Boohoo laughing all way to bank as firm valued at £560m

Boohoo is a fashion website
Boohoo is a fashion website
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Fashion website has been valued at £560m after a City fund-raising delivered a big windfall for its founding family.

The Manchester-based business, which targets 16 to 24-year-olds, has secured £300m from investors in a share placing secured ahead of a listing on the London stock market next Friday.

Members of the founding Kamani family and other shareholders have received £240m of the proceeds, while some of the remainder will be used to implement a £6.5m improvement plan for its Burnley warehouse.

The Kamani family and other board members will still hold 44 per cent of the company following the placing of 600 million shares.

Boohoo is one of a number of companies making their debut on the London Stock Exchange, with others due to float in the next few days including Pets at Home and Poundland.

A number of companies are considering making their stock market debut, as economic conditions improve.

Founded in 2006 by joint chief executives Mahmud Kamani and Carol Kane, boohoo now has 2.3 million active customers. Sales rose 70 per cent to £91.9m in the 10 months to December 31, while underlying earnings were up 188 per cent to £10.1m.

Ms Kane, who started her career as a designer then fashion buyer, has worked with Mr Kamani for the past 20 years supplying high street retailers.

She said: “We are confident that our competitive position and growing customer base means that we are well placed to capitalise on the fast growing online fashion retail market.”

Boohoo has boosted its boardroom with the appointment of four new non-executive directors including Peter Williams, who was formerly the senior independent director at rival internet fashion firm ASOS.