Flotation makes pounds 120m for the man who tailored New Look

TOM SINGH, whose stake in the New Look fashion chain will be worth pounds 120m when it comes to the stock market next month, paid himself pounds 10m in salary and bonuses over the past five years, according to the group's pathfinder prospectus published yesterday. This is in addition to the pounds 170m he and his family received from selling a controlling stake in the business to venture capital backers three years ago.

Mr Singh, the son of Asian immigrants who came to Britain in the 1940s, received remuneration of pounds 1.3m in 1994, then pounds 2.9m, pounds 4.3m, pounds 584,000 and pounds 557,000 in the following years. His average annual salary of almost pounds 2m over that period would have made him one of Britain's best-paid retailers with a salary far higher than his counterparts at larger publicly quoted companies such as Tesco and Kingfisher. "He has made a lot of money out of the company, but then it was a private business and doing very well," a spokesman said.

Mr Singh founded New Look from a single shop in 1969 and has built it to a chain of 444 stores with sales of pounds 323m.

Mr Singh's pay will fall to pounds 235,000 following flotation where he will take the role of managing director, commercial. Jim Hodkinson, who joined the business last month from B&Q, will be the highest paid director, on pounds 450,000.

The salary details emerged as New Look reported operating profits of pounds 40m for the year to March, up from pounds 33m the previous year. Sales rose from pounds 242m to pounds 332m. It said like-for-like sales in current trading are 8 per cent on the same period last year.

On flotation New Look is expected to be valued at around pounds 300m-pounds 350m. The float will raise pounds 82m, which will be used to redeem preference shares and repay cent.

Mr Singh will retain his 30 per cent stake and is selling no shares. Thirty per cent of the business is being offered for sale through a placing and intermediaries offer.

Analysts say the valuation will equate to a share price of 150-175p. This will mean a forward rating of 10-12, a substantial discount to the retail sector. "At that sort of price I would think it would very well," said one analyst.

New Look has 409 UK outlets and plans to open a further 140. It abandoned its first attempt at flotation in 1994 due to volatile stock market conditions and concerns about the group's rapid growth.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Executive / Foreign Exchange Dealer - OTE £40,000+

£16000 - £40000 per annum: Recruitment Genius: A Foreign Exchange Dealer is re...

SThree: Experienced Recruitment Consultant

£20000 - £40000 per annum + OTE + Incentives + Benefits: SThree: Established f...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40/45k + INCENTIVES + BENEFITS: SThree: The su...

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

Day In a Page

The long walk west: they fled war in Syria, only to get held up in Hungary – now hundreds of refugees have set off on foot for Austria

They fled war in Syria...

...only to get stuck and sidetracked in Hungary
From The Prisoner to Mad Men, elaborate title sequences are one of the keys to a great TV series

Title sequences: From The Prisoner to Mad Men

Elaborate title sequences are one of the keys to a great TV series. But why does the art form have such a chequered history?
Giorgio Armani Beauty's fabric-inspired foundations: Get back to basics this autumn

Giorgio Armani Beauty's foundations

Sumptuous fabrics meet luscious cosmetics for this elegant look
From stowaways to Operation Stack: Life in a transcontinental lorry cab

Life from the inside of a trucker's cab

From stowaways to Operation Stack, it's a challenging time to be a trucker heading to and from the Continent
Kelis interview: The songwriter and sauce-maker on cooking for Pharrell and crying over potatoes

Kelis interview

The singer and sauce-maker on cooking for Pharrell
Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

Britain's 24-hour culture

With the 'leisured society' a distant dream we're working longer and less regular hours than ever
Diplomacy board game: Treachery is the way to win - which makes it just like the real thing

The addictive nature of Diplomacy

Bullying, betrayal, aggression – it may be just a board game, but the family that plays Diplomacy may never look at each other in the same way again
Lady Chatterley's Lover: Racy underwear for fans of DH Lawrence's equally racy tome

Fashion: Ooh, Lady Chatterley!

Take inspiration from DH Lawrence's racy tome with equally racy underwear
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Charlie Austin: Queens Park Rangers striker says ‘If the move is not right, I’m not going’

Charlie Austin: ‘If the move is not right, I’m not going’

After hitting 18 goals in the Premier League last season, the QPR striker was the great non-deal of transfer deadline day. But he says he'd preferred another shot at promotion
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea