Irish-backed UK fashion group set for AIM flotation
A ST PATRICK’S Day stock market floatation of UK ‘fast fashion’ brand In The Style is poised to generate a significant return for investors including AIB and the Ireland Strategic Investment Fund.
The Manchester-based fashion group confirmed that it’s going to float on London’s Alternative Investment Market (AIM) this month. It’s been expected that the move could value the company at about £100m (€115m).
Founded by chief executive Adam Frisby (33) in 2013 from his bedroom with £1,000, the company generated net sales of £35.4m in the nine months to the end of last December. Its adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) of £3.6m.
Targeting customers in the 16-35 age group, In The Style (ITS) partners with wellknown celebrities who have strong social media presences to help fuel its sales.
Among those that have enlisted to endorse its products are Love Island star Dani Dyer and Made in Chelsea’s Binky Felstead.
Dublin-based Causeway Capital invested £2.5m in ITS in early 2018, taking a 49pc stake in the business. Causeway, which was established in 2015 by investors including Helix Health founder David Raethorne and Matt Scaife, who was chief financial officer at Helix. A software firm, Helix Health was sold for €40m in 2014.
The investment in ITS was made via a 2016 fund set up by Causeway. That fund was backed by the Ireland Strategic Investment Fund and AIB.
ITS, which is being advised by Liberum Capital on its floatation plans, said it has delivered unbroken revenue growth since it was started in 2013 and had an active customer base of 700,000 shoppers at the end of December. That’s 61pc higher than a year earlier.
“While government restrictions due to the Covid-19
pandemic increased the proportion of potential customers shopping online, the growth in new customers has been driven by a number of business and product strategies including the expansion of its product ranges and an increase in the frequency of collaboration launches,” it told potential investors in its prospectus published on Monday.
The company yesterday announced two new non-executive director appointments, including technology entrepreneur Nancy Cruickshank, who is also a non-executive director at Paddy Power owner Flutter Entertainment.
Mr Frisby said that ITS has “strived to do things differently” since it launched.
“Our collaboration model creates a strong customer connection, drives highly efficient customer acquisition marketing metrics and gives us exposure to a broad range of customers,” he added.
ITS points out that its products are design-led rather than price-led. About 85pc of its products are designed and developed in-house.
“The emphasis is on offering unique pieces, designed and developed in conjunction with the relevant influence, rather than offering products at the lowest possible price points,” according to the group’s prospectus.
It noted that sales of items that have an influencer attached accounted for 87pc of total sales in the nine months to the end of December. It said its own-brand product lines represent “a strong additional growth opportunity”.