Huel eyes London IPO as appetite for plant-based meal replacements grows

The plant-based meal alternative maker Huel has employed bankers to advise on an preliminary public providing in London after a surge in recognition for its merchandise within the pandemic health growth.The Hertfordshire-based group is working with Goldman Sachs and JPMorgan on a flotation of the enterprise that would happen subsequent yr.The banks are additionally giving recommendation on a possible sale of the enterprise in a dual-track course of, though an IPO is seen by these concerned within the course of as the popular choice to fund future development, stated individuals briefed on the state of affairs. Huel declined to remark.Huel makes “full meals” powders, drinks, snacks and dried meals which can be assembled from plant components such as oats, coconut and flax seeds and boast of containing “26 important nutritional vitamins and minerals”.The group’s founder Julian Hearn beforehand established and bought Mash Up Media, an online marketing firm that hosts vouchers on-line. He launched Huel in 2015 with its headquarters in Tring, Hertfordshire and has expanded quick internationally, together with gross sales into the US, Japan and continental Europe.A London itemizing for Huel would offer a recent increase to the UK inventory market after a latest slowing of latest IPOs and worries that investor appetite for backing fast-growth however typically low profit-making companies was waning.The FT reported final week that Imagination Technologies, the Chinese-backed UK chipmaker, had additionally appointed banks to advise on an IPO in 2022. Huel is seen as one of many UK’s most promising start-ups, with a robust social media presence to enchantment to youthful, fitness-focused shoppers. A majority of its gross sales are made on to shoppers on-line, together with by way of subscriptions.The group reported £71.6m of turnover for the yr to July 2020, up from £50.2m a yr earlier, based on its most up-to-date accounts filed at Companies House. Operating revenue for the yr to July 2020 was £700,000.James McMaster, a former govt at dessert model Gü Puds and child meals maker Ella’s Kitchen, was introduced in as chief govt in 2017, with Hearn taking the function of chief advertising officer. Huel this yr added Steven Bartlett, the 29-year-old founding father of social media company Social Chain, as a non-executive director.

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