News Column

Three More Companies Added To London IPO Pipeline

May 6, 2014

Steve McGrath

LONDON (Alliance News) - Three more companies add their names to the fast-expanding pipeline of London initial public offerings Tuesday, as Clipper Logistics said it intends to float on the main market, while accounting software company Big Red Cloud Group PLC and online advertising company Marimedia Ltd said they will list on AIM.

Clipper, which was founded in 1992 by the company's current chairman, Steve Parkin, helps UK retailers with logistics and their online operations. Its customers include ASOS, Tesco, Asda, Wm Morrison Supermarkets, SuperGroup and The John Lewis Partnership. The company also has a small German operation.

It now wants to raise money to expand further, taking advantage of increased internet shopping.

Parkin is expected to remain Clipper's biggest shareholder after the IPO, although the company expects to have a free float of about 49.9% of the shares in issue.

The company made adjusted earnings before interest and tax of GBP8.7 million in the year to April 30, 2013, flat on the previous 12 months, while revenue rose to GBP29.6 million, from GBP19.3 million. It estimates that adjusted EBIT has risen to GBP9.6 million in the current financial year.

Big Red Cloud Group, meanwhile said it expects to raise EUR5.0 million in a placing on AIM, and will use the money to develop its products, expand in Ireland and move into the UK and other new markets.

It is a provider of accounting and payroll software solutions to small- and medium-sized companies, and made revenue of EUR1.3 million and earnings before interest, tax, depreciation and amortisation of EUR72,000 in the year to end-January.

Marimedia Ltd is also seeking to join AIM. It provides technology aimed at optimising online advertising revenue for website owners, and wants to raise new funds to develop its real-time bidding and mobile market capabilities, and potentially to make acquisitions.

The company has a basic revenue model based on charging a fee per action or per impression from advertisers. On average, it retained about USD33 from every USD100 received from advertisers in 2013, with the rest going to the publishers.

It made revenue of USD43.3 million in 2013, Ebitda of USD8.72 million, and cash from operations of USD7.3 million.

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Source: Alliance News