TIDMBAR TIDMAVA
RNS Number : 1214U
Eclectic Bar Group PLC
28 November 2013
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN
NOR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OF SUCH JURISDICTION
This announcement is an advertisement and not a prospectus or an
admission document and does not constitute a recommendation
regarding any securities. Any investment decision must be made
solely on the basis of the admission document dated 20 November
2013 in connection with the admission of the ordinary share capital
of Eclectic Bar Group plc to trading on AIM.
This communication is directed only at (i) persons who have
professional experience in matters relating to investments falling
within Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 ("Order") (investment
professionals) or (ii) persons falling within Article 49(2)(a) to
(d) of the Order (high net worth companies, unincorporated
associations etc) (all such persons referred to above being
"Relevant Persons"). Any investment activity to which this
communication relates will only be available to and will only be
engaged with Relevant Persons.
28 November 2013
Eclectic Bar Group plc
("Eclectic", the "Company" or the "Group")
First Day of Dealings
Eclectic, one of the leading operators of premium bars in the
UK, is pleased to announce that Admission takes place and dealings
in its Ordinary Shares commence at 8 a.m. today on the AIM market
of the London Stock Exchange, under the ticker symbol BAR.
Summary
-- The market capitalisation of Eclectic on Admission at the
Placing Price of 160p will be approximately GBP20.6 million.
-- Eclectic has successfully completed a fundraising of GBP15.0 million.
-- The Company has placed a total of 6,562,500 new Ordinary
Shares raising approximately GBP10.5 million (gross) for the
Company.
-- In addition, a further 2,835,861 Ordinary Shares held by the
Group's principal shareholder, Avanti Capital plc ("Avanti"), will
be sold at the Placing Price pursuant to the Placing for
approximately GBP4.5 million enabling Avanti to sell down
completely its shareholding in the Company.
-- Eclectic will use the net proceeds of the Placing to repay a
shareholder loan owed to Avanti of approximately GBP7.3 million
with surplus net funds raised of approximately GBP1.8 million to be
used to fund organic growth prospects and new site acquisition
opportunities.
-- The number of Ordinary Shares in issue on Admission is 12,862,500.
-- Panmure Gordon acted as Nominated Adviser and Broker to the Group.
Reuben Harley, Chief Executive Officer of Eclectic,
commented:
"We are delighted to be starting life as a public Company today
and welcome all our new shareholders.
We have proven brands and an experienced management team which
together with our revised capital structure and growth funds we
will be able to implement our well established strategy. We plan to
grow the business through a combination of organic growth and new
site development and take advantage of a fragmented marketplace and
market opportunity".
For further information, please contact:
Eclectic Bar Group plc (Website: www.eclecticbars.co.uk) Tel: 020 7376 6300
Reuben Harley, CEO
John Smith, CFO
Panmure Gordon Tel: 020 7886 2500
Corporate Finance
Andrew Godber / Atholl Tweedie / Duncan
Monteith
Corporate Broking
Adam Pollock / Maisie Rose Atkinson
College Hill Tel: 020 7457 2020
Matthew Smallwood
Justine Warren
Important Notice
Defined terms used in this announcement have the same meaning as
set out in the Company's admission document dated 20 November
2013.
Panmure Gordon (UK) Limited, which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority, is acting
exclusively for the Company and no-one else in connection with this
announcement, the Placing and Admission. Panmure Gordon (UK)
Limited will not regard any other person as its client in relation
to the matters described in this announcement and will not be
responsible to anyone other than the Company for providing the
protections afforded to its clients, nor for providing advice in
relation to the Placing and Admission, the contents of this
announcement or any transaction, arrangement or other matter
referred to herein.
Group Overview
Eclectic is a leading operator of premium bars in the UK.
Eclectic's portfolio comprises 20 venues located in major towns and
cities, predominantly targeting a customer base of sophisticated
students midweek and stylish over-21s and young professionals at
weekends. The Company focuses on delivering added value for its
customers, with premium product ranges, high-quality music and
entertainment, and a commitment to high service levels and
standards.
The Group trades across its estate under a variety of brands,
including Embargo 59, Lola Lo, Sakura, Po Na Na and Fez Club. These
brands have proven themselves to be consistently cash-generative,
continuing to trade well even since the start of the global
financial crisis of 2008. Eclectic has established a stable
financial track record over the past five years with turnover in
the year ended 30 June 2013 of GBP21.2 million, representing a two
year CAGR of 16.9 per cent., and Group EBITDA of GBP3.0 million,
representing a two year CAGR of 16.7 per cent.
The Group's management team, led by Reuben Harley, who has over
25 years' experience of working in the UK pub and bar industry, is
implementing a strategy to grow the business through the
development of new sites either under the Company's existing brands
or using brands which can be successfully maintained, as well as
business acquisitions as appropriate opportunities present
themselves.
The bar market in the UK remains fragmented, and the Company is
presented with a significant number of opportunities for
acquisitions of both new sites and businesses. The management team
has demonstrated its ability to achieve successful openings of new
venues, on average exceeding its target returns.
The key strengths of Eclectic are:
-- it targets a premium customer base;
-- gross margin of approximately 80 per cent.;
-- premium product ranges, high-quality music and entertainment,
and commitment to service and standards;
-- management team with a track record of delivering operational
and financial improvements and value-enhancing acquisitions;
-- national geographic spread, primarily in university towns
which, in management's view, combine an active night time economy
and demographics to support premium-positioned bars;
-- capacities averaging approximately 400 per site;
-- detailed framework of operational and financial systems and
disciplines throughout the business; and
-- a clear development and training programme for the people within the business.
Directors' Biographies
The biographical details of the directors upon Admission are as
follows:
Reuben Harley - Chief Executive Officer
Reuben has worked in the UK pub and bar industry for over 25
years. His career started at Grand Metropolitan plc before becoming
an area manager at Greenalls Inns in the late 1990s. Between 1998
and 2004 he worked at SFI Group PLC, where he moved through the
roles of Operations Manager, Regional Manager, Brand Manager of the
Litten Tree brand in the South of England, subsequently Brand
Manager nationally for the Bar Med brand and then Divisional
Director responsible for the disposal division of 62 sites. Prior
to joining Eclectic as CEO in June 2006 he was Business Development
Director for The Nightclub Company.
John Smith - Chief Financial Officer
Since qualifying as a chartered accountant (ACA) with Touche
Ross & Co in 1985 John has held a variety of senior finance
roles. From Head of Finance at International Currency Exchange plc
he then became Group Finance Director at Vision Express until it
was sold to Grand Vision in 1997. After two years as Joint UK
Managing Director of Vision Express post the acquisition he then
became Finance Director of First Leisure Corporation plc in 1999,
before becoming Chief Executive in 2003, and then Chief Executiveof
The Nightclub Company which was created by the purchase of 22
nightclubs from the receiver of First Leisure. John became Finance
Director of Eclectic Bars Limited in June 2006.
James 'Jim' Fallon - Non-Executive Chairman
Since 1994 Jim has worked almost exclusively within the leisure
sector as a lender, adviser, owner, operator and most recently
business consultant. Jim worked for Imperial Chemical Industries in
electrical engineering for eight years prior to joining Midland
Bank in 1991. He was at HSBC until 2002, latterly leading the
leisure team, when he left to set up the consumer sector corporate
finance advisory business McQueen Limited. He was specifically
responsible for the leisure sector within McQueen as well as much
of the day to day running of the business. Jim works as a
consultant to a variety of UK leisure businesses through his
company, Graybridge Solutions Limited. In addition he is Chairman
of Newman Bars Ltd which owns and operates Lowlander Grand Café, a
continental bar brasserie business in Covent Garden.
Clive Watson - Non-Executive Director
Clive qualified as a chartered accountant with Price Waterhouse
in London in 1986 then joined the investment bank Manufacturers
Hanover Limited where he spent three years. He joined Regent Inns
plc as Finance Director and Company Secretary in 1990. Clive left
Regent Inns plc in 1998 and co-founded Tup Inns Limited where he
was responsible for financial and commercial matters as well as
acquisitions. Clive was appointed in 2000 as Finance and Commercial
Director of The Capital Pub Company PLC which was admitted to
trading on AIM in 2007. In 2008 he was appointed Chief Executive
and oversaw the sale to Greene King plc in 2011 for GBP93 million.
He then set up The City Pub Company in 2012 under the Enterprise
Investment Scheme which operates a portfolio of pubs in cities and
large market towns in the south of England.
Placing Statistics
Placing Price per Ordinary Share 160 pence
Number of new Ordinary Shares being issued pursuant
to the Placing 6,562,500
Number of sale shares being sold by Avanti 2,835,861
Total number of Placing Shares 9,398,361
Number of Ordinary Shares in issue at Admission 12,862,500
Percentage of enlarged share capital represented 51.0 per cent.
by the new Placing Shares
Gross proceeds of the Placing GBP15.0 million
Estimated net proceeds of the Placing receivable GBP9.1 million
by the Company (excl. VAT)
Estimated net proceeds of the Placing receivable GBP4.4 million
by the Avanti
Market capitalisation of the Company at the Placing GBP20.6 million
Price at Admission
TIDM BAR
ISIN GB00BG49KW66
Website www.eclecticbars.co.uk
----------------------------------------------------- -----------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEAXFXADSDFFF
Avanti Capital (LSE:AVA)
Historical Stock Chart
From Jan 2025 to Feb 2025
Avanti Capital (LSE:AVA)
Historical Stock Chart
From Feb 2024 to Feb 2025
