Capital duo set to play it again
The founders of the Capital Pub Company are already planning a sequel to the blockbusting venture that has now raised a total of £14.3m through an Enterprise Investment Schemes (EIS).
The cash sum is thought to be a record amount for a pub-based EIS and is just £700,000 short of the government-imposed ceiling.
David Bruce and Clive Watson founded Capital nearly two years ago. They completed the first tranche of fundraising 12 months ago, raising £7.9m. It recently completed the second round of funding, raising £6.4m - 73 per cent of which came from existing shareholders.
The duo, who both have a notable track record in the industry, now aim to launch another pub company in a similar vein.
Operationally, the two companies would be entwined but with separate, ringfenced funds. "If something is successful, why not do it again?" said Mr Bruce. "The chemistry and synergy is good and our staff are happy. It would almost be churlish not to do it again."
Capital now owns nine freeholds across central London. The company has focused on solid wet-led businesses. "I think people are fed up with brands," said Mr Bruce, chief executive. "We have concentrated on buying cracking pubs and and plan to buy a total of 20."
The business now has 565 private shareholders.
Mr Bruce originally founded the Firkin concept which he sold to Midsummer Leisure for £6.6m. He went to work for Grovesnor Inns where he was responsible for the roll-out of Slug & Lettuce, later bought by SFI.
Meanwhile finance director Mr Watson was part of the team that floated Regent Inns, operator of Walkabout. He also helped to build the Tup chain of London pubs, which was later sold to Massive.
A string of companies from the pub industry, including Regent Inns, have been launched through such schemes. Fulham-based Geronimo Inns are also involved in an EIS pub company - Tomahawk Inns.
Companies set up through an EIS offer investors a tax shelter for profits from other investments. The aim is to encourage entrepreneurial investment and ventures must contain an element of risk.
Directors must provide some form of exit for investors after three years. This could come through a flotation or trade sale.
Related articles:
Capital to raise a further £8.8m (11 February 2002)
The Capital Pub Company raises £8m (23 November 2001)
