Travel Counsellors is reportedly weighing up a stock market float as an option for its next stage of growth.
A London listing is one of a few ideas considered as part of plans it is putting together to decide how to develop the business over the next few years.
The private equity firm Equistone took a 60% stake in the business for £100 million in 2014 at a time when pre-tax profits were £7.3 million and total transaction values were £307 million.
But new accounts show total transaction values have surpassed the £500 million mark while pre-tax profits hit £13.3 million for 2016.
Chief executive Steve Byrne told the Daily Telegraph that the company was “looking at our options” regarding the next stage of growth, which could involve strategies including engaging another private equity fund to invest in the business or to list on the stockmarket.
“An IPO is a consideration,” he said.
The company could double its level of profits in the next three to five years by recruiting more agents, targeting cash-rich and time-poor customers and selling more holidays it has created itself, which it earns more money compared to selling third-party package deals.
Byrne added that the company was keen on expanding its overseas presence beyond the UK by two or three countries in the next 18 months.
It currently has agents in Ireland, the Netherlands, Belgium, Australia, South Africa and Dubai outside the main UK market.
The original owners of Travel Counsellors, who still own a “minimal share” in the business according to Byrne, started the company more than 20 years ago.
Dominic, son of founder David Speakman, sold his majority stake in online luxury travel company Destinology in 2014 to Saga for £20 million.
See also:
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