Wednesday January 1st 2020
Supermarkets - Education data - Casual dining – Adtech
- Consumer lending - Legal AI - Bollards –
Defence - Accounting
Booths £276.6m | Hotcourses £11.1m | Patisserie Valerie £114.2m | Brainlabs | Lendable | Luminance | ATG Access £12.5m | Accuracy International £13.2m
Off-GRID: BDO £428m
News about 9 UK growth companies and/or accelerators + turnover in the GRID marketplace 26th November – 2nd December 2017
BOOTHS: Supermarkets - Lancashire
Booths up for sale after 170 years | Sabah Meddings, The Sunday Times. November 26, 2017
DZ profile: E.H.Booth & Co., Limited (Booths)
Business: chain of high-end supermarkets in Northern England. Nicknamed the “Waitrose of the North” in the grocery trade, Booths has 28 shops in prime locations across Lancashire, Cumbria, Yorkshire, Cheshire and Greater Manchester.
Location: Preston, Lancashire
Founder: tea dealer Edwin Henry Booth, with the opening of the China House in Blackpool
Staff: more than 2,800 people. Edwin Booth, 62, chairman and chief executive
Financials: … spell of turbulent trading that saw it fall to a loss of £6.3m last year Last year’s loss compared with a £1.1m profit a year earlier. Nonetheless, there had been fears that Booths would breach loan terms. Sales slipped by 0.7pc to £276.6m during the year to the end of March 2016.
Investment: The family, which is divided into different factions, owns about 96% of the company with the rest owned by staff.
News: Booths has hired advisers from NM Rothschild to solicit takeover bids. Retail industry sources estimate the chain will fetch between £130m and £150m, although the family is said to be holding out for a substantially higher price. The family has resisted rumoured approaches from rivals in the past, including SAFEWAY and WAITROSE. However, the sales process is expected to prompt all Britain’s big grocers to run a slide rule over the business. …and possibly AMAZON, after buying Whole Foods in the US. NB Booths’ website: “Back in October Booths announced it’s agreement with Amazon Fresh.”
HOTCOURSES: Education data - London
Japanese spark success of degree guides | Peter Evans, The Sunday Times. November 26, 2017.
DZ profile: Hotcourses Ltd
Business: started with a printed directory of degree courses, and now operates websites including The Complete University Guide and Postgraduate Search. Hotcourses began to move online at the turn of the century and no longer prints any of its student guides.
Location: has offices in Fulham, southwest London, Delhi, Chennai, Boston and Sydney.
Founders: Mike Elms and his business partner — the future health secretary Jeremy Hunt, both 51. The MP stood down as a director of Hotcourses in 2009, although he retained his stake. Elms has moved from chief executive to chairman. The co-founders reportedly made more than £14m each from the sale. Hunt, thought to be the richest member of the cabinet, has said he will use the money to campaign for causes he believes in once he leaves politics.
Staff: more than 300
Financials: last year reported a pre-tax profit of £2.6m on £11.1m turnover
Investment: Last year, Australia’s IDP Education bought Hotcourses in a £30m deal.
News: In 2005, the business started collating student reviews of their courses. At the time, the concept was controversial and Hotcourses’ biggest customer threatened to sue if it received negative comments. Today, it is the norm for students to publicly voice their opinions — a change that Elms takes credit for. “The idea that students are now the customers — we’ve been at the vanguard of that shift.”
PATISSERIE VALERIE: casual dining – Birmingham.
Patisserie Valerie curbs plans for London shops as sales surge | Laura Onita, The Evening Standard. November 27, 2017.
DZ profile: Patisserie Holdings Plc
Business: “a leading UK branded café and casual dining group offering cakes, pastries, snacks, meals and hot and cold drinks from over 180 stores and Flour Power City Bakery in the UK. It currently operates under five differentiated brands – Patisserie Valerie, Druckers – Vienna Patisserie, Philpotts, Baker & Spice and Flour Power City. The Company operates a vertically integrated business model, with all products made in-house at seven bakeries and delivered fresh daily. Products are sold primarily through stores and also a growing online channel.”
Founder: The first Patisserie Valerie café was opened on Frith Street in London’s Soho district in by Belgian-born Madame Valerie
Staff: Executive Chairman Luke Johnson, veteran entrepreneur; Paul May, CEO
Financials: Sales climbed 10% to £114.2m in the year to September 30, and pre-tax profits grew 17% to £20m. Shares were up nearly 6% to 331p. Earnings were boosted this year by a tie-up with SAINSBURY’S, which allows Patisserie Valerie to sell the grocer’s cakes through counters at 28 of the grocer’s stores.
Investment: RISK CAPITAL PARTNERS, the London-based private equity firm, co-founded in 2001 by Luke Johnson and Ben Redmond, backed the acquisition of Patisserie Valerie in 2006.
News: plans to add a further 16 stores to its existing 199 next year and is likely to concentrate on expansion outside the M25.
BRAINLABS: Adtech - London
The Brain behind Brainlabs: Dan Gilbert talks robots, advertising, and the merits of being positive | Elliott Haworth, City A.M. November 27, 2017
DZ profile: Brain Labs Digital Ltd (Brainlabs)
Business: market leading adtech firm. The firm specialises in Pay Per Click advertising – both providing proprietary technology to customers, and running ad campaigns as an agency. Brainlabs is the fastest growing business in the UK, and the fourth fastest in Europe. The firm moved to its new home in Old Street in June due to rapid expansion
The firm is already in the States, with plans to expand into Europe in the making.
Location: Old Street, London
Founder: chief executive Dan Gilbert - Oxford-educated, Twitter famous ex-comedian
Staff: From one to 170 people in five years
News: Sophie Newton, the firm’s chief operating officer, implemented a “Gender Pay Gap Tax” to level the playing field.
LENDABLE: Consumer lending - London
UK consumer lending start-up raises £300m to make new loans | Kadhim Shubber, FT. November 27, 2017
DZ profile: Lendable Ltd
Business: British start-up that lends to consumers with loans of up to £20,000 at interest rates between 4.7 to 40 per cent.
Location: London E1
Founders: Martin Kissinger, chief executive
Investment: backed by private investors in PASSION CAPITAL, a government-backed venture capital firm that cannot invest directly in financial services as a condition of its state funding.
1. has raised £300m for new loans from CASTLE TRUST, a specialty lender backed by US private equity firm JC FLOWERS, to purchase the start-up’s loans over three years is the latest institutional investment in a sector previously dominated by retail investors. … the second deal struck this year … In March, Lendable agreed a £100m deal with New York-based WATERFALL ASSET MANAGEMENT.
2. ZOPA, the UK’s oldest “peer-to-peer” lender, has been lending to riskier consumers in recent years but returns have stayed flat — a sign of the competitiveness in the market. However, investor demand has remained strong. In September, a securitisation of £200m of Zopa’s loans was sold at a significantly better price than its first deal last year. Anthony Parry from the rating agency Moody’s …said that investors were becoming more comfortable with fintech-originated loans.
3. … growing trend of institutional involvement in UK marketplace lending, mirroring developments in the US. In August, FUNDING CIRCLE, the UK’s leading peer-to-peer lender to small businesses, announced a four-year deal to purchase its loans with Dutch insurer Aegon that was worth £160m in the first year alone. According to AltFi Data, institutional investors now account for between 50-60 per cent of loan volume in UK marketplace lending, up from just 5-10 per cent at the start of 2015.
LUMINANCE: Legal AI - Cambridge
Luminance, a London startup using AI to help lawyers, just raised $10m | Lynsey Barber, City A.M. November 29, 2017
DZ profile: Luminance Ltd
Business: artificial intelligence to help lawyers do their job better – its AI platform can crunch documents without humans. The Luminance platform helps those in the legal world analyse contracts such as M&A deal documents.
Investment: has raised $10m (£7.5m) from investors that include Mike Lynch's INVOKE CAPITAL and law firm SLAUGHTER AND MAY, led by TALIS CAPITAL. The fresh cash values the London startup at $50m
News: expanding to the US, where it is establishing a headquarters in Chicago.
Guns, drones and surveillance: the firms who make money by keeping London safe | Jim Armitage, The Evening Standard. November 29, 2017.
Accuracy International's sales are growing at a fair clip | Jim Armitage, The Evening Standard December 1
The Metropolitan Police has London on a “severe” threat level. That means a terrorist attack is “highly likely”. To counter the bad guys, Britain has invested more than any other country to make its streets safe, be that with security bollards to protect pedestrians or beefed-up surveillance technology.
The Met increased spending on weapons and ammunition six fold in the past year, largely because of the terror threat. In response to a Freedom of Information request, it said it spent £9.4 million on guns, bullets, Tasers and smoke and stun grenades as the force builds back up to 2010’s level of having 7000 firearms officers.
ATG ACCESS: Bollards - Liverpool
DZ profile: ATG Access Ltd
Business: Makers of Westminster security bollards: the slim, black-painted bollards often featuring the Westminster crest or that of other boroughs, depending on the geography. … made from manganese steel. ATG also makes the cylindrical telescopic bollards that rise or retract from the road to block or open access.
Staff: Glenn Cooper, CEO. Gavin Hepburn, sales and marketing director.
Financials: Sales have grown from £12.5m in 2015-16 to an expected £20m this year. Last year, the company made £1m profit and paid a £2m dividend, with a growing order book overseas.
Investment: backed by private equity firm LDC
ACCURACY INTERNATIONAL: Defence - Surrey
DZ profile: Accuracy International Limited
Business: makes the most accurate snipers’ rifles in the world. When Malcolm Cooper shot a world record, word got out fast, and the Special Boat Service, then the SAS, placed big orders, followed by the Ministry of Defence.
Location: Crawley, Surrey
Founders: Founded by three national champ target shooters in a garage: England shooter and toolmaker Dave Walls, Scotland rival Dave Caig; Malcolm Cooper – later a gold medallist at the Los Angeles and Seoul Olympics.
Staff: 80 skilled staff in the UK. Chief executive, Ian Irwin
Financials: profits jumped this year to £494,000 from £364,000 a year earlier on revenue up £1m to £13.2m, although UK sales were broadly flat at £2.3 m. Sales are growing at a fair clip, with military exports growing around the world and especially strongly in the EU.
News: A nasty hiccup came when 3i bought it and loaded it with too much debt. It went bust in 2015, but has since rebuilt itself.
BDO: accounting firm - London
BDO ‘pleasantly surprised’ by business since Brexit vote | Madison Marriage, FT. November 30, 2017
DZ profile: BDO LLP
Business: the world’s sixth-largest accounting firm
Staff: Paul Eagland, BDO managing partner, who was elected to lead BDO’s UK business a year ago
Financials: posted an 11 per cent rise in UK profits in the latest financial year to £88m, boosting pay per partner by more than a fifth to £454,000. Revenues in BDO’s tax division rose 7 per cent to £135m, while revenues from its audit practice, which remains the largest part of the business, grew 5 per cent to £151m. This helped boost underlying revenues by 6 per cent to £428m in the 12 months to the end of June.
1. BDO initially cut its spending budget for 2017 in anticipation of a slowdown, but reversed that decision when clients decided to push ahead with plans, according to Mr Eagland. This enabled BDO to hire 953 staff in the latest financial year, up from its yearly average of about 700.
2. … an area of focus in the coming months would be attempting to win audit and non-audit contracts from FTSE 350 companies.