ScS private equity owners line up £35million stock market listing

The Sunderland-based furniture retailer ScS is set to float on the London Stock Exchange at the end of January

ScS
ScS

Sunderland furniture retailer ScS has revealed its intention to float on the London Stock Exchange with hopes to raise £35m for its private equity owners.

The firm, which employs around 1,400 people across the UK, announced a placing of 20.4 million ordinary shares at 175p per ordinary share – giving ScS a market capitalisation of £70m.

The listing represents an exit for US private equity firm Sun European Partners LLP, which bought ScS out of administration in 2008.

Through Parlour Products Holdings, an affiliate of Sun European Partners, the firm hopes to make £35m from the float.

Under Sun’s ownership ScS posted pre-tax profit of £4.1m for the year to July 27, 2013, up from a pre-tax loss of £1.1m.

Ex-Somerfield boss Alan Smith has been brought in as chairman to lead the move. Along with chief executive officer David Knight and chief financial officer Ron Turnball, and other senior managers, Mr Smith will have interests in 8.2% of the issues ordinary share capital.

David Knight, chief executive officer of ScS, said: “We have made significant progress over the past 6 years. We are now a bigger and better business with more diverse revenue streams demonstrated in particular by the success of brands within our sofa offering as well as our flooring offering.

“We are now well placed to capitalise on this growth and are delighted that our initial public offering has been successful and we will be returning to the London Stock Exchange.

“We are very grateful to Sun European Partners, LLP for their support during this period of transition and all my colleagues who have made ScS the success it is today. An IPO is a natural step for the Company, we welcome our new shareholders and are very excited about the significant opportunities that remain ahead of us.”

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