It is important to build up the business before the IPO, says chairman
Broking group Hyperion is planning to bulk up ahead of its planned flotation in mid-2012 with further organic growth and two acquisitions, according to chairman John van Kuffeler.
Hyperion’s revenue increased 26% to £72.2m in the year ended 30 September 2010, from £57.2m in 2009. The upturn reflected both organic growth and last year’s acquisition of German directors’ and officers’ specialist Hendricks & Co. Excluding acquisitions, revenue growth was 17%, van Kuffeler said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 41% to £12m from £8.5m, while profit before tax rose to £6.9m from £3.8m.
“We have a clear aim that this year we will see further significant growth coming through both in revenue and EBITDA, along the lines we saw in the year we are currently reporting on,” van Kuffeler said.
He added that there would be further growth in 2012 in the run-up to the initial public offering (IPO).
As well as the Hendricks acquisition, Hyperion has also signed a recent agreement to buy Singapore-based broker Accette.
“It is likely that prior to the IPO we will make one or more further acquisitions,” van Kuffeler said.
“It is not a requirement, but we will probably do them before we get to the IPO in mid-2012.”
Van Kuffeler said he believed Hyperion has the governance and internal structures in place to float now, but that it is important to build up the business before the IPO.
“If we become a larger company than we are now – which we will by mid-2012 – we will get a bit more stock market attention,” said van Kuffeler.
“It is important to have five or six analysts rather than just one or two, and to have a proper liquid stock and a full listing.”