2020 showed how resilient and adaptable listed businesses can be

by | Jan 20, 2021

Victoria Stevens, Economic Advantage Team for Liontrust

The Covid-19 crisis led to some companies needing to raise funds quickly to tackle the short-term cash crunch from restricted trading conditions. However, it also displayed just how resilient and adaptable listed businesses can be; many companies were able to take a front-foot approach to tackling the rapidly changing economic backdrop, raising funds for proactive reasons such as making acquisitions or otherwise accelerate growth against a very dynamic business backdrop.

 

In this respect, the pandemic also highlighted the substantial benefits of being listed on the stockmarket, which provides an efficient and relatively immediate source of capital. London Stock Exchange data show there were 191 Main Market share placings in 2020 through to the end of November, comfortably exceeding 2019’s full-year total of 150. Unsurprisingly, these fundraisings peaked in the second quarter as companies reacted to the new trading conditions in which they found themselves.

 

Pleasingly for us, the majority of stocks in the Economic Advantage funds have proven resilient to the pandemic, and those raising fresh capital have largely done so for proactive reasons. We look forward to monitoring their progress in 2021 and stand ready to support our companies in their growth plans when required.

Related articles

Aldi and Lidl win UK Christmas battle

Aldi and Lidl win UK Christmas battle

(Sharecast News) - German discounters Aldi and Lidl performed best in December, according to data from retail expert Kantar, which said a record £13.7bn was spent at British supermarkets over the four weeks ended 24 December. Kantar recorded Lidl's sales growth at...

UK house prices fall 1.8% YoY in December – Nationwide

UK house prices fall 1.8% YoY in December – Nationwide

(Sharecast News) - UK house prices fell by a higher-than-expected 1.8% year on year in December, mortgage lender Nationwide said on Friday, as higher borrowing costs and deposit requirements deterred buyers. Expectations were for a 1.4% fall. Prices remained flat on a...

Trending stories

Join our mailing list

Subscribe to our mailing list to receive regular updates!

x