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.
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.
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.
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. A fairly untapped market, this move from Watches of Switzerland could open the highly controlled industry to investors looking for a potentially more secure, long-term investment.
With Watches of Switzerland still managing to lead the market after years of uncertainty in luxury brands, investors should keep an eye on this company’s advancement to the stock market.
Money is to be made in this company, especially if investors are willing to stick things out through a bumpy initial landing on the stock market.