Delticom Aims For Autumn IPO
Delticom AG, known as mytyres.co.uk in the UK, is aiming to make its debut on the Frankfurt stock exchange this Autumn. In 2005 Delticom reported 129 million euros in sales, an increase of approximately 60 per cent. Roughly 5.6 million euros of this was EBIT, according to German newspapers.
“We see good possibilities of developing our already strong international operational readiness further in the coming years around the good growth opportunities that are opening in the online tyre market,” commented Delticom director, Dr Andreas Pruefer.
Altogether Delticom had recorded approximately 974,000 registered customers by June 2006. And the last three years have seen the company improve conversion by 61.2 per cent, according to the company. Delticom estimates that in 2005 only around 1 per cent European tyre market and 1.8 per cent German market was bought online, meaning there is still strong potential.
Earlier this year Delticom published a press release warning that “penny pinching drivers are saving money by purchasing used tyres.” The company called the trade in part worn tyres “a false, and potentially lethal, economy measure.”
Rainer Binder, director of Delticom, said: “Part worn tyres – often from Germany – are available for sale in the UK but there is no way of knowing their previous history. These may have come from accident damaged vehicles that have ended up being dismantled or crushed. Think of this: would you hire a child minder without references? Of course not – so why risk lives on used rubber when there’s no way of guaranteeing its performance.”
mytyres.co.uk supports a move towards a minimum legal tread depth of 3mm – instead of the current 1.6mm. This would outlaw the majority of part worn tyres on sale in the UK. Binder explains: “In Germany motorists have been made aware the superior performance of tyres with at least 3mm tread depth remaining, mainly because of differing driving conditions and weather. That means many people change tyres well before the legal limit. The cast-offs are often exported, some of them finding their way to Britain.
“Part worn tyres obviously won’t last as long, claims mytyres.co.uk. You could spend the same money over a period of time buying at least two sets of part worn tyres to one set of new ones, yet get poorer grip and traction – especially in wet or slippery conditions, worse fuel economy and in some cars a poorer ride quality. What’s the point?”