Historical Financial Information
Definition
Historical financial information is the past-period financial record a company includes in a prospectus or an AIM admission document when it seeks admission to a public market. It normally covers the last three financial years, or the period since incorporation if that is shorter, and it is either audited or reported on, so that investors can rely on the track record behind the offer. The framework matters as much as the period. The information is prepared on the basis the company will use in its next annual accounts: for a Main Market prospectus that means UK-adopted IFRS, while a UK-incorporated AIM company may present it under IFRS or FRS 102 since the AIM Rules changes of August 2026. A reporting accountant typically reports on the historical financial information, or the company's audited accounts are included in the document instead. Worked example: a UK group that has always filed FRS 102 accounts and plans a Main Market listing presents its track record under UK-adopted IFRS, which means restating its earlier years on the IFRS basis and becoming a first-time adopter under IFRS 1. The same group joining AIM could, since August 2026, present that record under FRS 102 or IFRS. Where the framework does change, balances such as development costs may be measured differently from the filed accounts, and the evidence for each adjustment needs to exist for the earliest year shown rather than being reconstructed during the transaction. Contrast: historical financial information looks backwards and is audited or reported on, whereas the working capital statement in the same document looks forward and is supported by a separate working capital report from the reporting accountant.
Complementary Terms
Concepts that frequently appear alongside Historical Financial Information in practice.
A reporting accountant is the independent accounting firm a company appoints to report on its financial information and financial procedures during an IPO. The role is distinct from the statutory audit.
An admission document is the disclosure document a company publishes when it joins AIM and no prospectus is required. It is the main record on which investors assess the company at admission, and its contents follow the AIM Rules.
The process of offering shares of a private company to the public for the first time through a stock exchange listing. An IPO is a major exit route for venture capital and private equity investors, and requires extensive preparation including financial audits, regulatory compliance, and valuation.
The comprehensive investigation and analysis of a business prior to an investment, acquisition, or partnership. Due diligence covers financials, legal, commercial, technical, and operational areas, and increasingly includes assessment of intangible assets and productivity metrics.
The difference between current assets and current liabilities, representing the short-term liquidity available to fund day-to-day operations. Effective working capital management ensures a business can meet its obligations while optimising cash flow for growth investment.
A first-time adopter is an entity that presents its first IFRS financial statements, as defined in IFRS 1, First-time Adoption of International Financial Reporting Standards. Its first IFRS financial statements are the first annual financial statements in which it adopts IFRS through an explicit and unreserved statement of compliance with IFRS.
A nominated adviser, usually shortened to Nomad, is the corporate finance adviser that every company on AIM, the London Stock Exchange's market for growing companies, must retain at all times. A Nomad must itself be approved by the London Stock Exchange to act in the role, and AIM's regulatory model relies on it to act as a gatekeeper for the companies it advises.
A change of control occurs when ownership of a company passes to a new party, as it does on an acquisition. The term matters in M&A because many of a business's contracts contain change-of-control clauses that are triggered by the sale: a customer or supplier contract, a lease, a licence or a loan may allow the other party to renegotiate or terminate if the company changes hands.
Further Reading
The intangibles and valuation workstreams a company prepares before admission, including the track record investors examine.
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Read full answer →What is due diligence and what documents do investors typically request?
Due diligence is investor verification of your claims: they request cap table, financials, contracts, IP documentation, background checks, and customer references to validate your story.
Read full answer →What should founders know about due diligence timelines and costs?
Due diligence takes 8-16 weeks and costs £50K-£200K: legal (£30-80K), accounting/audit (£20-60K), technical assessment (£10-40K), other professional services.
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