Aldermore confirms plans to IPO (again)

 
Emma Haslett
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The bank increased its loan book by 42 per cent in 2014 (Source: Aldermore)

Challenger bank Aldermore has dusted off its IPO plans, which it scrapped in October, confirming its intention to float on the London Stock Exchange.

The bank, which specialises in lending to small businesses, is thought to be gearing up to raise £75m through the flotation, representing approximately 40 per cent of the issued share capital of the company.

In a statement this morning, the bank said it had grown from 50 employees, with £76m of lending to "a multi-product asset-based lender" with £5.6bn of assets, 160,000 customers and 875 employees.

Having announced its intention to float in September, Aldermore scrapped its plans in October, as investors shied away from volatile markets. Aldermore wasn't the only casualty: fellow challenger bank Virgin Money also cancelled plans to IPO, as did webuyanycar.com owner BCA.

But in November, Virgin Money pressed ahead with its plans, raising £500m and valuing the business at £1.25bn.

Last week Aldermore published figures showing it had more than doubled underlying profit before tax to £56m in 2014, with return on equity increasing 15 per cent and net loans rising 42 per cent to £4.8bn.

This morning, chief executive Philip Monks said now is the right time for the business to pursue a listing.

We have consistently delivered on our ambitious targets and we have proven our ability to grow organically and profitably. In 2014, underlying profit before tax more than doubled, driven by strong balance sheet growth, with net lending to small businesses and homeowners higher than ever before.

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