The Works announces £100m stock market float

Books, toys and stationery retailer The Works is to float on the London Stock Exchange in a listing which values the business at £100m.

The offer price has been set at 160 pence per share and is expected to raise £65.2m, of which £28.5m is for the company and £36.7m for selling shareholders, including Leeds-based private equity house Endless which has backed the company since 2008 and earlier this year rebuffed rumours of a potential float.

The £24.8m of net funds being raised by the company will be used to repay debt.

The Works is backed by a management team experienced in stock market listings.

Its CFO Gavin Peck spent seven years as commercial finance manager then commercial director at Wakefield-based Card Factory, which floated in 2014, while The Works’ chairman Dean Hoyle, chairman of Premier League club Huddersfield Town, was the founder of the greetings card retailer.

The group has delivered significant organic growth in underlying revenue and underlying EBITDA. For the three years ended 29 April 2018, underlying revenue increased at a CAGR of 14% to £189.3m while underlying EBITDA increased at a CAGR of 14.1%. to £12m.

Chief executive Kevin Keaney said: “Today represents a significant milestone for The Works and we’re extremely pleased with the level of interest we’ve received from investors in our business. They’ve seen what our customers see every day – a unique and exciting retail experience that combines value, quality and variety that’s available online and in-store. With a highly experienced management team, energised staff and compelling offer, we are well-positioned for further growth. We’re grateful to our exiting shareholders Endless, whose support has enabled us to get here today and look forward to welcoming new shareholders to join us in this exciting new chapter for the business.”

The group, has a nationwide network of over 447 branches and over the last three years it has opened 134 new retail stores and concessions.

Last year, the business relocated to a new 183,000 sq ft support and distribution centre in Coleshill, Birmingham which provides the capacity and capability to support up to 1,000 stores and concessions.

Leeds-based Walker Morris provided legal advice to The Works, led by corporate partner Richard Naish, who was supported by Debbie Jackson, Adrian Moss, Rebecca Austin-Heath, Marianne McKeown and Mark Scoles (Corporate); Michael Taylor and Ricky Walker (Banking & Finance); Andrew Rayment and Suzanne Treen (Employment); and Cameron Baloyi Rigby (Real Estate), as well as specialist lawyers from its commercial contracts, IP and tax/share schemes’ teams.

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