Stead & Simpson Heading For Floatation

Stead & Simpson, one of the UK's longest-established retailers, is considering a stock market float or sale as part of a review of options for the business. Development Securities, the investor which holds 38 per cent of the company, has appointed Clearwater Corporate Finance to carry out a strategic review which will consider a wide range of exit options. These include a possible flotation as well as a sale.

The group operates 400 stores across a variety of fascias including Shoe Express. In the year to January 1, Stead & Simpson's pre-tax profits rose to £8.9m from £4.6m a year ago, with sales up £140.3m from £130.1m in 2003. Chief executive David Lockyer said the improvement was driven by a combination of stores refurbishments and an increase in branded ranges. He said the strategic review would allow the company to fund its next stage of "significant growth".

Founded as a footwear manufacturer in 1834, the group has focused on retail since the 1960s. Development Securities bought a stake in Stead & Simpson in the 1980s, while the 1990s saw acquisitions of chains including Famous Footwear and Peter Briggs as well as Shoe Express. Chairman John Shannon, chief executive Lockyer, and finance director Peter Foot bought out private equity backer Apax last year. City estimates of a £90m stock market valuation of the business would value their combined share at around £55m.