Trying to grow our own Apples, Googles and Amazons

The LSE's new high growth segment.

With the launch of the London Stock Exchange’s High Growth Segment set for March, it appears that UK technology companies of all sizes will have a domestic listing to suit their needs. The High Growth Segment has been launched to appeal to technology and other growth companies that want to list in London but may not wish to apply for a Premium Listing (be it for eligibility or regulatory reasons) but would like an alternative to AIM, the London Stock Exchange’s junior market..

There is a popular belief that the UK capital markets are not supportive of technology companies and that there has been a flight of UK technology companies to list in the US. However, our analysis indicates that in fact no UK technology companies have listed in the US in the last three years; whereas during the same period more than 30 UK technology companies listed on AIM.

It appears, then, that smaller UK technology companies have already recognised the appeal of listing in London rather than in the US.

Smaller UK technology companies have, for some while, been choosing London rather than the US as their preferred listing destination and AIM can be seen to be doing its job as an incubator for UK companies. At the same time there has been a paucity of listings of larger companies both here and in the US. What is exciting about the launch of the High Growth Segment is that larger UK technology and other growth companies now have a real alternative to a Premium listing or joining AIM.

This can only be a good thing for London. Indeed, the London Stock Exchange has opened the High Growth Segment up to companies that are incorporated anywhere in the EEA, not just the UK. The expectation is, therefore, that European companies will also consider joining the High Growth Segment, further demonstrating London’s position as the leading European equity market.

What is key to this new initiative is that it provides another option to larger technology companies who wish to raise capital. UK technology companies have largely sought growth funding from the debt markets or from private equity. The High Growth Segment offers a real funding alternative.

The rest of this article can be read on economia.

John Hammond is an equity capital markets partner at Deloitte.

The right enviroment for a new Google? Photograph: Getty Images
Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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