7 Quality Shares from AIM to Watch: HUM, OPTI, IDH, NFC, ACSO, IGR, and DATA

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Summary

  • Investing in AIM stocks can be your effortless contribution to the domestic economy
  • AIM investing can result in meaty return and lead to exponential growth in a long term

The AIM segment usually represents businesses with strong growth potential. In the pool of nearly 3,000 businesses, most of these companies are in their nascent stage seeking equity funds to fuel their capacity expansion programmes.

Also, listing requirements in the AIM segment are far less complicated than the main market of the London Stock Exchange (LSE). The eligibility requirements are far easy to comply in contrast to any other segment of the LSE.

Market experts believe that investing in AIM listed businesses could lead to exponential growth as these businesses are in a very nascent stage. Also, these businesses often reinvest their earnings to derive further growth. These stocks can help an investor in reaping inflation adjusted superior returns in contrast to any other stocks or asset class.

                                      

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Also read: 5 Stocks to Look for In the AIM Space

In this article, we would put our lens through 7 quality shares listed on the AIM segment of the London Stock Exchange.  

  1. Hummingbird Resources Plc

FTSE AIM All-Share listed Gold production & exploration company, Hummingbird Resources (LON: HUM) witnessed positive exploration results in its recent drilling results at Yanfolila, Mali. The Company also demonstrated a strong growth prospect, which underpins a solid footing for the Company.

The gold production stood at 101,069 ounces at the All in Sustaining Cash Cost (AISC) of US$1,147 per ounce during 2020, and the company has modest 2021 production outlook. The company has a strong liquidity of nearly US$1.5 million by the end of 2020. The company witnessed a significant amount of debt reduction during the fourth quarter of 2020. Hummingbird Resources market capitalisation stood at £75.06 million as of 13 April 2021 closing.

  1. OptiBiotix Health Plc

AIM-listed life sciences company, OptiBiotix Health Plc (LON: OPTI), has made a significant amount of progress in the financial year 2020. OptiBiotix has a scalable business model in the realm of the human microbiome. The company strives to grow its international footprint across territories.

The Company is focused on securing deals with multiple partners across multiple geographic regions for rapid revenue growth and reducing the cost base. In the last five years, the life sciences company’s revenue has soared at a CAGR of nearly 120 per cent. OptiBiotix’s market capitalisation stood at £47.49 million as of 13 April 2021 closing.

  1. Immunodiagnostic Systems Holdings Plc

FTSE AIM All-Share listed Medical Equipment Company, Immunodiagnostic Systems Holdings Plc (LON: IDH) witnessed improvement in its revenue trajectory during the second quarter of 2021, as the business recovered from the challenges presented by the Covid-19 pandemic. In addition, the company is now emphasising on costs optimisation.

During the first half of 2021, the company had a strong liquidity position and maintained a current ratio of 5.40x, which was nearly double in contrast to its industry peers. In March, the medical equipment company, joined forces with TGS (Technogenetics), which shall supply it with a fully automated IDSSARS-CoV-2 IgG test to make its iSYS analyser a success in the US market. Immunodiagnostic Systems market capitalisation stood at £54.69 million as of 13 April 2021 closing.

  1. Next Fifteen Communications Group Plc

Digital communications provider, Next Fifteen Communications Group Plc (LON: NFC) continued strong trading momentum and is expected to post stronger results in 2021. During the final quarter of 2021, NFC witnessed a strong recovery led by B2B technology focused agencies. The company anticipates its revenues to grow by 9 per cent year on year during the final quarter of 2021. Also, operating margins are expected to follow the growth trend.

NFC recently acquired Shopper Media Group Ltd (SMG) that shall strengthen the skills, data science, technology and create a range of opportunities for the company in connecting the commerce marketing domain. Next Fifteen Communications market capitalisation stood at £711.36 million as of 13 April 2021 closing.

  1. Accesso Technology Group Plc

FTSE AIM All-Share Technology Company specialising in ticketing, e-commerce and mobile technologies and virtual queuing solutions, Accesso Technology Group Plc (LON: ACSO) has shown an improvement in financial performance in the financial year 2020. Accesso Technology Group expects trading in 2021 to be stronger as expedited Covid-19 vaccination programmes are underway.

The Company raised $46.1 million through placing in June 2020, taking the net cash to $29.7 million as of 31 December 2020, led by efficient cash management. Accesso Technology Group’s market capitalisation stood at £288.51 million as of 13 April 2021 closing.

  1. IG Design Group Plc

IG Design Group (LON: IGR) offers Gift Packaging, Craft & Creative Play, Celebrations, Stationery, and Gifting solutions. During 9M FY21, the reported revenue of the company soared 35 per cent year-on-year to nearly US$737 million. During 2020, net debt was recorded at US$26.3 million, reflecting a year-on-year reduction (2019: US$69.1 million).

IG Design delivered stronger than expected H1 FY21 performance as revenue climbed 41 per cent year-on-year and adjusted profit before tax rose 16 per cent against H1 FY20. The interim dividend was maintained as same as last year at 3 pence per share during the first half of 2021. IG Design Group’s market capitalisation stood at £566.15 million as of 13 April 2021 closing.

  1. GlobalData Plc

Market intelligence solutions provider GlobalData Plc (LON: DATA) witnessed a surge of 13 per cent year on year in cash generated from continued operations during 2020. During the year, the subscription revenue jumped by 7 per cent year-on-year. The adjusted EBITDA increased by 14 per cent year on year in 2020, while the adjusted EBITDA margin improved to 32 per cent during the same period. The total dividend per share for 2020 was 17 pence, reflecting a 13 per cent year on year increase. GlobalData’s market capitalisation stood at £1,668.08 million as of 13 April 2021 closing.

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