UK perfume retailer The Fragrance Shop is preparing for a £200m stock market listing early next year.

An exclusive report by Sky News stated that the company is working with investment bank Rothschild for an initial public offering (IPO).

Based in Manchester, UK, The Fragrance Shop has a collection of designer perfumes, aftershaves and beauty gift sets.

“The business is exploring a number of strategic expansion opportunities available that will enable us to build on our success.”

The company has 215 stores and sells more than 3,000 products from 130 brands such as Chanel, Marc Jacobs and Yves Saint Laurent, Hugo Boss and Paco Rabanne.

The Fragrance Shop spokesperson told Sky News: “Following strong year-on-year growth and positive Christmas 2017 trading figures, the business is exploring a number of strategic expansion opportunities available that will enable us to build on our success and continue to trade strongly within a challenging retail market.

“At this stage, no definitive decisions have been made with regards what that will look like.”

The company saw a 5.6% increase in like-for-like sales during the six weeks to the end of December 2017.

Founded in 1994, The Fragrance Shop is owned by Sanjay Vadera.