Tendam abandons IPO plans
Spanish clothing group Tendam, the owner of brands such as Cortefiel, Fifty, Women’Secret, Springfield and Pedro del Hierro, has shelved plans for an initial public offer after considering a flotation during 2018.
This was confirmed by the group’s chief executive officer Jaume Miquel in an interview with trade newspaper El Economista.
“The board’s decision is to carry out the strategic plan and consolidate our growth by continuing to generate cash and reduce debt,” he said.
Over the last two years, the group has cut its debt pile by half from €1 million to €0.5 million, improving debt-to-EBITDA ratio to 3.1x.
In recent months, Tendam has been enjoying a stronger performance with profits reaching €43.4 million in the first nine months of the year. Sales grew to €801.7 million during the same period.
The group is also benefiting from an increase in online sales. Its e-commerce channel currently accounts for 7.8% of total sales, and the chief executive expects this proportion to rise to 20% over the next five years.
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