Online retailer The Hut Group has ruled out floating on the London Stock Exchange following concerns about unsustainable valuations and volatile share prices.
The Hut Group chief executive Matthew Moulding said the company had “no need to raise funds” and had returned £13m to investors, which include private equity group Balderton as well as retail heavyweights Sir Terry Leahy and Sir Stuart Rose.
The etail group, which owns 15 websites and also bought York retailer Coggles last year, said it did not want to get “caught in the cross fire” of high valuations from other IPOs and volatile share prices, according to The Financial Times.
In the year to December 31 pre-tax profit at The Hut Group increased from £308,000 to £3.97m and EBITDA increased from £10.1m to £15m. Total sales increased from £157.2m to £184.3m.