MandM Direct unveils IPO plan as former N Brown boss Alan White is appointed chairman

The online discount fashion retailer, which sells fashion, sports and outdoor clothing, revealed it wants to raise £12.5m to repay outstanding debt and boost the etailer’s international growth strategy.

Although MandM didn’t comment on the offer price, the IPO is expected to value the business at about £140m to £170m.

MandM’s current chairman Mike Tomkins will stay on the board after the IPO when White takes over, working alongside MandM chief executive Jonathan Brown. Former John Lewis finance director Marisa Cassoni and founder of online consultancy eCommera Michael Ross have also been appointed to the board as non-executive directors.

White said: “MandM Direct’s management team has built a leading online off-price retailer and is highly regarded by its suppliers, with exciting prospects for the future. MandM Direct’s long-standing trading relationships with many international brands allow the company to offer outstanding discounts to customers.”

MandM revealed it grew EBITDA 21% to £10.5m in the year to February 23. Total sales in the period jumped 9% to £118.9m with £13.5m sales from its international business and £105.4m sales from the UK.

MandM Direct offers discounts of up to 75% off the recommended retail price on brands such as Adidas, Converse and Fred Perry.

MandM Direct said it wants to launch localised overseas websites in “several” destinations in the next 18 to 24 months. It said it has a low-cost roll-out model with recent launches requiring less than £20,000 initial investment and will break even within one to two years.

It already operates local language sites in Ireland, Germany, France, Austria, the Netherlands and Poland but there is scope to grow as it delivers into 18 European countries that do not have country specific websites.

The etailer will also drive UK growth by improving its range, its brand awareness and develop new customers through new fascias.

Canaccord Genuity is acting as its advisor and joint bookrunner and Investec is acting as joint bookrunner.