Computer Business Review

MandM Direct set for £170m IPO

by Michael Moore| 04 June 2014

Discount retailer looks to float on AIM market later this month.

MandM Direct has become the latest UK online retailer to reveal it is preparing for a flotation, in a move which could value the company at as much as £170m later this month.

The retailer, which sells excess stock for well-known clothing, shoe and sports brands at as much as 75% off, as well as its own-brand goods, filed a notice with the London Stock Exchange announcing its intentions to float for an IPO on the AIM market by June 26.

In a statement, MandM Direct, which is currently owned by private equity firm TA Associates, said it had launched in three new markets over the past six months and was intending to target further territories over the next two years.

It hopes the flotation will initially raise around £12.5m, which the company will use to repay existing debt, transaction related fees and provide additional flexibility to help accelerate its growth strategy, as it looks to build new sites for the 18 other countries it delivers to.

"This listing represents an exciting stage in our development," chief executive Jonathan Brown said.

"We are well positioned to benefit from the trends towards online retail and have a clear strategy to develop our UK and to expand our European businesses."

Founded in 1987, MandM Direct has established local websites in the UK, Ireland, Germany, France, Austria, the Netherlands and Poland, serving 1.3 million active households as at 14 May 2014.

In its FY14 results released in February, the company reported core revenues of £118.9m, an increase of 9% on the previous year.

94% of these revenues come from shoppers using online devices such as smartphones, tablets and PCs in the seven markets listed above, with the remaining 6% made from telephone and by mail, which is only available in the UK.

Source: Company Press Release

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