TIDMELTA
RNS Number : 9164L
Electra Private Equity PLC
16 September 2021
Electra Private Equity PLC
Hostmore Trading Update and Board Composition
16 Sept 2021
Electra Private Equity PLC ("Electra") is pleased to issue a
trading update for its hospitality brands, Fridays and 63rd+1st,
for the 16 week period since 17 May 2021, and to announce the
composition of the Board of Directors of Hostmore PLC ("Hostmore"),
the parent company for those brands.
As previously announced, it is Electra's intention to demerge
Hostmore and for the shares in Hostmore to be admitted to the main
market of The London Stock Exchange. This process is on track to
conclude in the fourth quarter of this year.
Subsequent to this, late this calendar year, it is intended that
Electra will be renamed Unbound Group PLC, as the parent company of
Hotter Shoes, and transition to AIM.
Hostmore has been created to provide a platform for the
development of hospitality brands to supplement the continued
growth of Fridays, the rejuvenated American-themed casual dining
brand, and 63rd+1st, a new city-based, cocktail-led bar and
restaurant brand. The management team of Hostmore, led by Robert B.
Cook as Chief Executive Officer and Alan Clark as Chief Financial
Officer, has a successful track record of building and leading
businesses in the hospitality and leisure sectors.
Hostmore Trading Update
Over the 16 week period since the resumption of restricted
indoor dining on 17 May, the company has reported Like for Like
growth vs 2019 averaging +11.8%. On a VAT adjusted basis the Like
for Like growth vs 2019 over this period was (0.3%).
In the 7 weeks since the further reduction of Covid-19
restrictions on 19 July this LFL growth vs 2019 has averaged
+15.2%. On a VAT adjusted basis the Like for Like growth vs 2019
over this period was 2.6%.
Performance over the entire 16 week period reflected a +3.9% *
outperformance of the market and over the period since 19 July
sales have outperformed the market by +3.5%*.
Net debt**, adjusted to include all covid-related accruals, has
reduced to GBP36.4m at the end of August from GBP46.0m at the end
of December 2020. Cash generated from operation over the 3 complete
months since reopening, of June to August, has been GBP12.5m
reflecting a 91% conversion of EBITDA **.
*market based on industry data compiled by Coffer CGA Business
Tracker
**based on unaudited management reporting pre IFRS16
Robert B Cook, Chief Executive Officer, commented:
"We are delighted with the continued strong performance of our
two brands, Fridays and 63rd+1st. Fridays continues to outperform
the market and we are opening our next two 63rd+1st sites - in
Glasgow later in September and Harrogate in November - following a
successful launch in Cobham earlier this year in May. Whilst the
industry continues to face Covid-related challenges, I am confident
in our ability to continue managing these well. We remain on track
for listing Hostmore later this year, and our strong performance
despite the challenges of the last eighteen months underpins our
confidence in our ability to create long-term value for
shareholders."
Hostmore Board
The Board of Directors of Hostmore will be as follows:
-- Neil Johnson , Chairman and Chair of the Nominations
Committee. Neil has committed to chairing Hostmore through a period
of approximately six months from its listing until its Annual
General Meeting in Spring 2022.
-- Robert B Cook , Chief Executive Officer. Robert joined
Fridays as Chief Executive Officer in December 2019 from his role
as CEO of Virgin Active UK and was previously CEO of hotel brands
De Vere, Malmaison and Hotel Du Vin.
-- Alan Clark , Chief Financial Officer. Alan joined Fridays as
Chief Finance Officer in February 2020 from his role as Chief
Financial Officer of D&D London.
-- David Lis , Senior Independent Director. David is currently
the Senior Independent Director of Electra, and will stand down
from the Electra Board prior to Admission.
-- Gavin Manson , Non-Executive Director. Gavin is Chief
Financial and Operating Officer of Electra and will stay on the
Electra Board as it transitions to Unbound Group PLC.
Electra is pleased to announce that the Board of Directors of
Hostmore will be joined by three newly appointed independent
Non-Executive Directors, namely Andrew Blurton, Louise Stonier and
Jane Bednall.
-- Andrew Blurton, who will chair the Audit and Risk Committee.
Andrew is currently the Finance Director of Advanced Living Limited
and is a member of the Bank of England Decision Maker Panel. He has
extensive public company Board experience including having
previously been Group Finance Director of MWB Group plc.
-- Louise Stonier, who will chair the Remuneration Committee.
Louise is currently Chief People and Culture Officer of Pets at
Home Group PLC.
-- Jane Bednall, who is currently a Non-Executive Director of
DFS Furniture Plc and a member of its Audit, Remuneration and
Nomination Committees. Jane has previously served as a
Non-Executive Director for EI Group after executive leadership
roles within British Airways and SSE plc.
Robert Henry , General Counsel & Company Secretary, will be
the Company Secretary to the Board of Directors of Hostmore. Robert
joined Fridays in April 2021 as Head of Legal.
Full biographies of the Board members are available below.
Neil Johnson, Chairman of Electra, commented:
"We are pleased to have assembled a strong Board to lead
Hostmore as a newly listed group in the hospitality and leisure
sectors. With these new appointments we have brought together
significant experience in governance, finance, people and consumer
markets, together with relevant sector and risk management
expertise. These capabilities will promote the strategic
development of the business and will complement the expertise of
the senior leadership team led by Robert B. Cook."
S
ENQUIRIES
Electra Private Equity PLC
Gavin Manson, Chief Financial and Operating Officer
020 3874 8300
Vico Partners
John Sunnucks, Iain Rawlinson, Sofia Newitt
020 3957 5045
Joint Financial Advisers for the Demerger
HSBC Bank plc
Joint Financial Adviser and Joint Broker to Electra Private
Equity PLC
Simon Alexander
Sam McLennan
+44 20 7991 8888
Numis
Joint Financial Adviser and Joint Broker to Electra Private
Equity PLC
Stuart Dickson
Alec Pratt
Jonathan Abbott
+44 207 260 1000
NOTES TO EDITORS
Hostmore Board of Directors
-- Neil Johnson , Chairman, Chair of the Nominations Committee
and a member of the Disclosure Committee. Neil has committed to
chairing Hostmore through a period of approximately six months from
its listing until its Annual General Meeting in Spring 2022. He is
currently Chairman of Electra and will stay on the Electra Board as
it transitions its listing to AIM later this year, and is renamed
as Unbound Group PLC, the parent company for Electra's major
remaining asset, Hotter Shoes. Neil is also currently Non-Executive
Chairman of QinetiQ Group plc and Deputy Chair and Senior
Independent Director of the Business Growth Fund. Neil was formerly
Chairman of Cybit Plc, e2v, Synthomer Plc, Motability Operations
Group PL, Tenon Group, Hornby, Umeco and Centaur Media Place. He
was also formerly the Chief Executive Officer of the RAC from 1994
to 2000.
-- Robert B Cook , Chief Executive Officer and the Chair of the
Disclosure Committee. Robert joined Fridays as Chief Executive
Officer in December 2019 from his role as CEO of Virgin Active.
During his executive career, Robert has held a number of senior
roles and directorships in hospitality companies. He was the Chief
Executive Officer of De Vere Hotels and Resorts for three years,
and the Chief Executive Officer of Malmaison and Hotel du Vin for
eight years, from January 2004 to January 2012.
-- Alan Clark , Chief Financial Officer and a member of the
Disclosure Committee. Alan joined Fridays as Chief Finance Officer
in March 2020 from his role as Chief Financial Officer of D&D
London from November 2018 to February 2020. He gained international
experience as Chief Financial Officer at Sandals Resorts (Jamaica)
from November 2015 to February 2018 and at The Hongkong &
Shanghai Hotels Limited from May 2014 to November 2015. Prior to
that, he also gained domestic experience as Group Finance Director
at Rocco Forte Hotels from April 2010 to March 2014 and at
Malmaison and Hotel du Vin from January 2006 to April 2010.
-- David Lis , Senior Independent Director and a member of the
Audit and Risk Committee and the Nominations Committee. David is
currently the Senior Independent Director of Electra, and will
stand down from the Electra Board prior to Admission. David also
holds non-executive director positions at Melrose Industries plc
and Dowgate Capital Limited and has previously held non-executive
director positions at BCA Marketplace plc and the Multifamily
Housing REIT plc. David has previously held senior roles at Aviva
Investors, having been Chief Investment Officer of Equities and
MultiAssets, and spent a number of years as Head of Investor
Relations at Ludgate Communications.
-- Gavin Manson , Non-Executive Director and a member of the
Audit and Risk Committee and the Remuneration Committee. Gavin is
Chief Financial and Operating Officer of Electra and will stay on
the Electra Board as it transitions to Unbound Group PLC. Gavin was
the Finance Director of Thomas Cook Group's tour operator and
hotels and resorts division between March 2013 and July 2016,
before which he was Finance Director at Premier Farnell Plc for 5
years. Gavin began his career with KPMG and is a chartered
accountant.
-- Andrew Blurton, Non-Executive Director, Chair the Audit and
Risk Committee and a member of the Nominations Committee and the
Remuneration Committee. Andrew is currently the Finance Director of
Advanced Living Limited. Andrew also holds positions as the Chair
of the governing body of Longacre School in Surrey and Chair of the
Liberty Defined Benefit Pensions Scheme. Previously, Andrew has
held positions as the Chief Financial Officer of MWB Group Plc,
Landmark Limited and as the chairman of Manroy Plc. Andrew has been
a Fellow of the Institute of Chartered Accountants in England &
Wales for over 38 years, having qualified as a Fellow in 1982.
-- Louise Stonier, Non-Executive Director, Chair the
Remuneration Committee and a member of the Audit and Risk Committee
and the Nominations Committee. Louise is currently Chief People and
Culture Officer of Pets at Home Group PLC. Louise joined Pets at
Home in 2004 as Group Legal Director and Company Secretary, and
also held the role of Chief People and Legal Officer and Company
Secretary from 2017 to 2019. Louise is also the Chair and a Trustee
of the charity, the Pets at Home Foundation, and a Remuneration and
ESG Committee member. Louise is a qualified solicitor having
graduated from Nottingham University with an LLB (Hons) Law and
started her legal career at CMS Cameron McKenna as a trainee
solicitor in 1997. After qualifying as a Corporate solicitor in
1999, Louise later moved to DLA Piper LLP and held the role of
associate in the Corporate Team.
-- Jane Bednall, Non-Executive Director and a member of the
Audit and Risk Committee, the Nominations Committee and the
Remuneration Committee. Jane is currently a Non-Executive Director
of DFS Furniture Plc. She has served previously as a Non-Executive
Director of EI Group, the UK's largest pub company, and of Smart
Energy GB, a role elected by the Retail Energy Industry. Jane has a
strong customer background spanning marketing, commercial, digital
and people leadership in FTSE 50 companies. During her executive
career, Jane spent over 30 years in global positions with British
Airways, InterContinental Hotels Group and Centrica and most
recently served as Chief Marketing Officer for Scottish and
Southern Energy (SSE) plc and as a Marketing Advisor in private
equity.
-- Robert Henry , General Counsel & Company Secretary, will
act as Company Secretary to the Board of Directors of Hostmore, as
well as a member of the Disclosure Committee. Robert joined Fridays
in April 2021 as Head of Legal. Prior to this, Robert was a Senior
Associate at Dentons, and has further private practice experience
from his time at Freshfields Bruckhaus Deringer. Robert's previous
in-house roles include Managing Legal Counsel at John Wood Group
plc and Senior Legal Counsel and Group Ethics Officer at both Amec
Foster Wheeler plc and AMEC plc.
Electra Private Equity PLC
Electra is a private equity investment trust which has been
listed on the London Stock Exchange since 1976. Electra's
investment objective is to follow a realisation strategy, which
aims to crystallise value for shareholders, through balancing the
timing of returning cash to shareholders with maximisation of
value. Since 1st October 2016, Electra has distributed over GBP2
billion to shareholders through ordinary dividends, special
dividends and share buybacks.
Hostmore
Hostmore is a growing hospitality business with its current
operations focused on the American-themed casual dining brand,
'Fridays', and the cocktail-led bar and restaurant brand,
'63rd+1st'. While Fridays has been trading for over three decades
in the UK, Hostmore was established in 2021 to provide a platform
for the development of hospitality brands under the leadership of
an experienced management team that has a track record of building
businesses in the hospitality and leisure sectors. Hostmore's
businesses are defined by their iconic brand experience and vibrant
heritage. As of June 2021, Hostmore operated 87 restaurants in the
United Kingdom and Jersey, a majority of which are located in high
footfall locations, including retail parks, shopping centres and
city centres. Hostmore is exploring opportunities with TGI
Friday's, Inc., the franchisor of Fridays, to expand its existing
brands into new franchise territories and is seeking to add rapidly
growing, early-stage businesses to its portfolio of complementary
hospitality brands, as well as to extend its offering in other
experience-led, leisure concepts.
FURTHER INFORMATION
HSBC Bank plc ("HSBC"), which is authorised by the Prudential
Regulation Authority and regulated in the United Kingdom by the
Financial Conduct Authority and the Prudential Regulation
Authority, is acting as financial adviser to Electra Private Equity
PLC and no one else in connection with the matters described in
this Announcement and will not be responsible to anyone other than
Electra Private Equity PLC for providing the protections afforded
to clients of HSBC, or for providing advice in connection with the
matters referred to herein. Neither HSBC nor any of its group
undertakings or affiliates owes or accepts any duty, liability or
responsibility whatsoever (whether direct or indirect, whether in
contract, in tort, under statute or otherwise) to any person who is
not a client of HSBC in connection with this Announcement or any
matter referred to herein.
Numis Securities Limited ("Numis"), which is authorised and
regulated by the Financial Conduct Authority, is acting as
financial adviser to Electra Private Equity PLC and no one else in
connection with the matters described in this Announcement and will
not be responsible to anyone other than Electra Private Equity PLC
for providing the protections afforded to clients of Numis, or for
providing advice in connection with the matters referred to herein.
Neither Numis nor any of its group undertakings or affiliates owes
or accepts any duty, liability or responsibility whatsoever
(whether direct or indirect, whether in contract, in tort, under
statute or otherwise) to any person who is not a client of Numis in
connection with this Announcement or any matter referred to
herein.
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