Umbro cuts flotation price

Sports kit supplier Umbro today said tough markets had led it to slash its flotation price by a third.

The UK-based company hoped to gain a value of more than £200m (€163m) from listing on the London Stock Exchange, but this was scaled back today to £144.5m (€118m).

Conditional dealings began this morning at 100p – less than the 150p to 190p price range previously indicated by Umbro and its advisors.

Demand from investors nudged the share price higher to 109.5p ahead of full unconditional trading to begin next Thursday.

Chief executive Peter McGuigan said: “We are delighted that we have been able to proceed with Umbro’s flotation despite weak equity market conditions.”

Doughty Hanson – the venture capital firm that owns 83% of Umbro – is to retain a 57.4% stake.

Umbro is looking to build on the revival in its brand following the arrival of a new management team five years ago.

Targets for the group include developing a presence in the branded footwear market, as well as growing the business in the United States.

Umbro currently supplies playing and training kit to the England football team, while it is also associated with 150 leading professional clubs worldwide, including Chelsea and Olympique Lyonnais of France.

The firm, based in Cheadle, was founded in 1924 and has been associated with football since the 1930s. It employs around 190 people in the UK but sources products from recognised manufacturers in the Far East.

The UK represents the company’s biggest single market, with a 33% share of the replica kit market.

It expects a further boost to trade from this summer’s European Championships in Portugal.