Booming New Look won’t revive IPO plans

New Look today proved fast fashion is still in vogue with shoppers, but said it has no immediate plans for a second attempt at a stock-market flotation.

The cheap clothing chain, which is owned by private-equity firms Permira and Apax, postponed plans for an initial public offering in February after conditions in the market deteriorated.

Chief executive Carl McPhail said today that the decision had cost the company £10 million.

UK like-for-like sales rose 5% in the year to 27 March, as New Look clawed customers away from rivals. McPhail said sales in its London stores, including its Oxford Street flagship which opened in February, have been particularly strong.

But he remained cautious about future trading and warned that an expected increase in VAT would be a "nightmare" for retailers.

"We would prefer it to be put off until January," he said. "It will be a nightmare logistically and [cause] frustration for consumers."

He added that part of the tax rise, which is almost certain to be announced later this month, is expected to be passed on to customers.

Despite tough trading in Ireland and France, New Look's underlying profits rose 17.7% to £163 million, on the back of total sales up 10.7% at £1.46 billion.