M and M Direct, the casual clothing and sportswear website, has appointed Canaccord Genuity to advise it on a possible stock market float.
An IPO (initial Public Offering) could value the business at up to £150 million, according to sources. M and M Direct increased pretax profit by 146 per cent to £6.3 million in the year to February 2013, its most recent set of publicly reported figures.
Sales in the same period increased 7.4 per cent to £113.4 million.
M and M Sport was founded in 1987 and the catalogue launched in 1993. US private equity firm TA Associates acquired M and M Direct in 2007 for £86 million from ECI Partners.
Profit at the business peaked £11.4 million in the year to February 2010 on sales of £107.8 million. But it appeared to struggle during the following two years against competition from the likes of Sports Direct which had improved its online offer and increased its exposure to the casualwear market as well as Asos which had introduced a discount offer in 2008.
The etailer began restructuring its management team with a merger in May 2011 of its kidswear and womenswear buying teams under Emma Tilby. It then appointed John Lewis online director Jonathon Brown as chief executive in July 2012.
No comments:
Post a Comment