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Saturday 21 October 2017

Dutch group TMF plans one of London’s biggest listings this year

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

Aerial view of London
Aerial view of London

By Ben Woods, Press Association Chief City Correspondent

Business services firm TMF Group is lining up one of the biggest flotations on the London Stock Exchange this year with a 340 million euro (£303 million) 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 has brushed aside Britain’s divorce from the European Union and intends to switch its headquarters from Amsterdam to London once the IPO is complete.

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TMF Logo

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 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.

TMF Group has been owned by DH Private Equity Partners since 2008, but is looking to list on the main market of the London Stock Exchange in November.

The group saw revenues rise 8% to 529 million euros (£471 million) last year, while earnings lifted 6% to 138 million euros (£123 million).

However, its loss before tax widened over the period from £42.1 million in 2015 to £63.7 million last year.

Richard Hanson, non-executive chairman of TMF Group, said: “Today’s announcement is another important milestone in TMF Group’s exciting growth story.

“We have a differentiated business operating across 83 jurisdictions, with a high proportion of recurring revenues, a proven M&A track-record, significant future potential and a highly experienced management team.

“Becoming a publicly listed company will provide TMF Group with the heightened profile and enhanced transparency that will help us extend and build long-term relationships with customers, regulators and business partners all over the world.”

The 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.

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