The number of new share flotations in London fell by one-third last year as the tough market conditions continued, a survey has shown.

Research from PricewaterhouseCoopers (PwC) found the number of new listings fell 34% to 91, from 138 in 2001.

London was not the only market to experience a downturn, with a fall in the number of flotations being seen across Europe.

And London actually managed to increase its share of new flotations among the principal markets in Europe as a whole, climbing from 44% to 54%.

"Although many companies are still making the preparations for a listing they are playing a waiting game until market confidence starts to return," said Tom Troubridge, head of PwC's London Capital Markets Group.

"We still do not expect the IPO market to pick up much before the second quarter of this year at the earliest."

During the final three months of 2002, the London market saw only 16 flotations, compared with 34 in the same period the previous year. Of these 16 flotations, 14 were on the AIM market.

Mixed fortunes

In the summer, DIY retailer Focus Wickes and directory business Yell abandoned flotation plans.

At the time both firms blamed the turbulent conditions on the world's markets for their decisions.

On Monday a Yell spokesman told BBC News Online that flotation remained a "possible option" for the future, but at the moment it was concentrating on managing its business.

Despite the depressed condition of the stock market last year some flotations did get away.

Music retailer HMV Group, bookmaker William Hill and fashion brand Burberry all made their debuts on the market in 2002.

HMV shares immediately fell from their opening price of 192p and have yet to regain that level.

On Friday the company's shares closed at 119p, a fall of nearly 40% since the flotation.

Good bet?

William Hill and Burberry have fared better, with both companies shares trading close to their opening values.

Hill's finance director Tom Singer said the timing of the company's flotation in June was "very good".

The World Cup had boosted turnover and the firm was seen as a solid profit-making business.

"Our story was exactly what the City was looking for at the time," he told BBC News Online.

He noted that market conditions are now very tough and said any firm considering floating needed to put a strong case forward.

"Investors want hard profits, visibility of earnings and significant cash flow."