Online retail group The Hut is preparing for a stock market listing early next year as it rides a wave of acquisitions and the uptick in consumer spending.
The float is likely to value the business at about £350 million and would net founder and majority owner Matthew Moulding with a significant windfall.
The Financial Times said the estimated value was about 25 times this year's expected ebitda. The newspaper quoted Moulding saying he was 'seriously considering' the plan.
Other shareholders include former Matalan cjhief executive Angus Monro, former Tesco chief executive Sir Terry Leahy, former Marks & Spencer boss Sir Stuart Rose and recently appointed chairman Richard Pennycook, previously finance director at supermarket Morrisons.
Investors, which also include prolific internet investor Balderton Capital, have contributed £68 million since 2010.
It will be the biggest listing for an internet retailer since Ocado. Online white goods seller Appliances Online, which recently rebranded as AO, has already appointed JP Morgan and Jefferies to advise it on a potential £300 million float later this year.
The Hut, which owns 15 websites, previously abandoned plans to float the business in 2011. Barclays is expected to act as adviser to the float which is expected to take place in April or May if it goes ahead.
Last year the group reported its first pretax profit following a shift into higher margin clothing, health and beauty products and away from relying on CDs and DVDs. In the first half of this year sales at The Hut increased 30.3 per cent to £77.1 million. It said profit growth was 'significantly ahead' of sales growth.
Full-year sales are expected to be £190 million with ebitda of £15 million.
Own brand sales now represent 39 per cent of sales and international orders make up 37 per cent of group sales. It also provides technology services to other firms including Unilever.
The Hut's sites include music site Zavvi.com, gadget seller iWantOneOfThose.com, luxury and clothing sites MyBag.com, AllSole.com and Coggles.com; cosmetics sites BeautyExpert.com, LookFantastic.com and Mankind.com and supplements sites MyVitamins.com and MyProtein.com.
The Hut has agreed a £24 million facility with Barclays amid suggestions it may seek more acquisitions before a possible float. It has also hired former Amazon, eBay and Last FM executive Phil Wilson as chief technology officer.
Moulding said of the results: '2013 has witnessed another step-change in the group’s data driven retailing capabilities. Our continued investment in both people and technology is a key driver behind the continued high levels of growth in sales, profitability and cash-flow across the group.
'The progress we've made puts us on target for delivering at least 50% of the group’s sales from both our own lifestyle and health and beauty brands as well as from international markets in 2014. To assist us in reaching this goal, we will continue to focus on attracting elite talent to the group as well as on-going investment to enhance our proprietary technology platform.' he said.
But the Financial Times said the site may aggravate luxury clothes and cosmetics suppliers with its discount focused model. It also said The Hut is in a dispute with former MyProtein.com owner Oliver Cookson over 'representations made before the sale.'
Cookson sold his business to The Hut in 2011 for £58 million and took a 10 per cent stake in the group as part of the deal. He resigned from the board last year to set up a rival company.
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