Fees from new companies listing on the Alternative Investment Market (AIM) have fallen by 32 per cent over the last year, research from Birmingham accountancy firm UHY Hacker Young has shown.

According to the research, approximately £333 million was earned in professional fees from initial public offerings (IPOs) on AIM in the year to May 31, down from £487 million the previous year.

There was a 33 per cent fall in the number of new companies listing on AIM over the same period to 175 in the last year from 260 in the previous year.

UHY Hacker Young partner Malcolm Winston said: “The larger sums of money being raised on AIM means that it has become more dependent on institutional investors but the current economic uncertainty means that institutions are far less keen to increase their exposure to equities.

“Smaller and mid cap companies, which tend to have a much higher volatility of earnings, are normally the first to suffer from a buyers’ strike.

“In fact the AIM market has not done too badly, only falling about 19 per cent over the last year compared to 16 per cent for the FTSE-100. That is a far less savage a fall compared to previous corrections.”