£80m engineering firm set for stock market listing
A GROUND engineering business, with seven offices including one in Manchester, is set to begin trading on the AIM market tomorrow, with a market capitalisation of £80m.
The IPO has raised £40m of funds, which in part is to be used to support further growth and diversification, both organically and via targeted acquisitions.
Van Elle is led by co-founder and chairman Michael Ellis and chief executive Jonathan Fenton. It operates across the UK with offices in Nottinghamshire, where it is headquartered, as well as Warrington, Hereford, Norfolk, Tyne and Wear, and Scotland.
The company has seen its turnover increase to £84.2m for the year to the end of April 2016, from £45.6m just two years earlier. Its operating profit stood at £11.1m, up from £3.1m in 2014.
The company’s significant growth has been driven both by market share gains and diversification into higher value specialist services, aligned with infrastructure markets.
The deal has been led by corporate financiers Neil Mitchell and Kaine Smith from Rickitt Mitchell in Manchester, with support from Eversheds corporate team (Alistair Cree, Nicola Brookes) and Deloitte (Jodi Birkett, Paul Leather, Tim Grogan) as reporting accountant.
Neil Mitchell, partner at Rickitt Mitchell, said: “It is a high quality business, well positioned in its end markets and generating strong margins. Michael Ellis, Jon Fenton and the rest of the management team are first rate and will continue to develop the significant opportunity ahead for Van Elle.
“The AIM market provides the ideal platform for Van Elle to continue its development both organically and through selective bolt-on acquisitions. ”
Michael Ellis, founder and non-executive chairman, said: “We have worked tirelessly over the last 32 years to build the company in to the established market leader that it is today. I would like to thank Rickitt Mitchell and the advisory team built around us that have provided excellent strategic advice and long term support to reach this historic milestone in our development.”
Peel Hunt is acting as broker and nominated adviser and finnCap were lead manager.
