abrdn's Abby Glennie: A crisis faces UK listed smaller companies

'We must act now to protect them'

There is a crisis facing the UK smaller listed companies sector. Declining investor appetite, a “negative home bias”, the burden of heavy regulation, and many other factors, mean the number of listed smaller companies in the UK has been in freefall.

While discussion about how to revitalise UK capital markets has mostly focused on larger listed firms, it is arguably the smaller companies' segment which has had the biggest kicking. Over the past 20 years, the number of smaller UK companies (‘small caps') listed on the London Stock Exchange has dropped by nearly a third, according to a report by think tank New Financial. IMF urges Reeves to temper debt levels to avoid triggering 'adverse market reaction' The report, released this week and sponsored by abrdn, found that equates to a net loss of nearly 600 companies. By contrast, t...