Ted Baker founder worth pounds 37m after float

Ted Baker, the designer and retailer of fashionable men's clothes, is coming to the stock market in a pounds 56m flotation which will make the company's founder, Ray Kelvin, worth around pounds 37m, writes Magnus Grimond. The windfall comes on top of pounds 3m that Mr Kelvin, chief executive, pulled out of the business as "exceptional directors' emoluments" ahead of the market launch.

The one-off payment has been justified by the company on the grounds that it has no pressing need for a cash pile built up over the past few years. Mr Kelvin is now raising pounds 12m from selling shares in a pounds 26m institutional placing and will see his remaining 45 per cent holding valued at around pounds 37m at the placing price of 135p a share. The issue is being fully underwritten by Charterhouse Tilney Securities, with first dealings expected next Thursday.

The business was founded by Mr Kelvin in 1988 before being bought out by his joint venture partner, A Goldberg, a Glasgow-based stores group. Mr Kelvin bought it back when Goldberg went under in 1990. Ted Baker's menswear brand competes against the likes of Hugo Boss, with Ted Baker Woman positioned against labels such as Katherine Hamnett.

Operating profits before the exceptional emoluments have leapt from pounds 348,000 in 1994-95 to pounds 4.16m last year, on sales up from pounds 4.22m to pounds 14m.