Dyno-Rod flotation held up

Investors planning to buy drain clearance-to-pest control firm Dyno-Rod have postponed a stock market flotation of the business, it emerged today.

The investors, who are buying Dyno-Rod from founder Jim Zockoll, delayed today’s proposed Alternative Investment Market (AIM) listing after failing to reach a deal with Mr Zockoll over his reported £60m (€89.6m) asking price for the firm.

They had planned to raise £47.5m (€71m) towards the purchase through the public offering.

Stockbroker Seymour Pierce, which is managing the deal for the investors, said they were still talking to Mr Zockoll “with a view to getting a deal done in the next couple of days”.

Seymour Pierce director Jonathan Wright said: “We’re a short way away from each other on price, but it can still happen.”

Mr Zockoll, 74, last month revealed that he planned to retire and to sell Dyno-Rod, reportedly to management buy-in vehicle Dyno, led by chief executive Kevin Mahoney.

The former pilot, who owns 85% of the company, would retain a stake of around 10% in the new business under the flotation.

He has seen the business grow from a single operation to a nationwide company since founding it as a plumbing firm in Wimbledon in 1963, during his spare time while working as a pilot for Pan Am.

The Surbiton, south London-based company expanded and is now a 167-strong franchise operation offering services ranging from emergency plumbing and locksmith services to pest control.

As well as domestic customers, it provides services to a range of corporate clients, including British Gas and housebuilders Barratt and Taylor Woodrow.

The company employs 180 staff across Dyno-Rod, Dyno Locks, Dyno Plumbing, Dyno Kil and its 24-hour emergency call centre.

Other original stakeholders set to benefit from the sale include Mr Zockoll’s former colleagues from Pan Am.