“We decided to go for PLUS over AIM,” explains Hardoon. “It’s an intermediate stepping stone, and we don’t want to run before we can walk.”
FD and soon-to-be-MD Hardoon preferred the informality of the smaller stock exchange (once OFEX), for the London-based bagel manufacturer. “We’ve had the interviews with the PLUS people and they’re comfortable."
“Our reasons for listing are as follows,” he continues. “We want to grow and access funds. But as most of our customers are big supermarket chains it also helps put us in a stronger position when it comes to negotiating deals and payments. Buyers can be a bit… capricious. The plc tag will raise our credibility.”
As for the due diligence process, Hardoon is relaxed, “It’s been a cinch so far. We expect to see shares traded within the next two to three weeks.” Asked about the cost of the flotation, Hardoon skirts the figures, but insists that his £7m-turnover firm has made savings to the tune of "hundreds of thousands" by choosing PLUS.
"We didn’t want to add a further financial burden to the business when it’s in the process of expanding," he says.
Nevertheless, this is only a short term decision. The PLUS listing is a dry run before attempting the lengthy process of listing on AIM. “This is a great way to increase the visibility of our brand, not just with housewives but in the financial world,” he explains. “This will give us far better standing when we list on AIM in eighteen months. Far more so than had we gone in cold.”
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