New Look owner pulls plans for London listing as Brexit uncertainty weighs

By

Sandra Halliday

Published
Mar 27, 2017

New Look owner Brait SE has postponed plans to list on the London Stock Exchange and relocate its HQ to Britain as uncertainty over Brexit and the UK’s trading position in two years’ time makes such a move too risky.

And with New Look having struggled in recent periods (with comparable sales down almost 5% in Q3), its owner will be looking for a much more favourable business environment in Britain before investing heavily there.

While the UK government has said it would go a long way to lure business to the country with initiatives such as lower corporate tax rates, until the country actually concludes its Brexit talks and leaves the EU, many businesses are delaying spending decisions.

Brait, an investment company based in Malta, is certainly waiting to see just what will happen.

“In light of the uncertainty introduced by the timing and form of Brexit and the potential impact on capital markets, the board has determined not to proceed with the transfer and premium listing at this time,” it said. But it added that it “remains convinced of the long-term benefits” of the move, and could revisit the plans in the future.

Brait originally announced its London listing and UK HQ plans in September, several months after the Brexit vote. But back then there was plenty of talk about a so-called soft Brexit that would see the UK retaining free trade status and offering freedom of movement to EU nationals. Since then, prospects of a hard Brexit have increased.

But Brait’s long-term plans to move to and list in the UK make sense given its ownership of several major British businesses, including Virgin Active gyms and food retail chain Iceland.