2021 has yet again shown how small and mid-caps have demonstrated their resilience and found support from the public markets. Nevertheless there is an increasing disparity between investors and companies on how attractive these markets are and how much their attractiveness has improved over the last 12 months.
They survey highlights
- 63% of investors think the UK markets are attractive but just 45% of companies see it the same way.
- 50% of investors think the attractiveness of the UK markets has improved over the last 12 months, but only 30% of companies think it has improved.
Other key findings include:
- For both investors and companies, the most frequently cited concern faced by small and mid-caps is around liquidity and supply chains;
- Over the past 3 years, investors have viewed capital market days as the best way for companies to improve their visibility; and
- 41% of investors believed ESG funds will have a positive impact on the overall attractiveness of public markets for companies, compared to 36% of companies themselves.
Particularly in relation to market attractiveness, the QCA believes this increasing difference of opinion is one that needs to be addressed urgently. The bringing together of businesses and investors is a fundamental part of our economy and drives the creation of social wealth. The report shows that whilst markets worked well in 2021 from an investor’s point of view, the future health of our markets should not be taken for granted. Much more needs to be done and the QCA will be working hard to effect positive change.
Download the full QCA/Peel Hunt Mid & Small-Cap Survey here.
Tim Ward, Chief Executive, the Quoted Companies Alliance said:
“It is encouraging that investors have a positive opinion of UK markets currently, but if companies don’t share this outlook and choose not to list then investors will have fewer options.
In the past year making markets more attractive to companies has been a priority for policy makers - the Lord Hill Review and the subsequent consultations have explored meaningful improvements but all of this potential benefit could be scuppered by attempts to “fail proof”
Steven Fine, Chief Executive Office, Peel Hunt said:
“Capital markets are crucial to fuelling future growth and ensuring the UK cements its position as a destination of choice for private companies seeking capital. The views of companies and investors must be heard as these markets continue to evolve.
This year’s survey suggests there is still some way to go to make UK markets more attractive for companies and investors alike, providing food for thought to policy makers and regulators.”
- Ends -
For further Information please contact:
Communications Executive, The Quoted Companies Alliance
T: 020 7397 8140
About The QCA
The Quoted Companies Alliance is the independent membership organisation that champions the interests of small to mid-size quoted companies.
There are around 1,250 small and mid-size quoted companies in the UK, representing 93% of all quoted companies. They employ approximately 3 million people, representing 11% of private sector employment in the UK, and contribute over £26bn in annual taxes (source).
Our goal is to create an environment where that potential is fulfilled. We identify the issues that matter to our members, keep them informed and interact to build the understanding and connections that help our members stay ahead. For more information please visit www.theqca.com.
About Peel Hunt
Peel Hunt is a leading specialist in UK Investment Banking, ranked number one broker for UK mid and small-cap companies in Institutional Investor’s latest Europe Survey. Our purpose is to nurture and guide people through the evolution of business. We achieve this through a proven, joined-up approach that consistently delivers value to UK corporates, global institutions and trading counterparties alike.