Moore Stephens’ Tech Barometer shows that the average enterprise value of AIM’s 173 technology companies stood at £61.9 million at the end of May 2016. This fell 7% to £57.6m at the end of June, shortly after the Brexit vote, but recovered to £62m at the end of July.
Moore Stephens found that the rebound was driven primarily by strong share price recoveries by hardware, software and support services companies (see graph below).
In the six months to the end of June 2016, £115m was raised by AIM’s technology companies, with £41m raised in four IPOs by cloud specialists Osirium and Cerillion, robotics software house Blue Prism and child development software provider Guscio. A further £74m was raised in secondary fundraisings, with the largest being a £14m placing by business software supplier K3 Group.
Dougie Hunter, Associate Director at Moore Stephens, says: “Investors in technology companies certainly turned more cautious on the possibility of the UK leaving the European Union, but the knowledge that it will now happen appears to have actually returned some confidence and certainty to the market.
“The long-term impacts of Brexit on the UK tech sector obviously remain to be seen, and there are still concerns that investment could be delayed or restrictions on the labour market could come into play. However, investors seem comfortable that for the present, Brexit is not yet a major factor.”
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