Herefordshire online retailer MandMDirect announces intention to float on AIM
WEST Midlands-based online clothing retailer MandM Direct has announced its intention to float on the London Stock Market with reports the IPO could be worth somewhere between £140m to £170m.
The firm is the latest West Midlands retailer to float following recent moves by Poundland and Patisserie Holdings, and provides a further indication of the recovery in the sector.
The Leominster firm was founded in 1987 and has grown to become a leading online retailer selling discounted branded ranges from companies such as adidas, Converse, Diesel, Helly Hansen and UGG at reductions of up to 75% off RRP.
It is effective because it acts as a clearing house for brand owners needing to rid themselves of large batches of excess stock.
The Leominster-based firm, which is planning to trade in the Alternative Investment Market (AIM), has established local websites in the UK, Ireland, Germany, France, Austria, the Netherlands and Poland, serving 1.3m active households.
In FY14, MandM Direct reported core revenue of £118.9m and EBITDA of £10.5m, an increase of 9% and 21% respectively on the prior year.
It said it had seen consistent investment over recent years across all major parts of its operational infrastructure, which the directors believed underpinned a scalable business model.
With growth in mind, the company has said it intends to launch dedicated country websites in further geographies in the coming 18-24 months.
The firm’s senior management team is led by CEO Jonathon Brown, previously Online Director at John Lewis.
The board of directors will be chaired post IPO by Alan White, the former CEO of Manchester-based N Brown Group.
Jonathon Brown said: “We believe that MandM Direct’s success is founded on offering strong brands at discounts of up to 75% off RRP. This proposition is underpinned by long-standing trading relationships with brand owners for whom we are a highly regarded solution to moving excess stock while seeking to protect their brand image. It has enabled us to build an active customer base of 1.3m households.
“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. This listing represents an exciting stage in our development and will give us the opportunity to further accelerate our growth.”
Alan White, Chairman-elect, added: “MandM Direct’s management team has built a leading online offprice retailer and is highly regarded by its suppliers, with exciting prospects for the future. MandM Direct’s long-standing trading relationships with many international brands allow the company to offer outstanding discounts to customers. I am delighted to be involved with MandM Direct at this stage of its development and am looking forward to working with the high calibre executive team and board which the business has in place.”
