Private equity owner looks at possible Maplin sell-off

Montague Private Equity said yesterday it has appointed accountancy firm KPMG to consider options for the fast-growing company, which has 176 stores and more than 2,000 employees.

Montague, which paid 244m for the company in 2004, would not comment on reports that the business could now be worth 400m.

The review is expected to look at what kind of sum Maplin might raise at present and in the future if present growth rates continue.

It is understood that Montague received a number of informal approaches for the business before deciding to appoint KPMG.

"It's a very good story. It's about growth and being quite resilient during a recession," said a City source. "But they are not under pressure to do anything."

In 2009, turnover was 203.6m, marginally up on the previous year, but operating profit was 35.1m, up 11 per cent on the previous 12 months. Directors said: "The business continued to focus on delivering better customer solutions and driving operational efficiencies via strong cost control.

"The result of this focus and the continued strategy to expand the store network has been to increase operating profit."

Maplin opened 17 new stores in 2008, 12 in 2009 and is set to open at least 10 this year.

The company had 35m cash in the bank at the year ending December 26, 2009.

Keith Pacey, chief executive of Maplin, told the Yorkshire Post: "It's a pretty tough environment for discretionary spend.

"I'm pleased with the way the team has run the business in the recession, managing to keep sales and profits growing every year."

He added: "We have paid down a lot of our debt. The business generates a lot of cash and is not at all highly geared."

Founded in 1972, Maplin sells more than 15,000 products, including MP3 players, satellite navigation systems for cars, digital cameras and wi-fi connectors.

Any sale is unlikely to take place before the new year.