More signs of life in the IPO market
Could The Beauty Tech Group be following Applied Nutrition - after all, it's gone very well so far...
Hello Rainmakers,
Are there signs of more life on the new IPO market.
Following the success of Applied Nutrition which has had a storming debut since its October float, it looks like the market is opening up for fast growing “on trend” consumer facing businesses.
This is your free Friday taster email for all the curious free subscribers out there who don’t quite know what they’re missing.
But also a pick of the crop from different deals being done around the country, selected by our team of journalists from TheBusinessDesk.com.
Rainmakers is a reader-supported publication. Subscribers get two unique pieces a week and full access to our back catalogue of investigations, scoops, and insights. These include updates from columnist The Secret Investor and interviews with entrepreneurs (like this one), as well as leaders from VC and PE investors like Mercia and LDC.
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A beauty technology group based in Manchester is pondering a stock market float this year.
Following the success of Applied Nutrition which has had a storming debut since its October float, it looks like the market is opening up for fast growing “on trend” consumer facing businesses.
The brands owned by the fast growing The Beauty Tech Group include CurrentBody, which is used by celebrities such as Kim Kardashian and Serena Williams.
To be fair, Sky News first reported that co-founder and chief executive Laurence Newman had appointed investment bankers at Berenberg to look at an initial public offering (IPO).
University of Manchester graduate and former medical clinic owner Newman founded the business with its chief technology officer Andrew Showman and finance director Sam Glynn.
Its shareholders include notable North West entrepreneurs Simon Cooper, founder of On the Beach, and Mike McGrath, former corporate lawyer who was a director at Speedy Hire.
Its products include home-use beauty technology, such as LED, radio frequency, microcurrent and laser treatments.
According to accounts filed in January 2025 for the financial year to the end of December 2023, The Beauty Tech Group posted pre-tax profits of £6m on turnover of £59.5m.
However, the business has grown since and in a statement, Newman said: “2024 was another significant year financially and strategically for the Group.
“We delivered revenue of over £100m and successfully acquired Tria Laser while also completing the integration of ZIIP Beauty.
“These acquisitions have diversified and increased the Group’s product offering across the rapidly growing beauty tech market and, in line with our strategic ambitions, the Group is now focused exclusively on own-brand products.
“I am pleased that the Group’s strong performance through 2024 has continued into January and I am confident that 2025 will be another record year.
“As increasing international demand and the Group’s operational infrastructure provide foundations for the next stage of its global growth, the Group is considering its strategic options, which includes a London IPO later this year.”
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Does every sector have a growing “tech” element to it that threatens to disrupt the world?
Fintech, medtech, sportech, beautytech (see above) and now martech. That’s marketing technology, the use of analytics and data in pursuit of smarter and more effective marketing.
Thursday’s Rainmakers post was all about how one growing Nottingham-based agency business is a real live case study for this growing trend.
Click the button to subscribe and see the rest of Sam Metcalf’s excellent insight into Martec.
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As part of its 100th-anniversary celebrations, Duncan & Toplis is adding up its successes with the acquisition of London-based accountants ALG.
The ALG team, including directors Mark Hilton and Panos Michaelides, will keep their calculators handy, joining Duncan & Toplis at its Finchley office—just months after the firm’s acquisition of Haines Watts North London.
CEO Damon Brain called the deal an "exciting step" in the company’s growth strategy, while ALG’s partners see it as a golden opportunity for both clients and staff.
With full regulatory approval in the bag, Duncan & Toplis isn't stopping there and has said they are “continuing active acquisition discussions with other like-minded businesses.”
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Data, data everywhere.
On Tuesday we enjoyed a deep dive with MHA’s head of corporate finance Andy Feeke into trends and forecasts.
Here’s a snapshot of what he said: “With the world facing significant change and volatility, the outlook for 2025 M&A activity presents both reasons for optimism and caution. While the ‘Trump bounce’ in the US is likely to have a positive knock-on effect in the UK, domestic challenges such as stagnant growth and ongoing geopolitical conflicts across Europe and Middle East could temper expectations.
“Additionally, emerging markets are expected to play a more prominent role in any increase in M&A volumes, particularly in renewable energy, digital infrastructure, and fintech, as businesses seek to diversify geographically and mitigate supply chain vulnerabilities. The evolving geopolitical landscape, including China’s economic policies and global trade tensions, will also be pivotal in shaping M&A opportunities,” he says.
So while transaction volumes in the past 12 months remained below the buoyant levels of recent years, there are signs of cautious optimism in many parts of the world. This reflects confidence in economic growth in certain markets, heightened corporate appetite for strategic growth, and robust capital reserves of both corporate and Private Equity (PE) buyers.
There’s much more, click the button to subscribe and see the rest of Andy’s insights.
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Total private equity investment in the North West increased significantly in 2024, according to the latest UK Private Equity Review from KPMG UK.
The annual study into private equity activity found that investment in the region grew by two-fifths (41%) in 2024, totalling £20bn.
The findings reflect a period in which the UK experienced a more stable economic climate, with interest rates and inflation falling, greater political certainty following elections, and a surge in transactions ahead of anticipated changes to Capital Gains Tax.
The volume of deals in the region increased from 165 to 203 year-on-year as volumes returned to 2022 levels. Encouragingly, the overall level of investment increased by 71% compared with 2022.
Investment in the North West accounted for more than a 10th (12.5%) of all new PE backing in the UK, and was the most active region outside London, which continued to deliver the greatest interest from PE funds, attracting £78.1bn of investment.
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In terms of ambition, you can't fault Keystone Brewing Group, which says it is on a mission to forge a £100m drinks portfolio. And for the latest phase of this strategic plan the group has acquired Leeds-based North Brewing Co from Vertical Drinks Ltd, in a move which safeguards all jobs at the Springwell brewery.
The deal sees North Brewing Co join an impressive and ever expanding stable of beer and cider brands at Keystone, which now also includes Black Sheep, Purity, Brick, Brew by Numbers, Big Drop, Wolf Pack, Maison SASSY Cider, Magic Rock and Fourpure.
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Zelus, Nike’s exclusive authorised licensee for team sports, has received investment from private equity investor Sullivan Street Partners.
Wilmslow based Zelus specialises in the design, development, manufacturing and e-commerce fulfilment of customised sports apparel and equipment for professional and grassroots teams globally.
The amount paid hasn't been disclosed, but last year Zelus made statutory losses on soaring turnover of £49m, a 157% increase, but also recorded positive EBITDA for the first time since the business was founded as a spin off from Dewhurst Clothing in 2019.
Layton Tamberlin, Co-Founder and Managing Partner of Sullivan Street said the investment will “accelerate and support Zelus’ ambitious growth plans” to strengthen Zelus’ position in the sports apparel market.
He added: “Together with Zelus’ management team, we look forward to equipping more teams and athletes with top quality products, from local pitches through to professional stadiums.”
The Rickitt Mitchell team including Neil Mitchell and James Kidner advised the shareholders of Zelus on securing the new investment from Sullivan Street.
Neil Mitchell, partner, told TheBusinessDesk.com: “Sullivan Street will be a great fit for Dave Seales and the team at Zelus, and there appears to be a real growth story in the sport sector right now.”
Lawyers from Addleshaw Goddard advised Zelus Sport, led by Roger Hart and included Ben Davies, Dan Rathbone, Lucy Harnett, Rose McEwan and George Danczak.
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RAINMAKERS CONFERENCE IS BACK IN 2025
Our speakers have been revealed for the 2025 Rainmakers conference. They include those featured below, and many, many more.
twisted loop are excited to come on board as our headline partner. They join partners BGF, Dow Schofield Watts, KPMG, NorthEdge, Palatine, Shawbrook, Squire Patton Boggs & TDC.
Twisted Loop said: “This event is a testament to the strength and ambition of the North West’s business and investment community, bringing together an incredible range of talent, insight, and expertise.
A powerful line up of speakers including high-calibre private equity backed entrepreneurs such as Ruth Percival, Helen Oldham and Thomas Ryder, the founder of Applied Nutrition and the chief executive of the biggest UK stock market float of 2024.
Hot topics on the packed agenda include how to create success in tech, the art of building value in a growing business, and making the case for private equity and corporate finance professionals on the political stage.
Newsworthy speakers will also include Shru Morris, anointed successor DSW, and Dave Richards, founder of IntelliAM, who has a tale to tell about his experiences with tech business WANdisco, and founder of Palatine private equity Gary Tipper.
Also appearing to set the political backdrop to the eventful year just gone will be Karim Palant, head of external affairs at the BVCA, and Greater Manchester Mayor Andy Burnham.
So save the date for Rainmakers 2025 – Wednesday 26 March, 2025 – and secure your place today at The Point, Emirates Old Trafford, Manchester.
It will bring more opportunities to network, more amazing speakers, more candid debate, more inspiring entrepreneurs, but also a chance to discuss the challenges of value creation.
The first Rainmakers Conference this March sold out, with more than 400 people attending to hear the insights and perspectives from entrepreneurs, investors and advisors, and to network with senior figures from across the corporate finance community.
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