Brakes go on Dyno-Rod share float

INVESTORS planning to buy drain clearance-to-pest control firm Dyno-Rod have postponed a stock market flotation of the business.

The investors, who are buying Dyno-Rod from founder Jim Zockoll, delayed today's proposed Alternative Investment Market listing after failing to reach a deal with Zockoll over his reported £60m asking price.

They had planned to raise £47.5m towards the purchase through the public offering.

Stockbroker Seymour Pierce, which is managing the deal for the investors, said they were still talking to Zockoll 'with a view to getting a deal done in the next couple of days'.

Seymour Pierce director Jonathan Wright said: 'We are a short way away from each other on price, but it can still happen.'

Zockoll,74, revealed last month he planned to retire and to sell Dyno-Rod, reportedly to management buy-in vehicle Dyno, led by chief executive Kevin Mahoney.

The former pilot, who owns 85% of the company, would retain a stake of around 10% in the new business. He has seen the business grow from a single operation to a nationwide company since founding it as a plumbing firm in Wimbledon in 1963, during his spare time while working as a pilot for Pan Am.

The company is now a 167-strong franchise operation offering services ranging from emergency plumbing and locksmith services to pest control.

As well as domestic customers, it provides services to a range of corporate clients, including British Gas and housebuilders Barratt and Taylor Woodrow.

The company employs 180 staff across Dyno-Rod, Dyno Locks, Dyno Plumbing, Dyno Kil and its 24-hour emergency call centre.