Vaping firm announces it is to float on the AIM market
Battery and vaping specialist Supreme has confirmed its intention to float on the AIM market.
The Manchester firm is run by high-profile businessman Sandy Chadha who handed over the key of his Bentley after losing a bet.
The business has tapped into the growing demand in recent years for tobacco substitutes.
Stock brokers Berenberg had been appointed to work on the flotation and an announcement has now been made on the Stock Exchange.
Supreme operates three primary divisions: batteries, lighting and vaping, supplying its products to the discount retail, wholesale, independent retail, supermarkets and export sectors with over 3,600 active customer accounts.
The firm is one of the largest branded consumer battery distributors in the UK and has international licensing agreements in place for its lighting products.
Supreme is also one of the largest producers of vaping e-liquids in the UK by volume.
It manufactured an average of over 130,000 bottles of vaping e-liquid per working day at its clean room manufacturing facility in Manchester and sold 690, 000 hardware kits and four million items of vaping hardware in 2017.
Revenues increased to £70.7 million in the year ended 31 March 2017 and EBIT for the year increased to £7.2 million.
The firm has long-lasting relationships with Duracell, Panasonic, Eveready, Energizer, and JCB.
Customers include discount retailers such as B&M, Home Bargains, Poundland, Wilkinsons, Iceland, Poundstretcher and Heron Foods; nationwide retailers such as ASDA and Halfords; and wholesalers and independent retailers such as Booker, Bestway, Costcutter and Nisa.
Chief executive Sandy Chadha said: “Over the last two decades we have established Supreme as a leading manufacturer and distributor of batteries and lighting, and more recently vaping, demonstrating our ability to leverage our extensive distributor and customer relationships to drive growth.
“With a track-record of growing revenues, achieving long-term profitability and strong cash generation, we remain well-placed to build upon this.
“We are excited about our potential flotation on AIM, which I believe will provide a platform from which to execute on our growth ambitions and realise the next stage of our development.”
Mr Chadha made headlines after he lost a bet and handed over the keys to his £130,000 Bentley.
Corporate turnaround specialist Iain Johnston predicted a decade ago that the struggling Supreme Imports would make a profit of £1m a year once it had recovered.
When the prediction came true Mr Chadha tracked down the financier and handed over the keys to his personal car.
