Table of Contents
Executive summary
The definition of small caps
The market opportunity
Summarised survey rankings
Buy-side issues and trends
Trading and commissions
Feedback on AIM
Sell-side issues and trends
Unbundling and independent research
Conclusion
Chapter 01 - Introduction
Chapter 02 - Market size
The market below £1bn market capitalisation
Fee generation by constituent
AIM
The players
Chapter 03 - The survey results
Leading brokerage firm – UK small caps
Best research team – UK small caps
Best sector team – UK small caps
Capital goods
Construction
Consumer goods
Financials
Leisure and gambling
Life sciences
Media
Metals and mining
Oil and gas
Real estate
Retail
Support services
Technology
Transport and logistics
Best sales team – UK small caps
Best corporate access – UK small caps
Best trading/execution firm – UK small caps
Chapter 04 - Buy-side trends
Preferences and trends in research requirements
Preferences in corporate broking
Preferences in execution
Views on AIM
Chapter 05 - Sell-side trends
Levels and nature of new issue activity
Sizes and nature of banking teams
Commission trends
Chapter 06 - Unbundling and independent research
Survey results in relation to unbundling and independent research
List of tables
Table 1.1: UK Small Caps – in-house definition of market capitalisation
Table 2.1: The universe of UK listed companies, 2005, 2006
Table 2.2: New issue activity in the sub-£1bn sector, 2005, 2006 (£m)
Table 2.3: Estimated value of new issue business in the sub-£1bn sector, 2006 (£m)
Table 2.4: Typical listing costs, 2006 (£000)
Table 3.1: Leading small caps brokerages, 2007
Table 3.2: Leading overall research brokerages, 2007
Table 3.3: Leading brokerages – capital goods
Table 3.4: Leading brokerages – construction
Table 3.5: Leading brokerages – consumer goods
Table 3.6: Leading brokerages – financials
Table 3.7: Leading brokerages – leisure and gambling
Table 3.8: Leading brokerages – life sciences
Table 3.9: Leading brokerages – media
Table 3.10: Leading brokerages – metals and mining
Table 3.11: Leading brokerages – oil and gas
Table 3.12: Leading brokerages – real estate
Table 3.13: Leading brokerages – retail
Table 3.14: Leading brokerages – support services
Table 3.15: Leading brokerages – technology
Table 3.16: Leading brokerages – transport and logistics
Table 3.17: Leading brokerages – sales
Table 3.18: Leading brokerages – corporate access
Table 3.19: Leading brokerages – trading/execution
Table 4.1: Factors in evaluating broker research, 2007, 2006 (%)
Table 4.2: Relevance of in-house research, 2007, 2006 (%)
Table 4.3: Number of small cap specialists in buy-side teams, 2007, 2006 (%)
Table 4.4: Research frequency from in-house large cap analysts, 2007, 2006 (%)
Table 4.5: Non-deal meetings with companies, 2007, 2006 (%)
Table 4.6: Liquidity, 2007, 2006 (%)
Table 4.7: New issue road-shows, 2007, 2006 (%)
Table 4.8: Conferences, 2007, 2006 (%)
Table 4.9: News flow, 2007, 2006 (%)
Table 4.10: Direct market access, 2007, 2006 (%)
Table 4.11: Ideas generation, 2007, 2006 (%)
Table 4.12: Block trades, 2007, 2006 (%)
Table 4.13: Market analysis, 2007, 2006 (%)
Table 4.14: Electronic execution, 2007, 2006 (%)
Table 4.15: Loss ratios facility, 2007, 2006 (%)
Table 4.16: Preference for market-makers or sets, 2007, 2006 (%)
Table 4.17: Market share commission to your leading broker, 2007, 2006 (%)
Table 4.18: Market share commission to your leading three brokers, 2007, 2006 (%)
Table 4.19: Interest in AIM categories – sectors under-represented on the Main Market, 2007, 2006 (%)
Table 4.20: Emerging market listings, 2007, 2006 (%)
Table 4.21: Other international listings, 2007, 2006 (%)
Table 4.22: Dual listings, 2007, 2006 (%)
Table 4.23: Exposure to AIM in next 12 months, 2007, 2006 (%)
Table 6.1: Usefulness of research from non-integrated firms – research sponsored by companies, 2007, 2006 (%)
Table 6.2: Non-integrated research boutiques – research sponsored by the buy-side, 2007, 2006 (%)
Table 6.3: Use of independent research firms, 2007, 2006 (%)
Table 6.4: Level of commission sharing, 2007, 2006 (%)
Appendix 1: Broker rankings – by main category, 2007
Appendix 2: Broker rankings – by sector, 2007
List of figures
Figure 2.1: New issues money raised on AIM, 2002–06 (£m)
Figure 2.2: Estimated value of new issue business in the sub-£1bn sector, 2006 (%)
Figure 2.3: Growth of AIM, 1995–2006 (£m)
Figure 2.4: International listings, by country/region, Q1 2006–Q1 2007
Figure 4.1: Ratio of value of execution to research (%)
Figure 5.1: Rejection of small cap IPOs, 2007, 2006 (%)
Figure 5.2: Small cap IPOs – size of banker teams, 2007, 2006 (%)
Figure 5.3: Small cap IPOs – brokers with specialist banker teams, 2007, 2006 (%)
Figure 5.4: Contribution of secondary revenues, 2007, 2006 (%)
