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The Works building a plan for IPO: Reuters
Posted on Wednesday, 11 April 2018 13:45
UK-based gift and stationary retail chain the Works is planning an initial public offering (IPO) that could value the company at up to GBP 100.00 million, people familiar with the matter told Reuters.
According to these sources, the private equity-backed firm is working towards a London listing in mid-July, despite the tough retail market for the country’s high streets.
Many brick and mortar firms in the UK have been struggling as of late with a number of large businesses going into administration and many closing their stores in a bid to stay afloat.
The Works, which supplies books, toys, arts and crafts, is working with Investec, which it hired last year to handle the IPO, Reuters observed.
A flotation would also mark the company’s efforts to turnaround since being acquired by buyout group Endless out of bankruptcy almost ten years ago.
Retailers such as Toys R Us and Maplin have not been as lucky as they collapsed into administration earlier this year, with restaurant groups Byron and Prezzo joining others such as Mothercare and Carpetright to close sites as part of restructuring plans with investors.
The Works has about 400 stores and its most recent accounts showed an 8.0 per cent increase in annual revenue to around GBP 166.40 million in April 2017, Reuters reported.
According to another report by the Sunday Times, the group had a record Christmas period with a 15.0 per cent rise in sales year-on-year.
Without citing sources, the paper noted a further 50 stores could be opened this year at the Works.
The arts and crafts company serves roughly 22.50 million people each year, according to its website, stocking over 40,000 products across its range.
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