Top 10 AIM Shares to Buy in 2022

The AIM shares might be an excellent area to locate under-the-radar growing firms. Companies listed on the AIM are usually small companies that are just getting started in their careers and have a lot of promise ahead of them.

As lockdowns fade away, investors and analysts are turning to the London Stock Exchange to locate the top FTSE AIM stocks to buy and add to their watchlists. You’re undoubtedly wondering how to figure out which AIM stocks are the best. To help you do so, we’ve compiled a list of the top 10 AIM shares to buy in UK 2022, as well as guidance on where and how to buy AIM shares.

What are AIM Shares?

The Alternative Investment Market is a component of the London Stock Exchange. Smaller firms that are either too small or too new to reach the main marketplace London Stock Exchange will instead trade on the AIM subsidiary market. The AIM was only established in 1995 as a stock exchange.

It took the place of the Unlisted Securities Market (USM), which offered essentially the same facilities as the AIM. Despite this, there were only ten businesses listed on the AIM when it originally opened, bringing the exchange’s total market capitalization to just over £80 million. According to londonstockexchange.com, there are now 725 AIM shares traded with a net market worth of £96,963 million in 2022.

Despite the fact that the AIM has grown dramatically since its inception in 1995, it remains considerably smaller than its London Stock Exchange rival.

Top 10 Best AIM Shares to Buy UK in 2022

Before we get into the best AIM shares to invest in 2022 in detail, Here’s a quick list of the best AIM companies to invest in that can pay off handsomely:

  1. Boohoo Group PLC (LON: BOO)
  2. Open Orphan PLC (LON: ORPH)
  3. AB Dynamics PLC (LON: ABDP)
  4. Cerillion PLC (LON: CER)
  5. Keystone Law Group PLC (LON: KEYS)
  6. Calnex Solutions PLC (LON: CLX)
  7. Gamma Communications PLC (LON: GAMA)
  8. GlobalData PLC (LON: DATA)
  9. Fonix Mobile PLC (LON: FNX)
  10. TinyBuild Inc (LON: TBLD)

Top 10 AIM Shares Reviewed 

1. Boohoo Group PLC (LON: BOO)

The Boohoo Group is positioned to become the newest AIM major success. The company works in the online fashion industry and caters to a younger demographic. Despite the fact that Boohoo was just formed in 2006, it has developed rapidly since then.

As a result, if you bought Boohoo shares at 22 GBX a share in 2016, you would have made a 1,868 percent profit today. The stock of online clothes retailer Boohoo dropped after widespread reports of poor working conditions for its factory workers.

The company has taken steps to address the claims since then. It severed relations with some, consolidated others, and eliminated the use of subcontractors. The corporation is attempting to rehabilitate its image, and its recent actions indicate that it is making significant efforts to do so.

Best AIM share - Boohoo group price chart

Boohoo stocks had a trading volume of £18.68 million at the time of composing this article. Its 52-week stock price high is 359 GBX, implying a 351 percent upside objective at the current price of 92.74 GBX. These fundamentals indicate that Boohoo is on the decline, making it one of the best AIM stocks to invest in for future gains.

2. Open Orphan PLC (LON: ORPH)

Open Orphan is a non-profit organization that uses human challenge clinical trials to evaluate vaccinations and antivirals. It does not perform expensive R&D medication development, but it conducts the legwork in the background, such as clinical trial services and data processing.

Open Orphan’s subsidiary, hVIVO, recently announced the debut of its Disease in Motion platform, a data-driven platform including clinical, immunological, virological, and virtual (comfortable to wear) biomarkers. It also recently received a £7.5 million contract to undertake a human viral challenge study for a respiratory syncytial virus preventive and therapy with a biotechnology business.

Of course, it was also involved in the development of Covid-19 vaccines, assisting in the first human challenge trials, and receiving a £40 million UK Government contract in October 2020.

Best AIM share - Open Orphan price chart

At a price of only 15.05 GBX, Open Orphan is the best cheap AIM share in 2022.

Also, the stock is in the fall for a few months, providing now an excellent time to buy. Open Orphan stocks had a trading volume of £2.26 million at the time of composing this article. Its 52-week stock price high is 48 GBX, implying a 218 percent upside objective at the current price of 15.06 GBX.

3. AB Dynamics PLC (LON: ABDP)

Automotive test systems are provided by AB Dynamics to both domestic and international automobile manufacturers. The company started out as a car engineering consultant in 1982, but it has slowly grown over the years.

Track testing and laboratory and simulation testing are the two primary business sectors of AB Dynamics. In the United States, the company’s track testing division, which is its principal income generator, grew dramatically in 2020. It also saw advancements in the simulation field.

Recurring revenue climbed from 10% to 28% of the total revenue for the company. AB’s services should experience a surge in demand as self-driving technology becomes more widely available.

Following the coronavirus outbreak in Europe and North America, AB’s stock price dropped, as did that of most other companies, with several orders being postponed. While this is clearly a setback, we believe they will restore revenue in the second half of 2022, and their stock will rise.

Those who invested during the company’s initial public offering (IPO) in 2013 might expect gains of 2,291 percent over the next eight years. However, with a price of 1068 GBX, AB Dynamics shares have since dropped off significantly. As a result, you have a good possibility of getting a good deal on the stock, making AB Dynamics one of the finest AIM stocks to buy right now.

AB Dynamics stocks had a trading volume of £56.80k at the time of composing this article. Its 52-week stock price high is 2470 GBX, implying a 131 percent upside objective at the current price of 1068 GBX.

AB Dynamics has a price-to-earnings (PE) ratio of 81.51, and the company also pays a 0.45 percent dividend.

4. Cerillion PLC (LON: CER)

Cerillion is a software startup that helps organizations with billing, pricing, and customer relationship management.

For starters, the company is currently gaining a lot of traction. Revenue increased by 25% to £26.1 million in the year ended 30 September 2021, while adjusted earnings per share (EPS) increased by 105 percent to 25.5p. During the year, the company was awarded a number of significant new contracts.

The company’s financials appear to be in good shape. Debt is low, and the return on capital employed (ROCE), a fundamental indicator of profitability, is rising.

The price appears to be pretty affordable. The forward-looking price-to-earnings (P/E) ratio is roughly 32.69 at the present share price, which is not bad for a software company. Cerillion also distributes a 1% dividend.

Cerillion’s stock has been rising for a long time, providing stockholders a large profit. Cerillion stocks had a trading volume of £68.53K at the time of composing this article. Its 52-week stock price high is 930 GBX, implying only a 30 percent upside objective at the current price of 710 GBX.

5. Keystone Law Group PLC (LON: KEYS)

Keystone Law is a unique UK law company that uses a ‘platform’ concept to allow lawyers to work from anywhere.

The company appears to be well-positioned to gain from the continued rebound in the UK economy. Legal services are often in more demand when the economy is doing well.

As a platform business, this has a lot of room for long-term growth. The firm is not bound by office space, unlike typical law firms. After Covid, experts believe its work-from-anywhere marketing strategy to attract lawyers across the country.

Keystone Law currently has a P/E ratio of 31.76. This indicates that the stock is perfectly valued, and the corporation pays a 2.43 percent dividend.

Keystone Law’s stock is now in the fall, providing now an excellent time to buy. Keystone Law stocks had a trading volume of £19.45k at the time of composing this article. Its 52-week stock price high is 910 GBX, implying a 46 percent upside objective at the current price of 622 GBX.

6. Calnex Solutions PLC (LON: CLX) 

Calnex Solutions PLC is a prominent provider of telecoms testing and measurement facilities.

The fifth generation of network technology (5G) is now being pushed out in the telecoms industry, which is undergoing enormous development. All of the great new technologies we constantly hear about, which include self-driving cars and remote surgery, will ultimately rely on 5G. In the coming years, the introduction of new telecommunications technologies is projected to result in a strong need for network testing services.

Calnex released their H1 results for the period ending September 30, 2021, in November. The company stated that “high levels of trading” were experienced in the first half of its fiscal year and that it expected this trend to continue in the second half.

Calnex Solutions’ stock has been rising continuously, providing stockholders a large profit. Calnex Solutions stocks had a trading volume of £114.12k at the time of composing this article. Its 52-week stock price high is 154 GBX, implying only a 3 percent upside objective at the current price of 148.54 GBX.

7. Gamma Communications PLC (LON: GAMA)

Gamma Communications is a major commercial communications solutions supplier.

Between now and 2028, the industry is expected to increase at a rate of roughly 21% each year, according to Grand View Research. Gamma, which has grown its top line by over 100% in the last five years, should benefit greatly from this expansion.

Another reason we like this AIM Company is that its price has dropped significantly in recent months. The stock was trading above 2,300 GBX in September. However, it is currently trading near 1496 GBX. We regard this reversal as a buying opportunity. The firm’s forward-looking P/E ratio is at 20.91, and it also provides a 0.82 percent dividend.

Gamma Communication’s stock is in the fall, providing now an excellent time to buy. Smith & Nephew stocks had a trading volume of £126.14k at the time of composing this article. Its 52-week stock price high is 2350 GBX, implying a 57 percent upside objective at the current price of 1496 GBX.

8. GlobalData PLC (LON: DATA)

GlobalData PLC is another company that entered a new market before it truly took off: data analytics. However, when the company was founded in 1999, the sector wasn’t even a thing. As a result, when GlobalData PLC first launched on the AIM in 2009, you would have paid in and around 89 GBX per share.

Since then, the stocks have been steadily rising. GlobalData PLC shares were trading at 1294 GBX at the time of writing in March 2022, representing a gain of a little over 171 percent since the company went public in 2009.

Most notably, despite a drop in 2021, the stocks have not just recovered – but are still rising. GlobalData has a current market valuation of £1.53 billion, according to the fundamentals. This makes it one of the most valuable AIM stocks on the market.

As a result, some analysts believe the company is poised for a larger listing on the London Stock Exchange, and as a result, it might soon join the FTSE group of corporations.

Currently, GlobalData stocks had a trading volume of £7.18k at the time of composing this article. Its 52-week stock price high is 1700 GBX, implying a 31 percent upside objective at the current price of 1294 GBX.

GlobalData’s price-to-earnings (PE) ratio is 63.92, and the company also pays a 1.49 percent dividend.

9. Fonix Mobile PLC (LON: FNX)

Fonix Mobile, one of the most popular cell payment and messaging solutions, allows businesses in a variety of industries to charge clients’ mobile bills, including media, charity, digital services, and gaming.

FNX shares are doing quite well at the time of writing. Its stock price has increased significantly in value over the last year, rising by 66.85%. Fonix Mobile PLC’s current share price is 156 GBX, giving it a market capitalization of £154 million. Fonix Mobile PLC reported sales of £11.53 million in the fourth quarter of fiscal 2021, up 13.44 percent year over year. The company’s net income increased by 3.54 percent to £1.67 million, representing a 3.54 percent raise.

Fonix Mobile PLC debuted on the Alternative Investment Market (AIM) in October 2020. During the Covid-19 pandemic, Fonix Mobile PLC completed its AIM IPO.

Fonix Mobile stocks had a trading volume of £170.12K at the time of composing this article. Its 52-week stock price high is 190 GBX, implying only a 21 percent upside objective at the current price of 156 GBX.

Fonix Mobile’s price-to-earnings (PE) ratio is a whopping 25.85, and the company pays a 3.54 percent dividend.

10. TinyBuild Inc (LON: TBLD)

Another new AIM stock to check is TinyBuild, a video game developer located in the United States. Its purpose is to build long-term partnerships with game developers and monetize popular titles across several platforms.

Online gaming is one of the most popular sectors, and it is projected to continue to expand and grow rapidly. However, like with any investment, there are no promises that tinyBuild will continue to perform well. In addition, the stock is valued at 49 times the forecasted earnings. In general, only the most optimistic investors consider this type of value to be realistic.

A very small free float also signals that the share price may be volatile in the future. While TinyBuild’s founders still control significant stock, suggesting that their interests are aligned with those of their stockholders. The company also has a strong balance sheet, which is one of the most important factors to consider when buying small-cap AIM shares.

TinyBuild’s stock is now in the fall, providing now an excellent time to buy. TinyBuild stocks had a trading volume of £190.63 at the time of composing this article. Its 52-week stock price high is 286 GBX, implying a 90 percent upside objective at the current price of 150.50 GBX.

Where to buy the Best AIM Shares in the UK?

Only by opening an account with a reputable stock trading broker will you be able to purchase the best AIM shares. With that in mind, below we’ve selected two of the best UK stockbrokers to buy the best AIM shares in 2022:

1. eToro 

eToro is a user-friendly stock trading platform that is appropriate for investors of all levels of experience. In fact, you’ll have no trouble navigating the eToro platform even if you’ve never bought a single stock in your life.

This is because it only takes a few minutes to register an account and deposit funds, after which you will have instant access to over 800 shares. Companies from 17 different stock markets, including the AIM, are represented.

eToro does not charge any dealing costs is the most tempting aspect of the platform’s share purchasing process. Instead, you can buy as many shares as you want for the rest of the month without paying any commissions.

One of the best aspects of eToro is that it is a social trading platform with copy trading capabilities. This means you can discuss tactics and share insights with over 20 million other users on the eToro network, and you can even duplicate the complete portfolios of top investors!

eToro is licensed on three fronts when it comes to regulation. This comprises the Financial Conduct Authority (FCA), as well as the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC) (ASIC). Most significantly, if eToro goes bankrupt, your funds are safeguarded by the Financial Services Compensation Scheme (FSCS). The minimum deposit is $50, and it can be made with a UK debit/credit card, bank account, or e-wallet like PayPal.

Pros

  • Online stockbroker with a user-friendly interface
  • No commission or share dealing fees
  • Around 800 shares listed on the UK and worldwide stock exchanges
  • Invest in stocks or trade CFDs
  • Tools for social and copy trading
  • Accepts PayPal 
  • Trading App for Mobile
  • Has a license from FCA

Cons

  • Not for advanced traders for technical analysis

2. Fineco Bank 

Fineco Bank is an Italian brokerage with a significant presence in the United Kingdom and offers large number of shares and affordable costs. This broker allows you to purchase and sell over 10,000 shares from the AIM and beyond!

You can trade AIM shares in two ways with Fineco Bank. You can either trade CFDs (contracts for difference), in which you don’t own the underlying shares, or you can buy them outright. There are no commissions while trading AIM share CFDs, and you can trade on leverage up to 5:1. A commission of £2.95 per share is charged when purchasing AIM shares outright.

This broker offers an advanced trading software called PowerDesk that can assist you in deciding which AIM shares to purchase. The platform comes with dozens of built-in studies and drawing tools, as well as extensive technical charts. To keep on top of the market, you can create watchlists, price alerts, and more.

Fineco Bank is authorized by the Bank of Italy and the Financial Conduct Authority of the United Kingdom, making it exceptionally reliable. Furthermore, Fineco Bank is a firm that is publicly listed on the Milan Stock Exchange. The broker provides exceptional customer service, and there is no minimum deposit required to create an account.

Pros

  • Reputable broker with a long track record
  • Services for trading stocks at a reasonable price
  • Short-selling and leverage are also options
  • Hundreds of worldwide markets are available to you
  • A reliable trading platform
  • You don’t have to pay capital gains tax if you invest in a Stocks & Shares ISA

Cons

  • ETF trading is costly and necessitates a minimum investment

How to Buy AIM Shares UK?

So, now that you’ve had a chance to consider some of the greatest online stock brokers in the industry, we’ll teach you how to buy top AIM shares in the UK step by step. In less than 10 minutes, you might have your first AIM share if you follow the instructions below!

Step 1: Open an Account 

Visit the eToro webpage to start the account registration process. Your name, home address, date of birth, contact information, and national insurance number will be required. You’ll also have to create a username and a secure password.

Step 2: Verify Your Identity

eToro will next require you to provide documents to prove your identity. A clear copy of your passport or driver’s license, as well as a recent utility bill or bank account statement, are all that is required.

Step 3: Deposit Funds

You will now be prompted to fund your eToro account with money. You’ll need to deposit at least $50, and there will be a 0.5 percent currency conversion fee. The payment options available are:

  • Debit cards
  • Credit cards
  • Paypal
  • Skrill
  • Neteller
  • Bank transfer

Step 4: Select the AIM Shares you want to invest in 

With a funded eToro account, you can buy all of the best shares on our AIM shares list with a single click. To begin, search for the particular AIM share in which you want to invest.

Then we must select the ‘Trade’ button.

Step 5: Buy AIM Shares

You’ll now see an order box similar to the one shown below. All you need to do is determine the amount of your investment. You can invest as much or as little as you like as long as you fulfill the $50 minimum.

Finally, to finish your AIM share purchase, click the ‘Open Trade’ button!

Conclusion

AIM shares may be ideal for you if you want to invest a small portion of your stock investment portfolio in higher-risk assets. There’s a good possibility you’ll pick a company that makes it big, which means there’s a lot of money to be made.

Remember that investing in AIM shares carries a lot of risks, therefore if you find an area with potential for growth, we recommend allocating a small amount of your portfolio to the AIM market.

If you do decide to invest, eToro has all of the top AIM shares available to buy right now. You may use your UK debit/credit card to make an immediate deposit and then buy AIM shares without paying any commissions.

Frequently Asked Questions

What are AIM shares?

AIM shares are companies that are traded on the Alternative Investment Market, a secondary market in the United Kingdom. These businesses are often small or newly established, with substantially lower market capitalizations.

When did the AIM get started?

Only ten firms were listed on the AIM when it first opened in 1995, with a combined market capitalization of £82 million.

What is the procedure for purchasing AIM shares?

Purchasing AIM shares in the United Kingdom is simple, but you must first select a good broker. It must not only provide you with access to the AIM but also charge reasonable costs.

Are dividends paid on AIM shares?

Few AIM firms pay dividends since they are still growing. However, a small proportion of them does pay off – some of them we have already mentioned in this guide.

How many firms are listed on AIM?

The AIM has 725 companies traded with a net market worth of £96,963 million in 2022.