CLB Capital Bars

RNS Number:4232Q
SFI Group PLC
5 September 2000


                      SFI Group plc
                            
             Acquisition of Licensed Outlets
                            
SFI   Group,  the  fastest  growing  mainstream  UK   pub
retailer,  has entered into agreements with Capital  Bars
plc  and  Greene  King plc to acquire 10 licensed  retail
outlets  for a total consideration of #5 million, payable
from existing resources.

SFI  has acquired two outlets from Greene King in Central
Wolverhampton and Central Stafford. They currently  trade
under  the  Newt  and  Cucumber names  but  will  be  re-
developed  and converted into SFI brands in the immediate
future.

SFI  is also acquiring eight properties from Capital Bars
plc,  which  will complete the exit of that company  from
the  UK  bar/restaurant market.   Five of  these  outlets
trade  under  Break for the Border and Borderline  names,
two   in   Charing  Cross,  London,  one  at  the  London
Palladium, at Oxford Circus, and two in Central Leeds and
two  in  Peterborough.  A  new 25  year  lease  has  been
completed in respect of the London Palladium property.  A
12,000 square foot development site is being acquired  in
Cardiff Bay.

The  current book value of the assets being acquired from
Capital Bars, before write downs, is #5.25 million.   Net
sales in the last audited year to 31 March 1999 were #7.4
million  although four outlets in Leeds and  Peterborough
traded  for  only  part of that period. The  attributable
profit for the period was #33,000 after central costs but
before interest and tax.  The consideration for the total
acquisition is #4.7 million.

The Board of SFI believes that the application of its own
brand  management, retail and purchasing synergies  offer
significant  scope  for  material  improvement   in   the
financial  performance  of  these  units,  as  has   been
achieved  with the units acquired from Capital Radio  plc
in October 1999.

All  of these licensed outlets will in the immediate term
trade under their existing format and will be redeveloped
as appropriate into SFI's core brands.

These acquisitions represent rare opportunities to obtain
properties  of suitable scale in strategic locations  and
with  licenses  in  place. The  three  West  End  outlets
benefit from 3.00am licenses.

SFI  continues  to  be committed to  its  organic  growth
programme, opening 25 new outlets this year. The  Capital
Bars'  outlets  being  acquired are incremental  to  this
development programme.

Tony Hill, Chairman of SFI Group plc, commented:
"  The acquisition of these outlets is strategically very
beneficial to SFI. The majority of the outlets are  of  a
high  standard and a well above average size. They extend
our  portfolio  in the West End and the Midlands  and  as
importantly,  they are all licensed properties  which  we
believe will add to the value of our overall landbank."


Enquiries:

SFI Group plc
Tony Hill, Chairman                          Mobile:  0973 113104
Clive Eplett, 
Managing Director - Development
                                             Tel:     01483 227900

College Hill                                 Tel:     020 7457 2020
James Henderson
Justine Warren

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