Castore co-founder slams London Stock Exchange as ‘sub-optimal’ for British IPOs

Castore’s co-founder Tom Beahon has criticised the London Stock Exchange, and said it needs to offer something different to drive British-founded businesses like the sportswear retailer to float in the UK.

Speaking on an upcoming episode of City AM’s Boardroom Uncovered podcast, Beahon explained that it would be a “shame” if the retailer ended up completing an initial public offering (IPO) overseas rather than in London.

However, the executive maintained his previous stance that the company had “no immediate plans” to list.

Beahon said: “As a British entrepreneur, someone that founded a company in the UK in the North of England, it would be brilliant to one day be able to list in the UK.

“But it’s very hard for me to look at the UK market right now and say that is the optimal next step for my business.”

He noted that he did not think there would be “any single change” that was made that “alters that impact or the that makes it more attractive” and that it would “take time”.

He elaborated: “But at the moment, if I look at what’s going on in the US markets, if I look at the private equity markets, if I look at some opportunities we have in the Middle East, in the Far East, in Asia, it’s very hard for me to look in the mirror and say that the UK is the best place for me to grow my business and raise capital.

“I don’t have all the answers. The fact that we’re having a conversation is a great start, but the London Stock Exchange should not take for granted that the ultimate end goal for British entrepreneurs is to list in this country, because I don’t think it is any more.”

The co-CEO claimed that “the status quo clearly is suboptimal” and that the London Stock Exchange and government needed to do more to entice businesses to list in the UK.

He noted: “Some changes will need to be made because it would be a shame if Castore was the list outside of the UK.

“I’ve got a fiduciary and moral duty to shareholders to optimise the value of the business. If you have a global ambition, as we do, particularly in sports where Castore all operates, at some point you need to penetrate the US.”

The exec argued that you could not be a £1bn turnover company in sports, which he “would love to get us to” without entering the US, and so “that market will always be interesting for us”.

“Equally, if I look at what’s happening in the Middle East and the investments that are being made in sports from in Qatar and Saudi and more broadly across the UAE, if I look at some of the deregulation and changes that are happening in markets like India and China, some very exciting things are happening,” he said.

It comes after the Times reported that Castore was looking towards its long-term goal of stock market flotation in January, following its “record Christmas”.

The brand hailed its “strongest ever trading performance” over the festive period, driven by strong football shirt sales and growth in womenswear, as it planned to open five to 10 stores in 2025.

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