- The 12 listed companies have raised over €60 million at year-end 2010
- The companies’ headcounts have increased by 23% since 2008
- Growth in shareholders’ equity of 212%, revenue of 46% and profit of 53% between 2007 and 2010
By the end of 2010, the 12 companies listed on the Alternative Stock Market (MAB) had raised over €60 million of new capital since joining the market, according to a report released today by MAB reviewing its first full year of activity. Amid a widespread credit crunch, MAB proved to be an effective financing tool for small companies seeking to expand.
The report also highlights that MAB companies have shown a strong ability to create jobs despite the crisis. Since 2008, these companies’ headcounts have increased by 23%.
They have also fared well on the financial front despite the adverse backdrop. Between 2007 and 2010, on balance they show healthy growth: fund raising has led to a 212% jump in shareholders’ equity, 46% higher revenue and a 53% increase in operating profit.
MAB’s assessment of its first year, according to the players themselves, indicates that listing on MAB not only helped companies raise funds, but also boosted their earnings, expanded their international reach and made them more competitive. They have raised their profiles in all areas. The reputation gained by listing has strengthened their positions vis-à-vis suppliers, clients, employees and competitors. Also importantly, the MAB has expanded their shareholder bases.
The report notes that investors pay little attention to small caps, since they bear greater risk and are not as liquid as blue chips, pointing out the need to grant tax incentives to investors in SMEs so they will be willing to share the risk, making their financing more attractive.