to now.

Hopefully onwards and upwards!

To find out more about other investment opportunities on AIM, the Main Market or overseas markets, contact Chris or Stephen on 01923 713890 or email [email protected]

 


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Invest in what you know – know what you invest in

The nature of investing in AIM for Inheritance Tax planning purposes is that investors must directly hold shares in the underlying AIM companies, albeit via a broker’s nominee arrangement. The Inheritance Tax planning benefits would be lost should investment be made via a fund or investment trust arrangement where the investor simply holds shares or units in the underlying fund or investment trust.

This method of direct investment has the advantage that the investor has full knowledge of exactly which stocks he or she is holding and how each is performing. This contrasts with the typical fund arrangement where normally only the largest holdings (typically the top ten) are disclosed by the fund manager.

The portfolio approach means investors are also privy to all the transaction details and therefore have full knowledge of the manager’s actions.

The suspension of the Woodford Equity Income fund, where 300,000 investors have been prevented from accessing their cash since June, has highlighted the problems with investment in open ended funds, where fund managers, administrators, custodian’s and regulators sit between investors and their money. Furthermore, investors have little knowledge of managers trading activity and the complete picture of where performance is really coming from. Indeed, the opaque nature of fund investment appears at odds with the information age in which we live and the demand for greater transparency.

While a portfolio approach is a requirement for investment in AIM for Inheritance Tax planning purposes it can equally apply to general investment portfolios. Fundamental Asset Management’s general investment portfolios, supported by our in-depth research and a good dose of common sensehave delivered excellent performance over the past few years, benefitting from exposure to some terrific companies, both in the UK and overseas. Our clients have enjoyed success with the likes of Apple, Games Workshop, Microsoft and Nestle, to name a few.

With trading costs a fraction of what they used to be and portfolios free of the additional burden of administrators fees and other excessive costs carried by funds, it’s a great time for portfolio investors.

We would argue that it’s also far more enjoyable and reassuring to have full knowledge of one’s investments and to experience the thrill of some terrific stock selections and of course the disappointment of the occasional mistake!

To find out more about our high performing portfolios call Chris or Stephen on 01923 713890


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AIM big guns falter; buying opportunity or better value elsewhere?

The shares of several of AIM’s largest, highest profile, companies have tumbled over the past few months. In this Blog, Fundamental’s Chris Boxall gives his thoughts on the lacklustre performance of some of AIM’s previous high-flyers. Could now be an excellent buying opportunity or were the share prices simply far too over-heated before.

While the fall from grace of Burford Capital (LON:BUR) has stolen the AIM headlines, several of AIM’s other £billion companies have also experienced material share price falls over the past 12 months.

Fevertree Drinks (LON: FEVR), the world’s leading supplier of premium carbonated mixers, has seen its share price slump 45% from the highs reached in August 2018 when it was basking in the perfect environment of a UK heatwave, World Cup and royal wedding. However, despite the share price falls, the shares still trade at a rather punchy 36x forecast earnings estimates for the year ending December 2019 which assume 16% growth in sales.

There is no doubting the appeal of Fevertree’s excellent products and it is a simple business to understand, however, the sky-high valuation has always left little room for error and much depends on growth outside its home UK market, which is starting to appear somewhat saturated.

Group sales in the first half of 2019 only rose 12%, which is decidedly underwhelming for a business on such a rich rating. However, 31% growth from the key US market was more encouraging with the launch of Spiced Orange and Smoky Ginger Ales set to tantalise American’s taste buds. With Fevertree already dominating its home G&T market, we remain wary that the valuation as it stands still hangs on an acceleration of growth in the US and Europe. Without the help of the mania for craft gins which helped drive growth in the UK, this looks a far trickier proposition. A cracking business and huge AIM success story nonetheless, but we are not imbibing yet.

Keywords Studios (LOMN:KWS), the technical services provider to the global video games industry, has been another soaring success on AIM, although it’s acquisition led business model is very different to that of Fevertree, whose stratospheric growth was all of its own internal making. Having acquired a large number of independent studios and underpinned by a booming sector, KWS has turned itself into a significant external development partner to leading video content creators and publishers. Sales have soared over the past few years from only €37m in 2014 to €250m in 2018, with forecasts of €319m for 2020 buoyed by acquisitions and organic growth. Much like Fevertree the shares are 45% off August 2018 highs and currently trade at a more modest 26x forecast adjusted earnings for 2019. Keyword’s acquisition led model results in plenty of adjustments to its financial statements, to the extent that it is hard for us to determine what is the likely norm going forward. We prefer companies like Fevertree where organic growth is the primary driver and have yet to be tempted by Keyword’s model.

Online fashion pioneer ASOS (LON:ASC) long held the crown as AIM’s largest company. Having slipped down to 4th place at the end of September the shares have risen 46% in October following full year results which offered much needed encouragement, pushing the market capitalisation back to £3bn moving ASOS back into second place on AIM, close behind rival Boohoo Group (LON:BOO). While the shares are more than 50% off the highs reached in January 2018 the valuation continues to challenge investors like us. With international retail sales now representing just over 60% of the group total and plenty of investment made to beef up their international operations, ASOS looks well placed to supercharge international growth. However, mass market fashion retail is hard for us to understand and we aren’t tempted to jump onboard yet.

Blue Prism Group (LON:PRSM) is a pioneer in the field of Robotic Process Automation (RPA), an emerging form of business process automation technology where a virtual workforce powered by software robots are trained to automate routine back-office clerical tasks such as form-filling and invoice generation.

Having joined in AIM in March 2016 at a share price of 78p and market capitalisation of only £48m, the shares of this much hyped, loss-making business, with revenues of only £55m in 2018, reached a high of 2635p by September 2018, pushing the market capitalisation over £1.5bn.

While revenue has grown significantly since listing, losses have also escalated as the group has increased its spending on sales and marketing in support of international growth. Revenue for the 6 months ending 30 April 2019 rose 82% to £42m, but operating losses ballooned over 500% to £35m, following material growth in sales and marketing headcount. Thankfully the business had over £100m of cash in the bank available to support this international expansion, having raised £100m in January 2019 at a price of 1100p per share.

We found it somewhat disconcerting that shortly after the material fund raise the Group’s Chief Revenue Officer decided to sell 100,000 shares (the majority of his shareholding), retaining a stake of only 50,000 shares. The subsequent sale in July 2019 of 424,000 shares by the Chief Technology Officer, netting him £6.2m, didn’t offer much comfort either.

The material share sales have been fuel for the bears pushing the share price down 67% to 866p.

While Blue Prism operates in a very exciting growth area it’s also an area which is very hard for an outsider to understand, making it extremely difficult for us to make a credible valuation judgement – just because the shares have declined more than 60% doesn’t mean they are now a bargain!

Of the above AIM heavyweights, we are keeping a close eye on Fevertree. It is highly profitable (operating margins 30%) and cash generative and operates in a sector we can understand, growing organically through its own internal development, slick marketing and expanding distribution. Unlike many of its peers, its financial statements are also mercifully free of accounting adjustments, which goes down well with us.

For further information on Fundamental’s high performing AIM portfolios please email [email protected] or speak to Chris or Stephen by calling 01923 713890.


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Stunning results from this technology star highlight the potential for investment outperformance on AIM 

dotdigital Group plc (LON:DOTD) has rapidly become one of our small cap favourites and the latest results certainly didn’t disappoint.

Founded in 1999 as a web design agency, dotdigital has developed a globally compelling product suite for email and digital marketing.

Having grown significantly since admission to AIM in 2011, when it’s market capitalisation was only £19m, its marketing automation platform is now used by over 70,000 marketers in 156 countries worldwide, empowering global marketers to achieve outstanding results. Global expansion and an expanding range of products  has seen revenues grow eleven fold over the last 8 years and the market capitalisation hit an historic high of £339m in July 2019, when the share price stood at 114p.

The group’s expansion has been boosted by it partnering with many of the leading ecommerce platforms including Magento (now part of Adobe), Microsoft Dynamics 365, Salesforce and Shopify.

Results for the year ending 30 June 2019 were stunning, with revenues rising 19% to £51.3m, including organic growth of +15%, and adjusted operating profit up 25% to £11.8m.

33% growth in adjusted earnings per share to 3.88p was even more impressive and materially ahead of consensus market expectations of 3.4p.

The group acquired Comapi in November 2017 which specialises in ‘live chat’ and has built a software platform that allows clients to communicate directly with their customers via email, SMS and social messaging apps. The Comapi technology has now been fully integrated with dotdigital’s platform, with 19% of the group’s customers using more than one channel, helping to grow average revenue per user 14% to £966 per month.

The all-important recurring revenue as a percentage of total revenue increased to 86% thereby offering excellent visibility into the future.

The key partnerships have also been strengthened with revenue through Magento up 27% to £11.8m.

Despite the ongoing impact of GDPR, revenue from the EMEA region delivered double digit growth, but more distant overseas markets were the star performers. Having initially struggled to progress in the US, the group now appears to have found its feet with revenue in this key geography rising 27% to $9.0m. The APAC region was even better, reporting revenue growth of 83% to AUS$3.8m.

dotdigital comments how innovation is at the core of everything and they are committed to the continuous evolution of the technology, reflected in the considerable investment in the period. Despite this, excellent operating cash inflow of £12.3m still resulted in free cash flow of £6.3m, boosting year end cash to £19.3m.

The outlook was extremely encouraging with the first quarter of the current 2019/20 financial year starting well.

The house broker commented how “there are few companies we can point to which consistently deliver 15% organic growth, PBT margins over 25%, and reliable cash conversion” reiterating their target price of 135p, 37% above the current share price.

Having held the shares for several years and remaining enthusiastic buyers, we would echo their comments.

To discover other exciting investment opportunities on AIM please contact Chris or Stephen at small cap investment specialists Fundamental Asset Management by calling 01923 713890 or emailing [email protected] 

 

 

 


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AIM stocks to watch after the recent rout

Three AIM stocks to watch

In this latest interview with Jeremy Naylor of IG markets, Chris Boxall, co-founder of specialist investment manager Fundamental Asset Management, discusses the performance of AIM over the last few months and introduces three companies which could present interesting buying opportunities.

While the travails of Burford Capital have dominated the AIM headlines, there has been plenty of other activity on London’s growth market and the companies discussed in the interview are worth a closer look.

You can find out more about Fundamental’s AIM portfolio service, including the latest fact sheets, from the link here.

Fundamental Asset Management has delivered exceptional investment returns investing in AIM for Inheritance Tax planning for more than 15 years.

For further information on Fundamental’s high performing AIM portfolio service, please contact Chris or Stephen on 01923 713893.

 


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AIM – the Good, the Bad and the Ugly

Investing in the shares of qualifying AIM companies can attract 100% relief from inheritance tax and is a proven tax planning method, avoiding the costs associated with a trust, or the risks associated with gifts. It’s also been a rather good investment strategy to follow, as long as you know what you are doing!

Fundamental Asset Management’s AIM portfolios can also be accessed through many leading adviser wrap platforms, including Transact, Standard Life Elevate and Nucleus, making it a viable tax planning solution for advisers who don’t want the adminstrative burden of administering assets on multiple platforms.

Supported by extensive in-house research and due diligence, we have successfully managed AIM portfolios for Inheritance Tax planning purposes since 2004, delivering outstanding growth, well ahead of mainstream funds and stock market indices. We have also helped families save large amounts of Inheritance Tax in the process.

However, it hasn’t all been plain sailing and over this period we have experienced everything that AIM has to offer, from the highs of AB Dynamics, whose shares have risen over 2500% since listing six years ago, to the lows of Patisserie Holdings, a café chain worth £400m which succumbed to a massive fraud and disappeared overnight.

We have seen it all, from the boom times of 2007, when AIM had nearly 1700 companies, to the depths of the financial crisis, which saw many investors abandon AIM entirely.

Come and join us on 2nd October 2019 at the Landmark Hotel, London (www.landmarklondon.co.uk) to find out what investing in AIM for Inheritance Tax planning purposes is really all about.

Numbers are limited so please RSVP by emailing [email protected] to reserve your place at this FREE event.
Alternatively, please call 01923 713890.

Venue: Landmark Hotel. 222 Marylebone Rd, Marylebone, London NW1 6JQ


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Crowdfunding continues to thrive, but the valuations look crazy – better value on AIM?

The latest news that leading UK based crowdfunding platform Seedrs raised a further £4.5m in a new funding round has highlighted the appeal of rapidly growing, early stage companies to UK investors, at least relative to the duller offerings on the UK stock market.

However, while there is no doubting the growth appeal of early stage businesses, we struggle to understand the high valuations many of these are achieving on the crowdfunding platforms when raising new money. In many cases money is being raised based on a mere idea, rather than a viable business. We fear this investing bubble will ultimately see small private investors lose out significantly, not simply through business failures, but as these cash consuming start-ups are subsequently forced to raise money at far more modest valuations.

A prime example of the valuation folly on crowd funding sites was recently illustrated by WeSwap, the online peer-to-peer travel money platform.

Back in November 2018 WeSwap was meeting prospective investors with a view to listing on AIM but failed to attract interest at the desired valuation. Admittedly it wasn’t a great time to list with stock markets going through one of their periodic sell-offs, nevertheless, the proposed valuation of more than £40m for a loss making business in a highly competitive arena looked crazy to us.

In 2018, WeSwap generated modest revenues of just over £1.5m with losses over £2.5m. As of June 2019, it had over 500,000 users who had exchanged more than £255m.

Fast forward 7 months and WeSwap raised a further £2.5m on Seedrs at a pre-money valuation of an eye-popping £41.6m.

Comparison can be made to AIM listed Ramsdens (LON:RFX), the diversified, financial services provider and retailer, which has its own thriving foreign currency exchange business.

For its last financial year ending March 2019 Ramsdens grew revenue 17% to £46.8m and underlying profit before tax was up 4% to £6.7m. Its foreign currency business alone served 705,000 customers, exchanging £496m of currency and generating gross ‘profit’ of £11.6m. It also rewarded shareholders with an appetising dividend of 7.2p per share, equating to a yield of 3.7% at the current share price.

We acknowledge that Ramsdens may not be growing as rapidly as WeSwap, however, unlike WeSwap it is demonstrating an ability to grow while generating profits and cash.

Many investors seem fixated that online offerings like WeSwap represent the only route to investment success. Yet the success of many online businesses is dependent on spending huge sums on marketing, much of it swelling the coffers of Google and Facebook. Contrastingly, while a High Street based business like Ramsdens addresses a much smaller potential customer base from its individual sites, its multi-faceted offering, of which foreign currency is just one element, is a beneficiary of falling rental costs.

Backers of crowd funded businesses will ultimately require an exit and a stock market listing, notably AIM, is one such route for this. Yet UK stock market investors seem very reluctant to overpay for loss-making, early stage businesses, addressing relatively small markets. It’s very different in the US, where the market is so much larger and the potential rewards thereby much greater.

While valuation concerns persist with many AIM companies, they look relative bargains compared to their peers on crowdfunding sites. Furthermore, as Sterling is set to languish over Brexit we expect to see overseas buyers keeping a close eye on modestly valued UK listed companies.

August saw our AIM portfolio holding Sanderson Group (LON:SND) snapped-up by a US based acquirer and we expect to see more over opportunistic moves of this type over the coming months.

If you are interested in benefiting from our expertise investing in AIM and smaller quoted companies, please speak Chris or Stephen on 01923 713890 or email [email protected]


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Burford Capital, AIM’s largest company, underlines its support for AIM

The interim results statement from Burford Capital (LON: BUR), currently AIM’s largest company, provided an interesting commentary on its reasons for remaining on AIM, rather than consider a move to London’s Main Market. With a market capitalisation approaching £4 billion, Burford would be close to gaining entry to the FTSE100 Index should it be on the Main Market, which would see index tracker funds be obliged to acquire shares, thereby offering a boost to the share price.

So why doesn’t Burford Capital move to the Main Market?

Burford Capital’s interim results statement comments that it hardly ever encounters potential investors who baulk at buying larger AIM stocks like Burford and companies with market capitalisation above £500 million make up around half of AIM’s total value.
Burford has broadened its shareholder registry over time to include some of the world’s largest and most sophisticated investors who are unperturbed by their choice of market.

Burford sees no evidence that it would see increases in liquidity or other trading benefits from a move to the Main Market and they already have liquidity comparable to or better than Main Market companies with similar market capitalisations to theirs.

As they concluded, the reality is that both AIM and the Main Market see corporate and governance failures at companies of all sizes – for every Patisserie Holdings on AIM there is a Carillion on the Main Market, although in the case of the latter at least investors were forewarned! Listing rules and governance codes are not the primary defences against such failures; rather, sound management, an experienced, attentive and involved Board and high-quality external advisers (and especially auditors – Grant Thornton take note) are key.

Therefore, despite its size and evident appeal to large institutional investors, Burford is unlikely to pursue a Main Market listing in the near term as they do not see the benefits exceeding the costs and disadvantages.

Fundamental does not hold shares in Burford Capital. In addition to concerns surrounding its qualification for Inheritance Tax planning purposes (Investor’s Champion AIMsearch gives a detailed explanation of this) , we remain wary of its business model where reported profits are far removed from the operating cash flow. We are also uncomfortable with the opaque nature of its accounting, where the details of litigation investments remain hidden.

For the 6 months ending 30 June 2019 pre-tax profit of $226m resulted in an operating cash inflow of only £6.7m. Add loan interest of $19m and that derisory inflow turned into an operating cash outflow of $12m. It has always been this way at Burford, which brings in substantial unrealised gains as income, something it regularly addresses in its results statement.

Other than snippets of information relating to very substantial cases such as the giant Petersen claim, in respect of which Burford has banked huge sums, we are left in the dark on the identity of its ongoing investments.

We are not alone in being concerned that, by including unrealised gains in income, there is a risk that Burford is recognising income associated with ongoing investments that may one day become losses. Furthermore, the immediate re-investment of cash generated into new claims means very little internally generated cash is ever reinvested into anything shareholders have a clue about.

We acknowledge that both IFRS and US GAAP require a wide swathe of businesses to fair value Level 3 assets (the most illiquid and hardest to value) and flow unrealised gains through their income statements, including not just Burford but firms like Blackstone and KKR.

We also appreciate that Burford is not unique in holding a significant number of Level 3 assets, however, it’s the contentious nature of these so-called ‘assets’ which are very different to the equity holdings of private equity groups. Furthermore, Burford’s contentious assets are now supported by a growing debt pile, a highly unusual scenario.

Nevertheless, up to now Burford has been a roaring success on AIM, where it seems set to remain for the foreseeable future.


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Office of Tax Simplification Inheritance Tax Review – second report: what does it really mean for AIM?

The Office of Tax Simplification (‘OTS’) published its long-awaited review on reforming Inheritance Tax. A first report released in November 2018 dealt with the administration of estates while the latest report focuses on how Inheritance Tax could be made “easier to understand and more intuitive and simpler to operate”.

The stand-out headlines in the latest report were recommendations to reduce the seven year rule for gifting assets to five years and to increase the lifetime gift allowance from the current £3,000 to something more meaningful.

The press has also been keen to jump on a mention in the report of Business Property Relief (‘BPR’) and whether the treatment of AIM shares is within the policy intent of BPR.

Paragraph 5.19 of the report states:
…in relation to third party investors in AIM traded shares, BPR is not necessary to prevent the business from being broken up or sold in order to fund the payment of Inheritance Tax. This raises a question about whether it is within the policy intent of BPR to extend the relief to such shares, in particular where they are no longer held by the family or individuals originally owning the business.

Firstly, it should be emphasised that this was only an ‘observation’ and no further reference was made to AIM in the report in the conclusions or recommendations. However, in our opinion the report makes a reasonable observation regarding AIM.

BPR has never been wholly relevant to AIM in terms of preventing a business from being broken up or sold in order to fund the payment of Inheritance Tax. The relief in respect of smaller listed growth companies, is surely in place to attract third party investment and there are indications that the Treasury has always considered it thus. This is backed up by paragraph 5.18 of the report which states:

The OTS notes that the government’s response to the Patient Capital Review consultation published in November 2017 stated the government’s commitment to protecting the important role that BPR plays in supporting family owned businesses and growth investment in AIM and other growth markets. In correspondence and meetings, the OTS has heard evidence of its importance in meeting that objective.

To reiterate, contrary to what has been suggested by some of the more sensationalist headlines in the mainstream press, the OTS report has not recommended the removal of BPR on AIM. 

However, the OTS report has recommended that estates should not benefit from Capital Gains Tax dying with the deceased if the same assets in the estate are also benefitting from an IHT relief or exemption. In this regard Recommendation 5 on page 44 states:

Where a relief or exemption from Inheritance Tax applies, the government should consider removing the capital gains uplift and instead provide that the recipient is treated as acquiring the assets at the historic base cost of the person who has died.

The Treasury has said it will respond to the report in due course and consider its recommendations.

Last year’s Patient Capital Review highlighted a huge gap in funding in the UK for smaller growth companies and the removal of BPR on AIM will only exacerbate this, therefore we remain cautiously optimistic that radical changes are unlikely.

I think it’s worth reflecting that AIM as a viable Inheritance Tax planning option would not exist at all if the investment credentials didn’t stack-up in the first place.

Our AIM for Inheritance Tax portfolios have materially outperformed leading stock market indices for many years due to the compelling growth characteristics of the companies in which we invest, which just so happen to be accompanied by an attractive tax benefit for UK shareholders.

Successful AIM companies like RWS Holdings, AB Dynamics and many others have not seen their share prices rise due to the weight of demand from those investing for IHT planning purposes, they have risen based on the performance of the underlying businesses.

The great benefit of AIM is that it is market where share registers are dominated by family, founders and senior management.

Studies from Credit Suisse, Boston Consulting Group and Bain & Company have highlighted how superior growth and returns have been a feature of family and insider-controlled companies.

The great risk with a tax change of the type feared is if it pushes executive founders to sell early and exit the business, thereby depriving it of a valuable asset. For example, both RWS Holdings and AB Dynamics have benefited from the ongoing involvement of founder shareholders; Andrew Brode, Exec Chairman of RWS, has not sold a share since the business listed on AIM in 2003.

You can find out more about our high performing AIM portfolio service from the link here


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Eight small cap stocks to watch

Eight small cap stocks to watch

In this latest video with IG markets, Chris Boxall, co-founder of specialist investment manager Fundamental Asset Management, sits down with Graham Neary from Stockopedia and Cube Investments and IG’s Jeremy Naylor, to discuss eight small caps stocks which could be worthwhile following.

Companies covered include:

Adept Technology Group (LON:ADT) – provider of managed IT services and unified communications
Duke Royalty (LON:DUKE) – provider of alternative financing solutions to corporates
H&T Group (LON:HAT) – pawnbroking, financial services and jewellery retail
PCF Group (PCF) – established lender
Park Group (LON:PARK) – multi-retailer redemption product provider
Pressure Technologies (LON:PRES) – specialist engineer
Quartix Holdings (LON:QTX) – subscription-based vehicle tracking systems, software and services
Rosenblatt Group (LON:RBGP) – legal services with a specialism in dispute resolution

You can find out more about Fundamental AIM portfolios, including the latest fact sheets, from the link here.

Fundamental Asset Management has delivered exceptional investment returns investing in AIM for Inheritance Tax planning services for more thasn 15 years.