Australian and New Zealand book retailer REDgroup – which owns Whitcoulls and Borders – has set the market abuzz with talk that its private equity owners will float the business before Christmas on the back of a 301 per cent rise in pre-tax earnings.

REDgroup is the collective brand name for Whitcoulls in New Zealand, Angus & Robertson in Australia, Borders Asia-Pacific, Supanews and Calendar Club.

The company lifted its earnings before interest tax and depreciation (ebitda) to A$42.2 million ($52.81m) in the year to August 2009, up from A$14.1m ($19.06m) last year.

The group's revenue was up 50 per cent on last year at A$645.03m ($807.38m), albeit off a larger base after the acquisition of 30 Borders stores (23 in Australia, five in New Zealand and two in Singapore).

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