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London-based cryptocurrency firm Blockchain.com is reportedly seeking a US listing for its upcoming initial public offering (IPO) launch, in a potential blow to the growth of the UK cryptoasset sector.
The startup has started interviewing banks ahead of the potential US IPO and could finalise the deal this year.
Sources close to the situation told Bloomberg that the IPO launch might not happen until next year and that the company’s plans could change.
The UK company was recently valued at $14bn (£10.7bn) following its latest round of funding and is one of the country’s largest cryptocurrency firms, claiming to have 37 million active users across the world.
Blockchain.com’s US listing plans come after Chancellor Rishi Sunak announced the Treasury department’s ambitions of turning the UK into a “global cryptoasset technology hub”.
Economic secretary for the Treasury John Glen outlined the department’s steps to grow the UK cryptocurrency industry, which included “legislating to bring certain stablecoins into our payments framework”, as well as the creation of an NFT by the Royal Mint.
Blockchain.com was founded in 2011, making it one of the earliest cryptocurrency infrastructure providers.
Despite being one of the UK’s biggest cryptocurrency successes, Blockchain.com has had difficulty operating in its own home nation. The firm has struggled to receive regulatory approval following a crackdown from the Financial Conduct Authority (FCA) on cryptocurrency trading regulations.
The company was briefly granted temporary trading permission from the FCA as part of a list of 12 companies. However, Blockchain.com lost this temporary approval when the list of companies was reduced to five.
Blockchain.com’ crypto exchange rival Coinbase recently launched its IPO last April, debuting at a valuation of $100bn, although its share value has dropped significantly since then.
Fellow crypto exchange Binance has also been looking into going public. The Binance chief executive said last September that he expects the IPO launch to happen in two or three years.
UKTN has reached out to Blockchain.com for further comments.
Spanish fashion company Mango continues to demonstrate its commitment to sustainability. After closing 2021 successfully with a good financial structure, the company has just extended the maturity date of its syndicated loan, scheduled for 2022 and 2023 and with an outstanding balance of €236 million, until 2028. The company has linked the transaction to its ESG (environmental, social and good corporate governance) criteria. The transaction was led by CaixaBank.
The deal signed on Wednesday, April 19 enables the company to extend its repayment date, improve the cost of its debt and double the availability of revolving credit lines. The agreement also includes a new syndicated loan of €200 million from which €150 million will be amortized on a straight-line basis until 2027, while the remaining €50 million are part of a financing facility that can be used until 2024 for capex investments and could be paid off in a single bullet repayment in 2028 if drawn down.
However, the cost of the loan could be reduced if sustainable targets are met. The company must achieve 100% use of sustainable cotton, recycled polyester and cellulose fibers by 2025, as well as reduce scope 1 and 2 CO2 emissions by 10%.
"This is a historic transaction for the company. Not only is it the first time that we’ve linked the cost of debt to sustainability indicators, but we have also managed to extend the repayment calendar, improved its cost, and doubled our financing capacity," said Margarita Salvans, CFO of Mango.
In addition to CaixaBank, the transaction was coordinated by BBVA and Banco de Sabadell. Banco Santander, Erste Bank, Deutsche Bank, Ibercaja and Unicaja also participated in the transaction, while the Barcelona law firm Broseta served as legal advisor.
This strategic move comes at a time when Mango has just completed the full repayment of the €240 million credit line requested in spring 2020, at the beginning of the pandemic, to the Official Credit Institute (ICO). At the end of 2021, the company had a negative net debt of €8 million.
Founded in 1984 in Barcelona, Mango is present in more than 110 countries through a retail network of 2,447 points-of-sale. Its latest sustainable projects include a collaboration with the company I:CO aimed at promoting circular economy by placing Committed Box containers throughout a selection of its stores allowing clients to recycle their clothing. In fiscal year 2021, Mango generated a turnover of €2,234 million, up 21.3% year-on-year, with the online channel accounting for 42%.
Next is continuing its acquisition spree as it expands in the mother-and-baby market with the purchase of Jojo Maman Bébé in a consortium with a group of finance firms.
It won’t be the majority owner though with the firm taking a minority — albeit a large minority — stake, adding up to 44%. The remaining 56% will be owned by investment companies managed or advised by hedge fund Davidson Kempner.
Next is also making a £16.3 million investment in the brand funded from its own cash reserves.
Next chief Simon Wolfson said: “We are excited to see what can be achieved through the combination of JoJo's exceptional product with Next's infrastructure and Davidson Kempner as our investment partner."
Jojo Maman Bébé’s founder Laura Tenison will leave the business after almost three decades as part of the deal. She was one of the shareholders selling her stake.
Tenison said she was “excited by the opportunities this new partnership will offer”, even though she won’t be part of those opportunities. She also said she was “exceptionally proud” of the brand’s achievements, after leading it “from a kitchen table start-up to being the UK's leading specialist boutique mother and baby brand”.
But while Tenison is exiting, Gwynn Milligan is staying and steps up as CEO after five years at the firm, originally joining as commercial director. Other members of the management team are also staying.
Importantly too, the company will continue to operate its 87 physical stores in the UK, which will come as a relief to its almost-1,000 staff. The report said there will be “no immediate job losses”. However, management also said that Next is keen to continue with any stores that are "running profitably".
The retention of the physical stores is perhaps no surprise as Next is adept at running both physical and online retail operations including both own-brand and other branded stores.
But the move does raise the prospect of future Jojo Maman Bébé concessions opening inside Next stores and it will be interesting to see whether any standalone stores for the label that are close to large Next locations are eventually merged into the larger business.
Apparently, the long-term strategy hasn’t yet been decided on and the brand will stay a distinct entity for the foreseeable future.
Under Next’s aegis, the label is also likely to see major online expansion.
Staff were told the deal would “ensure the longevity of the brand for generations of new customers”.
Next has a history of buying major minority stakes in premium businesses, its purchase of a substantial holding in Reiss being a good example.
Luxury giant Hermès was the latest big name to update on recent trading on Thursday and it reported what we’ve seen elsewhere so far this year — “strong sales momentum across all business lines in all geographical areas”.
In fact, sales rose 33% at current exchanges rates in Q1, reaching €2.765 billion. That was a 27% rise at constant exchange rates, which was perhaps unsurprising given how Q1 last year was marked by lockdowns in many of its markets.
It said sales were “particularly dynamic” in its own stores, especially in America and Europe, driven by the acceleration in all the business lines and “sustained growth” in the Leather Goods division.
Executive chairman Axel Dumas said: “The strong growth in sales at the beginning of this year reflects the desirability of our collections and the confidence of our customers in our artisanal and responsible approach.”
And he added that while the consumer and business backdrop may still be uncertain, the group is “accelerating its strategic investments, recruitments and training to support the growth of all the métiers of the house”.
Getting down to more detail, sales rose by 28% year-on-year in its stores — again likely to have been boosted by the big global reopening compared to a year ago. It also said its network “continued to develop with store openings and extensions, and the strengthening of online sales worldwide”.
Looking geographically, Asia, excluding Japan, was up 20% and benefited from a “very good Chinese New Year and from sustained activity, especially in Thailand, Singapore, and Australia”. However, since mid-March, Greater China has been hit with new health restrictions and some store closures, particularly in Shanghai and Shenyang.
But the company had good news on stores in the region too. Its shops in Hong Kong’s Pacific Place and Macao’s One Central reopened in January and February, respectively, after renovation. A new store opened in Zhengzhou at the end of March, the first for the brand in the Chinese province of Henan.
Meanwhile, Japan sales rose 17%, continuing a general picture of sales rises there.
The Americas surged 44%, with “a strong acceleration at the end of March, thanks to a good momentum in the US”. Hermès is one of a string of latest luxury labels to see sales soaring in the US with that market being particularly buoyant in recent periods.
During the quarter, its South Coast Plaza store reopened on the Californian coast in Costa Mesa, near Los Angeles, after renovation and extension.
There was good news on Europe too, which had been a difficult region for many luxury labels as the tourist flows on which they previously depended became a mere trickle. But this time, Europe, excluding France, saw sales up 44%, and France itself rose 40%.
Of course this was helped by easy comparisons with last year’s lockdowns, but the company also saw “sustained growth particularly in the UK, Germany, Italy and Spain”.
Looking at its individual business units, the company said all divisions saw “strong momentum” by the end of March. RTW and Accessories “accelerated” with 44% sales rises at constant exchange rates, and the 16% growth in Leather Goods and Saddlery was based both on its increase in production capacity and sustained demand. The Silk and Textiles business line (+27%) “performed well” and Perfume and Beauty was up 18%.
Meanwhile, Watches (+62%) “achieved an outstanding performance” and ‘Other’ Hermès business lines (+37%) “confirmed their momentum, thanks to Homeware and Jewellery”.
That leaves the outlook for the rest of 2022 to deal with and it’s no surprise that the company said “the impacts of the health context are still difficult to assess”.
It gave no specific figures but nonetheless struck an upbeat tone. The company said that its “highly integrated craftsmanship model and balanced distribution network, as well as the creativity of our collections and our customers' loyalty allow us to look to the future with confidence”.
In the medium term, “despite the economic, geopolitical and monetary uncertainties around the world, the group confirms an ambitious goal for revenue growth at constant exchange rates”.
ASOS joined a host of major international retailers that have suspended retailing in Russia since the invasion began in late February.
While few have quantified how much of a hit the withdrawal will cost them in terms of profits and growth, ASOS has admitted it will cost the business £14 million this year and mean a 2% reduction in growth.
It joins Mothercare in revealing how big a hit it will see to its bottom line. Last month, the mother and baby goods retailer said Russian business represented around 20%-25% of its worldwide retail sales. And it was previously expected to contribute around £0.5 million every month to group profit.
Away from the Russia-Ukraine crisis, ASOS has also admitted it’s having to absorb costs as price rises begin the bite. This week, the company issued a note of caution in its outlook for the rest of the year, as shoppers are expected to cut back on spending amid rising inflation and the accelerating cost of living.
Chief operating officer Mat Dunn said the company had “chosen to absorb a significant amount [costs shock] in the short term,” after experiencing increased costs throughout its supply chain.
“We have seen it in warehouse wages and the other area we have seen it reflected is in freight costs. They represent the vast majority of our inflationary pressures. We believe that ultimately some of those freight costs will unwind and so we have chosen to absorb them rather than pass them on to consumers.”
However, he said the company had increased the price of some products by “low to mid-single digits” at the start of 2022.
Dunn also said he believed retail was going through “a period of realignment”, but that online shopping continued to account for a higher proportion of consumer spending than it did before the pandemic.
When it made several unsolicited offers to buy a Ted Baker, private equity group Sycamore Partners may have hoped to pick up the UK fashion business on the cheap. But it's now likely to have to pay much more than it hoped as it continues to take part in the bidding process.
Ted Baker said in a stock exchange statement on Wednesday that Sycamore has indicated it’s still interested in being part of the formal sale process, despite speculation that it might drop out now that the company has officially put itself up for sale and the price is therefore likely to rise.
The statement said: “Further to the announcement made on 4 April 2022, Ted Baker PLC confirms that Sycamore Partners Management LP will participate in the formal sale process. As such, Sycamore is no longer required [under stock exchange rules] to announce, by no later than 5.00 pm on 15 April 2022, either a firm intention to make an offer for Ted Baker or that it does not intend to make an offer.”
Ted Baker remains in turnaround mode having been working hard to recover from a series of problems both caused by the pandemic and by missteps of its own. But the company seems to be on the right track.
Despite its share price plummeting from the highs of 2015 when each share traded at almost £28, it clearly retains some appeal for private equity groups looking to profit from its recovery.
A few weeks ago, Ted Baker said it had rejected two successive unsolicited offers from Sycamore as they undervalued the business. But it also received an “improved proposal” from the group, as well as “other unsolicited third-party bid interest”.
It didn't disclose what the third offer from Sycamore added up to, but earlier reports said the group had initially offered £1.30 per share offer, valuing the business at £250 million.
The company's share price has struggled in recent years and was hit hard by the pandemic, falling as low as a little over 70p during 2020. However, the share price had recovered somewhat, but was still only at 80p in February. It subsequently began climbing and the Sycamore news sent it higher still. The shares were trading at around £1.50 each on Wednesday morning, valuing the entire business at almost £272 million.
It's still not known who else is interested in buying the company and whether any other retailers might be prepared to throw their hats into the ring.
Staffordshire-based ecommerce platform Moot has raised $18m (£13.8m), led by Espresso Capital, for its online sales unification service.
Moot’s platform allows companies to manage sales across different channels in a single place. It was founded in 2019 by ecommerce brand owners who had struggled to scale with the limited technology services provided by the likes of Shopify.
The company provides clients with a centralised database so that retailers can clearly monitor the activity of sales across all of the fragmented ecommerce landscape.
The startup will be putting the new funds towards expanding its AI tech for greater automation in activity analysis.
Moot’s digital tools were originally designed by company founder Nick Moutter exclusively for his own online store, Olivia.
“When starting that business, we needed a whole host of technology and tools. We decided to build most of what we needed from scratch, rather than licensing it,” Moutter said.
When other online sellers started approaching Moutter to use his company’s custom-made tools, he officially founded Moot.
“We realised there was a huge demand in industry,” said Moutter, particularly among companies in “the second stage of growth, where they are hitting the ceiling of Shopify, and looking for more advanced solutions to scale”.
Espresso Capital MD, Will Hutchins, said that Moot’s “unique platform combining operational capabilities, advanced user experience, and customer acquisition technology is attracting a growing list of tier-1 global clients”.
“The rapid growth in ecommerce presents a terrific opportunity for Moot and we believe the company has the right team and technology platform to become a global EaaS leader.”
Moot’s growth has been rapid since its formation, with annual recurring revenue expected to hit £100m this year after bringing on major retail clients like Asos and Timberland.
The company previously raised £5m in seed funding in July of last year, in a round led by Fuel Ventures.
ASOS on Tuesday said it’s still seeing rising sales, while it made a profit in line with guidance. But the figures were muted and it warned that the external environment is riskier than usual at present.
It delivered 4% revenue growth (on a constant currency — or CCY — basis) and £14.8 million of adjusted pre-tax profit in the six months to the end of February, “despite industry-wide supply chain constraints impacting stock availability and ongoing Covid-19 restrictions”. Some analysts had expected revenue growth to be even lower.
The company said it saw strong operational progress in the year to date, with its H2 stock position “materially enhanced, driving increased newness and availability”.
And apart from the removal of Russia's contribution to the second half, its guidance is unchanged, “although an increasingly challenging external environment introduces a greater degree of risk than normal”. Russia usually accounts for around 4% of sales.
Group revenues rose to £2.004 billion (the first time they topped £2 billion). That may have been a 4% CCY rise, but it was only 1% in total.
The gross margin was down to 43.1% from 45% and the operating loss was £4.4 million after an operating profit of £109.7 million a year ago. Adjusted EBIT was £26.2 million, down 77% on the year, and the reported pre-tax loss was £15.8 million (down 115%). Although it made an adjusted pre-tax profit, as mentioned, that £14.8 million was 87% lower than a year ago.
But it saw a continued increase in active customers to 26.7 million, up 0.3 million.
Yet even with reduced stock availability, both the UK and US “delivered a strong performance”. However, EU sales growth was weaker and rest-of-world (ROW) sales fell on delivery challenges. That was a similar ROW story to that recently reported at rival Boohoo Group.
UK total sales grew “a pleasing” 8% to £895.5 million on recovering demand for going-out wear.
Europe rose only 1% CCY to £577.4 million, due to supply chain constraints, along with continued Covid restrictions. Germany performed well on increased demand for going-out wear, however this was offset by a weaker trading period in France where customers flocked back to physical stores.
The US saw revenue growth of 11% CCY to £252.7 million even with supply chain issues. A strong promotion programme and underlying demand meant its highest ever peak sales month in the US in November. February also saw strong customer engagement.
It expanded its wholesale business in the US further too. The debut of select ASOS brands in two Nordstrom stores and on Nordstrom.com in November was followed by further extensions to two new retail concepts in-store in February.
ROW total sales declined 10% CCY as low stock availability impacted all markets, and delivery lead times remained a constraint, particularly in Australia and Israel.
But on the plus side, the firm saw continued triple-digit sales growth of its Topshop brands (+193% year-on-year), and they were “particularly strong” across the UK, US and Germany.
ASOS said it enters the second half with a “much-improved stock position driving increased newness and availability”.
And it has plenty of growth initiatives too. The successful UK rollout of Partner Fulfils in H1 will be followed by range extension and expansion to Europe by the end of FY22.
It highlighted the “highly successful optimisation of the Premier offer, supporting 24% growth in Premier subscribers”. It has also seen “continued improvements in data science to further personalise the experience”, and the next phase of data evolution and investments are under way in support of the Data Strategy.
As mentioned earlier, it sees some challenges ahead. It won’t be getting any sales from Russia for the foreseeable future and it said it sees “greater risk in H2 than normal as the full impact of recent inflationary pressure on consumers and the potential impact on discretionary spend are yet to be felt”.
But it still expects sales growth to accelerate during the current half.
Stella McCartney is continuing her Disney collabs and has just unveiled a new collection linked to 82-year-old movie Fantasia. It’s described as “an unexpected collaboration playfully blending fashion and fantasy, embodied in a unisex capsule of irreverent pieces – reflecting a desire to escape reality, transporting a new generation to an illusory world inspired by the classic Disney animated film”.
In practice that means taking the film’s imagery and turning it into wearable summer pieces with a heavy focus on sustainable materials.
For now it’s an adults-only collection, but a kids’ capsule will also be launched this autumn.
Aligned with the designer’s love of nature, the summer offer is priced from £50 up to £2,500 and includes “elevated fashion pieces” that reference Fantasia’s “transcendental beauty and iconic characters”, including Mickey Mouse hand motifs and rare posters from the 1940s. And they’re on limited-edition repurposed old-stock silks from LVMH’s Nona Source.
There’s also knitwear featuring Mickey and broomstick-man graphics, linking to the film’s most famous segment, The Sorcerer's Apprentice, alongside satyr scenery from The Pastoral Symphony.
Reinterpreting the film’s night skies and Summer 2022’s glitter, advanced bodycon knits also come with PVC-free sequins.
Add in organic cotton towelling on fringed kaftans with washed-out centaurette prints, and original warped and remixed Disney graphics on dresses giving the effect of patched-together vintage tees. Then there’s organic cotton denim that taps vintage aesthetics – including eco bleach effect light blue washes and an apricot galaxy wash on utility shirts, boyfriend jeans and a hoodie jacket, with a new Stella logo and Mickey prints on the back.
The collection also takes in accessories with bucket hats, pool slides, sneakers, safari caps, and an extensive bag selection.
There’s a black velvet hard-body shoulder bag shaped like Mickey’s head silhouette, given “a Stella edge” by a mixed-galvanic Frayme chain detail and an Alter Mat vegan leather strap. Falabella mini and shoulder bags also feature Mickey as rainbow patches and crystal embellishments, while Logo totes highlight a new allover black Mickey drawing print.
March UK consumer spending held up well, a new report said on Friday, and fashion “soared” above other sectors as consumers renewed their wardrobes for the spring season.
That’s according to BDO’s High Street Sales Tracker (HSST), which said that March saw the 13th consecutive month of retail sales growth, a new record. Year-on-year total like-for-like sales (that’s in-store and online) were up 60.9%, although the fact that the UK was in full lockdown a year earlier would have had a big impact in 2021.
The change over the course of last year can be seen very clearly from the fact that non-store like-for-like sales fell via 10.8%, the third month of decline in this area. In March 2021 by contrast non-store sales were up over 157%.
So what about fashion specifically? Total like-for-like sales rose 87% for the month, from a base of +57.5% for the same time last year. Fashion was also the only category to record positive non-store results in March.
Combined with other information – such as Kurt Geiger saying that the multi-year trend away from high heels has gone into reverse in recent periods and several retailers highlighting increased searches for swimwear – the fashion figures in March suggests that consumers really are embracing the opportunities now available to them.
Special events such as weddings and other dressy occasions are happening in large numbers and consumers also seem to have overcome their nervousness about contact with others and are socialising more actively again. Holidays are also back on the agenda. It's all helping fashion sales, as is the acceleration of the return to workplaces.
While both fashion and lifestyle categories saw substantial sales, homewares saw its first fall since April 2020.
On a weekly basis, cross-category sales in the first week of the month saw growth of 48.31% from a base of +4.53% for the same week the previous year. And the second and third weeks of the month saw increases of 60.87% and 94.31% respectively. In the final week of March, the rise was 76.13%.
Sophie Michael, Head of Retail and Wholesale at BDO, said: “Our results in March have highlighted that consumer spending remains high despite impending increases to the cost-of-living this month. However, there are also concerning signs that some of this spending is being supported by record levels of household borrowing, which has increased lately even as consumer confidence plummets. There may be good reason to expect some pull-back in discretionary spending over coming months, though the impact will inevitably vary across different areas of retail.
“Rising energy, operational and supply costs also pose a serious challenge for retailers, many of whom may look into raising prices and/or re-examining their supply chains, as they seek to mitigate these issues and make cutbacks where possible. While the cost-of-living crisis was largely still on the horizon in March, retailers have been planning ahead and have made allowances for higher levels of inflation. However, the forecasts only appear to be increasing so the question is whether costs will rise faster than initially anticipated and cause further disruption.
“This myriad of issues will no doubt require retailers to reconsider their plans as the consumer purse comes under increasing pressure.”