Aroma chain is set for flotation

Aroma, the London-based café chain, is poised to announce flotation plans in order to raise enough cash to expand further.

The company has already opened six branches this year, taking its total to 24, but managing director Gavin Williams believes further expansion is needed to continue to compete in the cutthroat café and coffee-bar market.

Recent speculation has suggested that Aroma might try for a listing on the Alternative Investment Market, but the company says it wants a full market listing.

Williams says that much of the preparation for a flotation has already been done and an announcement should be made in the next fortnight. It is possible that the flotation could be made by reversing into a company already listed on the London Stock Exchange.

All existing Aroma cafés are in or near London, but a flotation would precede national expansion, said Williams.