IPO Readiness & Financial Reporting
Preparing for an IPO or admission to a public market on AIM, the Aquis Stock Exchange or the Main Market of the London Stock Exchange, requires rigorous financial preparation and a clear understanding of each exchange’s specific requirements. Whether targeting the lighter-touch Aquis Growth Market or the more demanding standards of AIM or the Main Market, the admission document (or prospectus) must deliver reliable financial information that gives investors confidence.
At Westend Corporate, our team of qualified accountants and lawyers brings over 20 years’ experience in IPOs and public market admissions. We provide dedicated support to pre-IPO companies, managing the complex financial deliverables while leveraging our strong relationships with London’s leading corporate advisers, nomads, sponsors, reporting accountants, brokers and legal teams. We take complete ownership of the financial workstreams, streamlining the entire process to ensure your IPO is delivered on time and within budget.
Historical Financial Information (HFI) Preparation & IFRS Conversion
A cornerstone of any prospectus or admission document is reliable historical financial information (often covering at least two to three years, depending on the market). The HFI for a listing on the Main Market must be presented under IFRS. Many private companies report under UK GAAP or other local GAAP, so a full conversion to IFRS is often required.
AIM now offers greater flexibility allowing companies to present the HFI under either IFRS or FRS 102. An Aquis listing continues to provide similar flexibility, permitting a choice between IFRS or UK GAAP.
We conduct a detailed gap analysis between your existing accounts and the relevant reporting framework (whether IFRS, FRS 102 or UK GAAP), identifying material differences in areas such as revenue recognition, lease accounting, development cost capitalisation, goodwill amortisation and share-based payments. We then prepare fully converted HFI with enhanced Plc-level disclosures, working to support the “true and fair” opinion from your reporting accountant.
This work is tailored to the specific exchange and our deep expertise in preparing these ensures they are prepared within budget and on time with the IPO timetable. We will sit down with you and outline your future company plans and advise on the most appropriate framework, whether transitioning to IFRS, or preparing under FRS 102, so you can make an informed choice that best supports your long-term objectives.
Financial Position and Prospects Procedures (FPPP)
Directors must demonstrate that appropriate systems, controls and processes are in place to support reliable financial reporting and market updates post-listing. The FPPP memo, signed off by the board and reviewed by the reporting accountant and nomad/sponsor, is a key requirement for AIM and Main Market admissions and strongly recommended for Aquis.
We help assess your current governance, risk management and financial controls, then work with management to strengthen them where needed.
Following an in-depth review and discussions with those responsible for the relevant controls, we prepare the FPPP memo, bridging any gaps and implementing the further controls and governance required as a Plc that a private company would not typically need. We work directly with the Board to ensure they fully understand their ongoing responsibilities and liaise with the reporting accountant (and other advisors) to achieve a smooth sign-off.
Working Capital Modelling & Assessment
Listing rules require confirmation that a company has sufficient working capital for at least 12 months from admission. This involves a detailed, integrated model incorporating forecasts, sensitivities and a “reasonable worst-case” scenario.
We review or build comprehensive working capital models tailored to your business’s size, sector and complexity. We stress-test assumptions around cash flows, liquidity and key risks (e.g., economic conditions or industry-specific factors), providing recommendations to give directors and advisers confidence in the headroom assessment.
We work directly with your reporting accountants to ensure sign-off of this area.
Pro Forma Financial Information
Pro Forma statements illustrate the financial impact of a transaction (e.g., the IPO itself, acquisitions or debt restructuring) as if it had occurred at an earlier date. These are often required or highly beneficial for prospectuses/admission documents.
We prepare pro forma income statements and net assets statements that clearly show adjustments for the transaction, ensuring they are compliant and presented in a way that aids investor understanding. This supports scenarios like fundraising proceeds being used to repay debt or fund growth.
Additional Supporting Services in IPO Readiness
- Project management of financial workstreams to keep the overall IPO timetable on track
- Technical accounting advice on complex areas
- Valuation support
- Due diligence assistance and data room preparation.
- Technical accounting advice on complex areas.
Ready to take the next step?
If you are thinking about listing or would like an initial call to discuss your specific needs and how we can support you, please feel free to reach out. We’re happy to have an informal conversation with no obligation.