Investor Gatemore urges Watches of Switzerland to ditch London listing for US

The Leicester-based company, which runs 221 stores, is currently listed on the London Stock Exchange and a member of the FTSE 250 index

Activist investor Gatemore has thrown down the gauntlet to Watches of Switzerland Group, pressing for a switch of its primary stock market listing from London to the US.

This move follows a challenging period for the London Stock Exchange, which has seen several companies abandon their London listings in favour of international markets. Gatemore Capital Management believes that such a relocation would "fully unlock the value of its stock" for the Leicester-based retailer, which operates 221 stores and is a part of the FTSE 250 index.

The London-based investor contends that Watches of Switzerland stands to gain from better "access to deeper pools of capital" and "significantly greater liquidity" on the other side of the pond.

With the US market becoming increasingly lucrative for the retail giant, accounting for about 40% of its latest annual revenues, thanks in part to strategic acquisitions, Gatemore is also pushing for a share buyback to ramp up shareholder value. Last month, Gatemore disclosed a stake of 1.9 million shares in the company, which translates to just shy of 1% ownership.

Liad Meidar, managing partner at Gatemore, said: “Watches of Switzerland has established itself as the leading retailer of premium watches. It is an exceptional business, providing customers a premium experience and boasting longstanding partnerships with some of the strongest brands in the world.

“With a clear leading position in the UK market, the company is now well positioned to unlock additional growth in the massive and underpenetrated US market. We are impressed with the track record and ambition of the management team, and we call on them to consider a listing in the US to fulfil WOSG’s potential and help unlock the intrinsic value of this business.”

A Watches of Switzerland spokesman said: "We maintain an open dialogue with all our shareholders but do not comment on individual shareholder views."

The retailer's shares dipped 1% to 432.4p on Wednesday morning.