US becomes UK’s top finance customer: 2 AIM stocks to buy

Image Source: oatawa, Shutterstock.com

Highlights 

  • The US became the UK’s biggest financial services export destination, accounting for 34.2 per cent of the sector’s exports in 2020, surpassing the EU.
  • The UK’s financial services exports to the EU fell by 6.6 per cent on a year-on-year basis to £24.7 billion in 2020.
  • UK’s exports to non-EU nations increased by 4.1 per cent to £57.7 billion in 2020, while financial services exports to the US rose by 5.3 per cent.

The US has become the UK’s top financial services export destination, accounting for 34.2 per cent of the sector’s exports in 2020, surpassing the EU amid Brexit and the pandemic, according to a report by financial services industry group, TheCityUK. The sector’s exports to the EU stood at 30 per cent last year

The UK’s financial services exports to the EU fell by 6.6 per cent on a year-on-year basis to £24.7 billion in 2020. However, the UK’s 2020 sector exports to non-EU nations increased by 4.1 per cent on a year-on-year basis to £57.7 billion, according to the report.

The EU is seeking to develop autonomy in its financial sector, thus reducing the likelihood of the UK regaining unrestricted access to the region’s markets.

The lobby group TheCityUK said that financial services exports to the US rose by 5.3 per cent during the period.

Anjalika Bardalai, TheCityUK’s chief economist and head of research, said:

Let us take a look at 2 FTSE AIM All-Share index listed stocks in the financial services sector and their investment prospects:

  1. ADVFN PLC (LON: AFN)

ADVFN is a financial information website for equities, crypto and other instruments offering financial tools and data.

The company’s profit after tax (for the year ending on 30 June) stood at £1.618 million, reversing from a loss of £225 thousand in the year before.

The company plans to pay a maiden dividend of 1.5 pence per share for this financial year. Its ex-dividend date is later this month on 23 December, and its payment date is scheduled for 24 January next year.

Image source: Refinitiv

ADVFN’s shares closed at GBX 74.00, down by 7.50 per cent on 7 December, while the FTSE AIM All-Share index ended at 1,200.05, up by 1.70 per cent.

The company’s market cap stood at £19.33 million, and its year-to-date return was at 282.53 per cent as of Tuesday.

  1. Bonhill Group PLC (LON: BONH)

Bonhill Group is a B2B media company that provides data, analysis, insight and other offerings for financial services and business solutions communities.

The company expects its FY 2021 revenue to be about £16.5 million and its earnings before interest, tax, depreciation and amortisation (EBITDA) to be about £0.8 million, according to its latest trading statement.

Image source: Refinitiv

Bonhill’s shares ended flat at GBX 8.50 on 7 December. The company’s market cap stood at £8.38 million as of Tuesday.


 

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