Aim listing for five-a-side operator

THE growing popularity of organised five-a-side football is set to see another operator turn to the stock market.

Powerleague, which runs 26 sites across the UK and has plans to open a further 16, is expected to have a value of about £40m when it lists on the Alternative Investment Market (Aim) next month.

Executive chairman Claude Littner, a former chief executive of Tottenham Hotspur, has run the company since leading a management buyout from investment company 3i Group two years ago. The business was formed in 1999 and generated revenues of £15.3m and profits of £2.4m in the year to the end of June.

Littner said the float would provide the company with extra resources to help Powerleague open more outlets and develop more commercial deals. The company already has arrangements in place with Nike, Carlsberg, Honda and Barclays.

The flotation on Aim is expected to raise funds of £12.5m and produce an £11m pay-day for the current management team, which owns 85% of the company. Following the float their holding will be diluted to 49%.

Today Littner said that the company was advancing across the board and was confident of future development as a quoted company. He added: 'We are breaking new ground in the five-a-side market particularly in terms of developing commercial clients and attracting high profile sponsors.

'Joining Aim will support these objectives and provide the financial platform for our next stage of growth.'

If the Aim flotation comes off, Powerleague will find itself in good company. Rival Goals Soccer Centres joined the market in December and has since seen its shares surge ahead. The company's results have easily met City expectations, with a doubling of pre-tax profits to £600,000 on the back of a 35% rise in sales to £8.3m.

Do these operators' shares represent a good investment? Although die-hard football fans may relish the thought of a framed Manchester United or Aston Villa share certificate, the reality is that football clubs' fortunes are heavily influenced by players' wage demands and television revenues.

Unlike football clubs Powerleague and Goals have a similar business model to health and fitness club operators, who have all boomed in recent years despite warnings in their sector of overcapacity.

Another company to list on Aim recently which also has an interest in football, albeit more populist than Powerleague, is Shed Productions. This is the award-winning independent television production company responsible for the ITV series Footballers' Wives. Set up by four former Granada employees, Shed is currently valued at £52m. Its shares are trading at 105p, compared with a listing price of 114p.