Dutch group TMF prepares for IPO ahead of Brexit ‘opportunities’

BUSINESS SERVICES firm TMF Group is lining up one of the biggest flotations on the London Stock Exchange this year with a €340m (£303m) cash raising.

The Dutch group, which counts Netflix and LinkedIn among its clients, plans to use the funds to drive down its debts and reduce leverage.

While Brexit uncertainty has put the brakes on some flotations this year, TMF intends to switch its headquarters from Amsterdam to London following the IPO, which is scheduled for November.

TMF helps companies cope with the regulatory challenge of expanding into a new country, from gaining trade licences to filling in tax returns.

The firm, which employs 7,000 people across 80 countries, said Brexit could provide an opportunity as some UK companies look to shift operations overseas.

Chief executive Frederik van Tuyll said the business was primed to benefit from a “rapidly changing and increasingly complex” regulatory environment across the world.

He said: “Looking forward, we continue to see a number of highly favourable drivers for our business, which when combined with our growth plans, gives the board confidence in our future prospects. Within this context, an IPO is the next logical step for TMF Group.

“It will enhance our profile with existing and potential clients, provide us with access to capital markets for future growth and enhance our ability to attract and retain the best talent in our industry.”

TMF Group, which has been owned by DH Private Equity Partners since 2008, saw revenues rise 8 per cent to €529m (£471m) last year, while earnings lifted 6 per cent to €138m (£123m). However, its loss before tax widened over the period from £42.1m in 2015 to £63.7m last year.

TMF’s IPO comes as other flotations struggle to get off the ground, with mobile operator O2 and price comparison site Compare the Market expected to launch listings next year.