Travel group puts brakes on float plan

British coach and holidays operator Shearings put the brakes on its planned £50m (€75.9m) flotation today as jitters continued to grip the London market.

The Wigan-based group, which employs more than 2,000 staff in the UK, said institutions were “extremely cautious” about new share issues.

It comes just a week after British fuel cells maker Intelligent Energy pulled its own float and will heighten concerns about the climate for other companies.

Shearings, which has 226 coaches and 36 hotels, had hoped to raise £25m (€37.9m) in new equity by floating on the Alternative Investment Market. It also pulled plans to sell the business in 2001, following the September 11 attacks.

Chief executive John Slatcher said that, in keeping with the experience of other firms, the group had been unable to achieve the value acceptable to shareholders.

While this was disappointing, he said Shearings had a strong market position and “exciting prospects”.

“Flotation is not an essential move from a business perspective,” he added.

Bridgepoint Capital has been a majority shareholder in Shearings since 1996, when it backed a management buyout from leisure group Rank.

Shearings began as a coach company but has expanded to include hotel breaks, flights, cruises and rail.

It carries more than 500,000 holidaymakers every year to destinations in the UK, Europe, Canada, America, Australia and New Zealand.

It uses charter flights, low-cost and scheduled airlines in its trips to worldwide destinations.