Bruce Taverns plan expansion and launch £20 million fundraiser
Bruce Taverns is to raise £20 million to fund a growth programme through acquisitions. The Edinburgh-based pub company, which owns 19 pubs around the city, is issuing a £20 million bond to fund its growth over the next few years.
The bonds will be traded on the NEX Exchange Growth Market under the name Bruce Pubs Plc, a subsidiary of the Bruce Group.
Founded in 1999 by Kevan Fullerton and Scott Piatkowski, the Bruce Group owns Royal Mile Tavern (pictured), George IV Bar, Whistlebinkies and La Belle Angele among others.
The group says it has experienced considerable growth in recent years and is seeking the investment to fund greater expansion. The bond will be secured on the venues that are acquired and will attract 7.2 per cent interest.
Said Kevan Fullerton, “We believe that the pub market currently offers excellent potential for growth and profitability and we have the scale, expertise, and knowledge of the market to expand substantially in a relatively short timescale.
“The £20 million bond will give us immediate access to substantial funds which will facilitate rapid growth. We will use this investment to quickly grow our group through multiple acquisitions within our existing market and further afield. The bond will offer investors an excellent opportunity to invest in a growing, profitable traditional market that is currently undergoing a resurgence.”
He continued, “Revenue in the UK pub market was estimated to have risen 0.8% to reach £18.1bn in 2018. An estimated 7.75bn pints were sold over the last year equating to 21.2m pints per day. Whilst the pub market has experienced some contraction in recent years many recent reports, including a recent MCA Insight analysis of the UK pub sector in 2018, have highlighted a substantial upturn in pub revenues with growth particularly in wet sales and among independent pub groups.”
over the next few years.