Monday 19 February 2007
Specialist investment management company, Close Investments Limited, announces the Offers for Subscription of up to 8,000,000 shares in The Close Imperial Pub Company PLC. The Company will seek to achieve capital growth through the acquisition and management of a portfolio of freehold and long-leasehold public houses primarily located in Central and Southern England. The Company will seek to acquire public houses where there is specific scope to develop the trade and grow the business over a 3-5 year term. The Company intends to operate as a qualifying Enterprise Investment Scheme (EIS).
The Company will look to raise money from private investors who are attracted by the offering. Investment in an EIS may offer certain tax advantages, although tax treatment will depend on individual circumstances of client, including:
- Capital Gains Tax Deferral: No limit on deferral of gains realised on the disposal of other assets
- Income Tax Relief: Income tax relief of 20% can be claimed by individual investors on investment in an EIS of up to £400,000 in a tax year
- Inheritance Tax Mitigation: Subject to certain conditions, shares in an EIS qualify for 100% Business Property Relief after 2 years ownership, removing their value from an estate for IHT calculation purposes
- Loss Relief: If EIS shares are sold at a loss those losses can be offset against other capital gains or income1
- Capital Gains Tax Free: No tax on capital gains is made on the disposal of shares in an EIS qualifying company.
The Company will seek to generate through its investments, a target return of £1.20 per share over a period of 4 – 5 years, however no guarantee can be given that this level of return will be attained. It is not intended to return any income or capital to investors for a period of at least 3 years and it may be difficult to dispose of shares during the investment term.
Close Investments has a proven track record in managing property and tax efficient investment funds and will be working alongside a management team that is highly experienced in the UK public house market. Oriental International, which is owned and managed by award winning public house operator Tony Carson, will be responsible for the day to day operational management of the Company. The public houses will be operated under Oriental International’s two established Eat Your Heart Out concepts, Gastro Destination Dining and Bistro-Quality Suburban Local.
The UK public house market is a well established and mature sector comprised of around 60,000 public houses. In recent years the sector has undergone a process of consolidation, however, demand for freehold public houses remains strong with further growth and consolidation predicted for 2007. The maturity of this market has created opportunities for those public houses that are able to differentiate themselves in terms of experience, style, price and service. Considered in parallel to the growth of the dining out market in the UK an opportunity has been created for quality food-led public houses.
Commenting, Chief Executive of The Close Imperial Pub Company PLC, Tony Carson said:
“Our award winning track record combined with a proven concept makes The Close Imperial Pub Company PLC a very exciting investment opportunity"
Pierre Clarke, Director of Close Investments, added:
"We have assembled an experienced management team who will focus on acquiring and developing a portfolio of food-led public houses to capitalise on the fast growing demand for gastro pubs, particularly in Central and Southern England. The Close Imperial Pub Company PLC is the first in a planned series of companies investing in public houses and seeking to qualify as an EIS sponsored by Close Investments and managed by Oriental International.”
For copies of the Prospectus and Application Form for The Close Imperial Pub Company PLC:
-ends -
Please see notes to editors attached.
Press enquiries:
Matthew Brown, Close Investments Limited Tel: 020 7426 4012
Jo Stonier, Quill Communications Tel: 020 7758 2236
Notes to editors:
The Close Imperial Pub Company PLC - Management Team
Close Investments will be working alongside a management team that is highly experienced in the UK pub market. Oriental International will be responsible for the day to day management of the Company and the key personnel include:
- Tony Carson (51), Chief Executive – who was founder and managing director of Taipan Taverns Limited which established the Jim Thompson’s Oriental Bar Restaurant Bazaar chain. Tony has previously won Allied Domecq’s “Entrepreneur of the Year” in 1998, the Evening Standard’s “Pub of the Year” in 1998 award and Pub Food awards “Ethnic Pub of the Year” in 2000;
- Kris Gumbrell (39), Chief Operating Officer – who is currently an operations director at Greene King PLC;
The Company has also appointed two experienced non-executive directors:
- Mark Crowther (38), non-executive director – is director of on-trade sales at Carlsberg UK Limited; and
- Richard Agnew (53), non-executive Chairman – a former director of Discovery Inns and now a licensed premises property consultant.
In addition, Michael Hughes (31), a divisional director at Close Investments Limited, will be a non-executive director of the Company.
Close Investments Limited
Close Investments Limited is a subsidiary of Close Brothers Group plc.
Founded in 1878, Close Brothers is an independent merchant bank and was listed on the London Stock Exchange in 1984 and is now amongst the top 200 listed companies in the UK.
Close Brothers have four operating divisions; asset management, corporate finance, securities and banking and employs over 2500 people, principally in the British Isles and also in Continental Europe.
Close Asset Management has £8.2* billion of funds under management. This division focuses on the two areas of private clients and funds. Included in the fund side of the business there is Close Investments.
Close Investments has a broad product range covering three main areas, multi manager, property and specialist funds for retail and institutional investors.
Close Investments products include:
- open & closed ended property funds
- open ended investment companies
- investments trusts
- inheritance tax mitigation products
- generalist and AIM Venture Capital Trusts
- UK smaller company and AIM investments
- specialist technology, life sciences & fixed income funds
Close Investments currently has £3.5bn^ under management
Close Investments Open Ended Funds are available on the following platforms: Norwich Union, Selestia, Transact, Lifetime, Hargreaves Lansdown.
Close Investments Limited is a member of the Close Investments Group and uses the trading name Close Investments. The other members of the Close Investments Group are Close TEAMS Limited and Fortune Asset Management Limited.
Close Investments Limited is authorised and regulated by the Financial Services Authority (FRN 148682).
Past performance is not a guide to future performance. The value of investments and the income from them may fall as well as rise and is not guaranteed. An investor may not get back the original amount invested.
Risk warnings:
This communication is for information purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any shares in The Close Imperial Pub Company PLC (the "Company"). No such offer of solicitation will be made except pursuant to the Company's prospectus (the "Prospectus"). Before making a decision to invest in the Company, potential investors are advised to read the Prospectus and related application forms carefully and the highlighted risks therein, and to consult their legal, accountant, business, investment, pension, tax or other advisers. The information in this communication is qualified in its entirety by reference to the more detailed discussion contained in the Prospectus. Any person subscribing for shares in the Company must be able to bear the risks associated with the Company and must meet the Company's suitability requirements. This communication is being issued and has been approved by Close Investments Limited which is authorised and regulated by the Financial Services Authority. The value of investments can fall as well as rise and an investor may not get back the original amount invested. There is no market for the shares and as such share will not be readily realisable. Past performance is not a guide to future performance. If the Company ceases to carry on business of owning and operating managed public houses, this could prejudice its qualifying status under the EIS. Close Investments Limited does not provide advice to, or ensure suitability for, customers in respect of any of its investment products, so that all customers are deemed to be execution only customers. Thus it is reasonable for Close Investments Limited to believe that customers do not expect advice on the merits of an investment transaction from Close Investments Limited. An authorised investment adviser should be consulted in all circumstances where advice on an investment product is required. Although Close Investments Limited may have an informed opinion on such matters, it cannot comment on the individual circumstances of each investor. There can be no guarantee that the investment objectives will be met.