Some 38 AIM-listed cash shells (with a combined £13.3 million to their name) have until the start of October to line up a deal or face stock market expulsion, new research from Business XL magazine has revealed.

The report, which is the latest in a series of annual surveys from GrowthBusiness.co.uk’s sister publication, shows that AIM’s stable of cash shells (which offer an alternative route to flotation) could be on the verge of decimation. Rules introduced by the London Stock Exchange late last year, led to all shells more than a year old or with less than £3 million on their balance sheet to be suspended from trading in April and were given just six months more to identify businesses to buy.

A handful – including Bora Communication, which recently allowed smart-fabric business Eleksen to reverse into it in an £18.9 million deal – have succeeded. Yet a total of 38, headed by EP&F (with £1.7 million to its name), Camelot Capital (£1.5 million), Pannal (£1.5 million) and Gasol (£1.4 million), are fast running out of time to identify targets.

Overall, Business XL’s research revealed that AIM is now home to a total of 97 shells, with £91.5 million sitting in the bank and a combined market valuation of £562.9 million.

Further information on each of these companies can be found in the full Cash Shells 2006 report.