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Forecourt operator EG Group is readying a $13bn stock market flotation in the US for later this year.
The IPO will provide private equity backer TDR Capital, which has backed the billionaire Issa brothers for more than a decade, with a return on its investment.
Zuber Issa, who founded EG Group from one site in Blackburn in 2001, told The Sunday Times in an interview that the group would likely float in New York under the name of Cumberland Farms, which is the US convenience store operator that it bought in 2019.
Issa said “the roadmap is starting now” on an initial public offering.
He added that the US made more sense for a float than the UK as EG generated about 60% of its earnings there.
“If we still had [the majority of] our assets in the UK, we would have had a much closer look at a UK IPO,” he told the paper.
TDR and the Issas now own about 50% each of EG.
Morning update
E-commerce discounter Huddled Group has boosted annual revenues to more than £14m after posting record sales in the fourth quarter of 2024.
It is a 50% increase on the previous quarter, with the majority of revenues generated at the Discount Dragon business.
Discount Dragon also delivered a modest adjusted EBITDA profit for the first time in the month of October 2024.
Huddled CEO Martin Higginson said: “2024 was an incredible year. We more than doubled the revenue of Discount Dragon, acquired two new brands in Nutricircle and Boop Beauty, processed over 346,000 orders, and welcomed over 100,000 new customers.
“As we move into 2025, we will start to see the benefits of our additional warehouse space and efficiencies.”
Grocery software-as-a-service (SaaS) provider Eagle Eye has lowered its revenue forecasts for the next two financial years on the back of a significant reduction in the professional services side of the group.
It still expects double-digit growth at the core SaaS operation, but the macroeconomic climate caused lengthening sales cycles, the group said in an update.
Group revenues in the six months to 31 December nudged up 0.4% to £24.2m, with SaaS sales up 10.4% to £19.5m, but professional services and SMS revenues fell 16.4% and 77.5% respectively.
Adjusted EBITDA at Eagle Eye, which works with the likes of Tesco, Asda, Morrisons and Waitrose, remained flat at approximately £5.9m.
“We are more confident than ever that we have the right building blocks: industry-leading software; a growing blue chip customer base; and now major global partners to build Eagle Eye into a world-leading SaaS business,” added CEO Tim Mason.
This week in the City
With the main thrust of the supermarket Christmas trading updates out of the way, it’s looking a little quieter in the City this week. But there is still plenty of scheduled news.
Ocado is the final listed grocer to update the market on its ‘golden quarter’ figures tomorrow. After the strong showing from online partner M&S last week, it’s a safe bet that Q4 figures for Ocado Retail will be similarly impressive.
Wednesday brings the latest UK inflation figures from the Office for National Statistics.
Thursday is a busy day again this week, with Deliveroo (Q4), Bakkavor (FY) and Poundland owner Pepco (Q1) all reporting.
To finish the week, we get the ONS retail sales figures for December.
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