Nexum Leisure, the nightclub company led by Paul Kinsey, is to seek an Initial Public Offering (IPO) if stock market conditions return to normal.
The company, which is 70% owned by Lloyds TSB, has its sites set on expanding to 20 nightclubs - it has bought six sites in the last 18 months and has four more in the pipeline. Last week, it opened its Synergy nightclub in Warrington, a £5.5m investment including freehold costs.
The company will have spent a total of £15m acquiring and fitting out nightclubs within 18 months by the time it has completed on the additional four venues. It has a revolving line of debt funding provided by Lloyds to allow it to pick up more sites. Most recently, it has spent £4m buying Tramps in Worcester and another 1,400-capacity venue in Torquay.
Kinsey said: "We've seen real terms like-for-like growth in the past 18 months - and a growth in real terms spend-per-head. We've been looking at an IPO in the past few months. "We're seeing a 65% return on our investment year-on-year. "There's no desperate need to rush (an IPO) on the market - this is a time when there are deals to be done and we'll wait for the (stock) market to return. We look at a two-year payback on openings - we target high quality but at a lower cost than our competitors."
Kinsey said that Nexum's management structure allowed the company to expand to running 35 venues with the addition of only three additional members of staff. Nexum's flagship venue is Syndicate in Blackpool.