Leapfrog bows to uncertain market

Leapfrog had said in April that it planned to raise 30 million through floating in the first half of the year, with the company valued at an estimated 70 million. But faced with uncertain market conditions, the group decided not to proceed.

The move followed the disappointing stock market debut of music retailer HMV, and news that Punch Taverns had pulled its plans to float and then re-issued shares at a lower price.

Leapfrog executive chairman Derek Mapp, who steered the Tom Cobleigh pub chain through a successful flotation in 1995, said, 'Quite simply, although we could have raised the money we were seeking, it would have been at a valuation not acceptable to Leapfrog's existing shareholders. While this is disappointing, particularly given the hard work put into the process by many people, we need to keep a sense of perspective - Leapfrog is an excellent business, with sufficient resources to continue to grow our nursery portfolio for the time being. We remain committed to our objective of creating the UK's largest and best private nursery group.'