Tempo looks at float to finance stores

Tempo, Britain's fifth biggest electrical retailer, is looking at a stock market flotation to help fund an ambitious expansion programme throughout the country.

The Kingston-based group intends to open another 11 large stores at least in 1997 - including its first in Birmingham - in a challenge to the industry leaders Dixons and Kingfisher's Comet chain.

That would take the chain to 40 stores, creating 160 new jobs. Turnover is already set to pass the pounds 100m mark this year.

"Flotation is being discussed. With investment per store running at around pounds 500,000 a time, there are tremendous cash requirements for growth," said Michael Kraftman, Tempo's marketing director.

Tempo was founded in the early 1970s by Mr Kraftman's father, Gerald, the current chairman. It remains family controlled.

In 1992, venture capital group 3i invested pounds 3.25m for a 23.5 per cent stake to fund expansion into electrical superstores, offering computers alongside traditional TV, hi-fi and kitchen electricals, including washing machines and fridges.

Adopting a mixed format retail approach, as well as the main brands, Tempo also sells computers and fridges under its own in-house "Vanilla" label.

Now Tempo's sales per square foot are among the highest in the sector. Growth this year is set to propel it to fourth place in the sector, ahead of Tandy and behind Powerhouse, which was recently spun off by Hanson.

Tempo had a lively Yuletide, with like-for-like sales up 10 per cent over the holiday period.

"Christmas has been very good. There have been two peaks, with presents mainly before Christmas and, from Boxing Day, the bigger ticket items as people buy for themselves in the sales," said Mr Kraftman.

Dixons, the sector leader, is also expected to report robust Christmas sales with first-half results on Wednesday, led by strong demand for personal computers.

Tempo's 29 stores are based in London and the South-east, but the growth strategy is set to roll out the format into the Midlands and South-west, with further expansion into the North on the cards in future.

The chain made operating profits of pounds 2.9m on sales of pounds 85.7m in the year to the end of June 1996.

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

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
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones