Convenience store chain McColl’s eyes IPO

27th January 2014
proactiveinvestors.co.uk
Convenience store group McColl’s has unveiled its blueprint for a stock market float at the end of next month.
The company, which runs 714 convenience stores and 562 newsagents under the Martin’s brand, hopes to raise £50 million in the IPO, with the proceeds used to pay down debt
The plan is to increase the number of convenience stores under its watch to 1,000 and reduce the number of newsagents to 350.
Revenues rose to £869mln last year with underlying earnings (adjusted EBITDA) of £35mln. The increase in sales and profit came largely from convenience stores, hence its decision to focus on that business.
Over Christmas, total sales rose 2.6%, with like-for-like sales up 1.5% in the six weeks to January 5.
The IPO will see Cavendish Square Partners, a joint venture run by private equity group Coller Capital, sell part of its stake in McColl’s. The JV was set up in 2010 to buy the assets of collapsed mortgage lender HBOS.
McColl’s is expected to have a free float of at least 50% upon joining the stock market