Leapfrog, the UK's second largest nursery chain, is living up to its name in terms of the way its growth has bounded along since it launched in 1998. In less than four years it has set up 34 nurseries, with many more planned. Last week, it declared its intention to take another big jump and float on the Stock Exchange (see News, page 4). This appears to be a daring move as Leapfrog is not yet a profitable company and the stock market has not been performing well of late. The group does have the advantage, however, of owning the freehold of most of its nursery buildings, making it a more attractive proposition. The flotation is a significant event for the nursery sector, showing how far it has matured, and it will be watched with great interest by the City and by other nursery chains. Its success or failure will affect how the whole sector is viewed and valued.
Leapfrog, the UK's second largest nursery chain, is living up to its name in terms of the way its growth has bounded along since it launched in 1998. In less than four years it has set up 34 nurseries, with many more planned. Last week, it declared its intention to take another big jump and float on the Stock Exchange (see News, page 4).
This appears to be a daring move as Leapfrog is not yet a profitable company and the stock market has not been performing well of late. The group does have the advantage, however, of owning the freehold of most of its nursery buildings, making it a more attractive proposition. The flotation is a significant event for the nursery sector, showing how far it has matured, and it will be watched with great interest by the City and by other nursery chains. Its success or failure will affect how the whole sector is viewed and valued.
The biggest challenge among all this expansion is, of course, to keep quality high - and that means being able to attract and keep good staff amid the current shortages. That's probably a more daunting prospect than a flotation for most at the moment!
