Super deal for PwC
Who?
PricewaterhouseCoopers in Birmingham.
Did what?
Has advised fashion business SuperGroup – parent company of trendy label Superdry – on its flotation on the London Stock Exchange.
What does this mean?
By listing, Cheltenham-based SuperGroup has raised £125m to fund its future growth plans. John Bourdeaux, a retail specialist partner at PwC who advised on the deal, said: “This float has been successful where others have failed due to the company’s excellent financial performance since the launch of the Superdry brand. Its proposition to the market has appealed to a range of institutional and private investors.”
Insider comment:
Supergroup owns the Cult Clothing chain and fashion brand Superdry, is debt-free and owned by its founders and senior management. Julian Dunkerton, founder and chief executive, will retain a majority stake after the sale of approximately a third of the group in the float.
Seymour Pierce is sponsor and sole bookrunner. A valuation of £400m would represent about nine times Supergroup’s forecast 2011 earnings before interest, tax, depreciation and amortisation. That’s ambitious, say analysts, in a sector where the average valuation is between between five and six times annual earnings. Group sales at Supergroup have trebled from £25m in the year to 4 May 2007 to £76m in the year to May 2009. In the same period, earnings rose from £2.5m to £12m. Ebitda is forecast to reach £30m on sales of £135m in the year to April 2010, and £44m in the year to April 2011. Launched on a Cheltenham market stall by Dunkerton in 1985, Supergroup’s sales are dominated by its Superdry brand.
