AIM ends COVID temporary measures on financial reporting

In early 2020, in response to the COVID-19 pandemic, London Stock Exchange introduced temporary measures for AIM-listed companies in relation to the announcement of their financial results. Companies could apply to AIM Regulation for an additional three months to publish their annual accounts (beyond the normal six-month requirement); and could also take an additional one month to publish their interims (beyond the normal three-month requirement) by notifying AIM Regulation.

AIM has now announced that the temporary measures in place for both half-yearly reports and annual audited accounts will no longer be available for any annual financial periods and any half-year financial periods ending after 28 June 2022. So, for periods ending after that date, annual accounts must be announced within six months under AIM Rule 19 and interims must be announced within three months under AIM Rule 18.

The previous relaxation recognised that AIM companies may be unable to publish annual or half-yearly accounts in line with normal reporting deadlines, due to difficulties created by the pandemic. With restrictions now greatly eased it seems appropriate to remove the temporary measures.

The announcement makes no reference to the remaining COVID relaxations of the AIM Rules, namely the availability of a temporary trading suspension where the pandemic has prevented a timely announcement and the suspension of the requirement for a site visit by a Nomad upon engagement by a new client. However, it is important to note that the suspension of the site visit requirement was only ever insofar as travel restrictions and social distancing measures made it difficult to meet the obligation. It was made clear that once any applicable restrictions have been lifted, AIM would expect Nomads to undertake a site visit to fulfil their obligations under the AIM Rules. As restrictions are now lifting, and international travel to many destinations is returning to normal, in our view it will no longer be appropriate to rely on this relaxation save in exceptional circumstances. Where they can, Nomads should resume site visits.

For more information on AIM, the role of Nomads, and how Memery Crystal can help you with your legal and other obligations please contact the author Michael Dawes or your usual Memery Crystal contact.