PlusNet plans LSE flotation

Internet service provider PlusNet, which has been noticeably aggressive in pricing its broadband services, has announced its intention to float on the London Stock Exchange (LSE).

PlusNet was one of the first ISPs to offer a sub-£20 per month ADSL package for consumers, including a 512Kbps service that cost less than some monthly dial-up connections.

The ISP also offers managed broadband services, which are sold on by BT to its corporate customers.

PlusNet claims that it had about 165,000 customers at the end of March 2004, of which around 60,000 are broadband users.

The company posted an operating profit of £1.8m for the year ending December 2003, and will seek admission to the LSE's Alternative Investment Market. It is also understood to be looking to acquire other ISPs.

"We have developed a profitable operating platform, grown our customer base five-fold in the past three years and established PlusNet as a leading broadband services business," said Lee Strafford, chief executive of PlusNet, in a statement.

"The proposed flotation will further raise our profile with our partners and customers and within the industry, and assist us in developing our business as we look to become the broadband provider of choice for the experienced internet user in the UK."