Fun with Finance: Brighton Pier Group Dives into JP Jenkins, Ditching AIM
Business entity Brighton Pier Group aligns with JP Jenkins following departure from AIM market.
Step aside, business world, Brighton Pier Group is making waves yet again! After a hearty goodbye to AIM (London's Alternative Investment Market), they've set sail for greener pastures—JP Jenkins.
The company, famous for owning Brighton Palace Pier, Lightwater Valley Family Adventure Park, and a gang of bars and mini-golf destinations, decided to take the plunge in early April. Citing high costs, market volatility, and a craving for liquidity, they bid adieu to the AIM market, aiming to save a potential £300k per year in administrative costs.
In a statement, Brighton Pier Group declared, "The hefty expenses and the legal and regulatory burden associated with maintaining the Company's admission to trading on AIM are, in our opinion, out of proportion with the benefits of the Company's continued admission to trading on AIM."
So, where are they heading now? JP Jenkins, a share trading venue for unlisted or unquoted assets in companies, is their new port of call. On this platform, shareholders engage in the time-honored tradition of buying and selling equity on a matched bargain basis. With a market cap of £4.7 million, Brighton Pier Group will be fitting right in.
Current shareholders eager to sell their stocks can do so through their stockbroker, and the company is said to be in deep discussions with prominent shareholders about refinancing their bank debt.
Setting Records
This change of tides comes in the wake of record-breaking sign-ups on JP Jenkins' platform. In March alone, an impressive number of firms flocked to the platform, bringing the grand total up to 49 at the end of the first quarter. Following suit was model train business Hornby, which announced its intention to exit AIM in March too. Now, companies listed on the platform are worth a staggering £2 billion.
Mike McCudden, CEO of JP Jenkins, had this to say, "The rapid growth underscores the growing demand from issuers and investors to innovatively connect buyers and sellers of securities, and I eagerly anticipate more success as 2025 unfolds."
It seems the lure of flexibility, lower costs, and dealing with a sustainable-focused investor base has attracted the attention of more businesses—and it's not hard to see why! With the increase in demand, could this be just the beginning of a new era for private companies seeking liquidity solutions? Stay tuned as the story unfolds!
Enrichment Insights:
- JP Jenkins and AIM cater to different market segments, offering solutions for businesses with varying needs.
- JP Jenkins, specialized in private/unlisted securities, comes with lower regulatory burdens compared to public markets, making it ideal for SMEs seeking liquidity without the complexities of public listings.
- AIM, a public junior market, demands prospectuses, ongoing disclosures, and adherence to EU-regulated exchange rules that may be expensive for smaller companies.
- JP Jenkins offers a cost-efficient, broker-driven model with real-time pricing, avoiding IPO underwriting fees and extensive compliance obligations, contrasting with AIM's involvement of underwriting, legal fees, and annual compliance cost.
- JP Jenkins attracts specialist investors focusing on sustainability or niche sectors, aligning with Earth Capital's SDG-oriented network, whereas AIM provides access to broader institutional and retail investors.
- JP Jenkins enables private businesses to offer liquidity discreetly without full market scrutiny, preserving their operational privacy, while AIM demands public transparency, potentially deterring control-focused founders.
[1]: These insights are based on data from Earth Capital (a JP Jenkins partner), the London Stock Exchange, and other research resources.
- Brighton Pier Group, in search of lower costs and liquidity, moved their investments from AIM to the private market venue JP Jenkins.
- JP Jenkins, a platform for unlisted assets, offers benefits such as lower regulatory burdens and real-time pricing compared to public markets, making it attractive for SMEs.
- Despite the departure of Brighton Pier Group, companies listed on AIM still account for an impressive £2 billion worth of investments.
- Jenkins anticipates continued success as more businesses look towards JP Jenkins for a flexible, cost-efficient solution to access sustainable-focused investors.
- It is argued that the shift towards private markets like JP Jenkins could signal a new era for private companies seeking innovative liquidity solutions, offering a balance between investors and operational privacy.
