The UK’s largest seller and distributor of iconic luxury watch brand Rolex are currently working on plans to float on the stock market and open up the company for new investors.
Float Value
Watches of Switzerland, a luxury retail group specialising in highly priced but expertly made watches, are seeking advice and actively working towards selling a large number of shares to high ranking investors.
Initial projections expect the company to be valued at approximately £800m.
Currently, the company is looking to raise their revenue streams significantly, and believe that this decision to float on the stock market will increase their chances of achieving high profit levels by the end of the year.
Debt Pile
The company, which owns Goldsmiths and Mappin & Webb as subsidiaries, is currently facing £260m worth of debt and hopes that raising cash through share sales will diminish the amount due to the company’s debtors.
Investors are already showing interest in these initial reports: Watches of Switzerland has seen a steady growth of around 18% since 2014 and control a market share of about 35%, making them the biggest player in an increasingly diversified market.
The company are also demonstrating positive profits, with £68m being reported in underlying profit on sales that totalled approximately £746m in 2018.
Booming Market
Luxury watches are a booming market with UK consumers, the company’s CEO points out, with the standard timepiece priced at around £3,800 and appealing to multiple demographics with an appreciation for high-quality design.
The market of luxury watches is also in a unique position where demand often outweighs supply and so prices can be pushed further up to deliver for those customers willing to pay.
