Fridays IPO plan 'on track'
Electra announced its intention to demerge the brands and for the shares in Hostmore to be admitted to the LSE Main Market back in May.
The process is set 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' and fledgling New York-inspired bar and restaurant concept 63rd+1st.
The management team is led by Robert B. Cook as chief executive officer, and Alan Clark as chief financial officer.
In a trading update for Hostmore, Electra reported that over the 16 week period since the resumption of restricted indoor dining on 17 May, like-for-like growth vs 2019 was on average up 11.8%.
In the seven weeks since the further reduction of Covid-19 restrictions on 19 July this like-for-like 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 was reported to reflect 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 £36.4m at the end of August from £46.0m at the end of December 2020.
Cash generated from operation over the three complete months since reopening, of June to August, has been £12.5m reflecting a 91% conversion of EBITDA.
"We are delighted with the continued strong performance of our two brands, Fridays and 63rd+1st," says Cook.
"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."
The Board of Directors of Hostmore will include Neil Johnson, chairman and chair of the nominations committee; David Lis, senior independent director; and Gavin Manson, non-executive director. The board will also be joined by three newly appointed independent non-executive directors: Andrew Blurton, Louise Stonier, and Jane Bednall.
“We are pleased to have assembled a strong board to lead Hostmore as a newly listed group in the hospitality and leisure sectors," says Johnson.
"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.”
