AIM companies seek to double FTSE growth targets

AIM-listed companies are targeting 12-month revenue growth rates double those of their FTSE counterparts, according to a PwC study.

The 'Thriving on AIM' report said AIM companies are seeking revenue growth of 24% over the next 12 months in spite of ongoing global economic uncertainty. This is double the 12% target found in a comparable survey of FTSE 250 firms, and ahead of the 18% average target for private companies as a whole.

One in five AIM companies are looking to expand turnover by 50% in the next 12 months, the study found.

PwC AIM Leader David Snell said growth strategies now greatly outweigh cost-cutting plans among the 96 companies surveyed, but warned against over-optimism.

Some 70% of companies surveyed in August and September said ‘aggressive growth' is their top priority for the next 12 months, with just 10% highlighting cost controls.

The main focus for new sources of aggressive growth is the US, mentioned by 28% of respondents, and the EU at 24%.

"There are some encouraging signs regarding profitability, but there is also a real risk that companies adopting an aggressive growth strategy could be caught out by recent global macroeconomic events and a fall back into recession. It is therefore vital they prepare a ‘Plan B' for such an eventuality," Snell said.