Retailer Bonmarché, which caters to women over the age of 50, is set to float on Aim in November, offering investors a chance to gain exposure to the fast growing 'value' segment of the general retail sector.
The business was part of Peacocks, but acquired by private equity group Sun European Partners in January 2012 when Peacocks fell into administration. In the year to 30 March, it generated underlying cash profits of £9.1m on £146.8m of revenue and at the half-year stage in September, like-for-like sales were up 12.7 per cent. But retail analyst Nick Bubb says Bonmarché "never made much money" when it was owned by Peacocks and that it's "not clear how it has been turned around so quickly by Sun European".
Bonmarché sells mostly own-branded clothes, shoes and accessories from 264 stores, online, through mail order catalogues, over the telephone and via a TV shopping channel. It's known to have a fiercely loyal customer base - in the last half year more than 70 per cent of total sales came from club members - and according to the group, none of the bricks and mortar shops are loss-making. The IPO will raise money to enhance the product range, develop the store portfolio and beef up the multi-channel offering, according to chief executive Beth Butterwick, who started her career at Marks & Spencer (MKS).
