Yates Wine Lodges lowers price of flotation
Thursday 14 July 1994
Yates will raise pounds 10m placing 7 million shares at 140p each, a discount to the stock market prices of its nearest quoted rivals, Regent Inns and JD Wetherspoon. The price values Yates at pounds 54m.
Peter Dickson, managing director, said: 'We have taken the market conditions into account. We believe we have left something in the price for institutions.
'The key requirement is to widen our institutional shareholder base of five. We have had a lot of institutional interest and expect to have another 25 on board post-flotation.'
Yates is raising money to repay debts and to double the size of its retail outlets to 100 in the next six years. They are concentrated in the north-west, although there are also bars in Glasgow and London.
The cost of buying a freehold outlet, typically with 2,000 sq ft of selling space, is about pounds 200,000 with another pounds 550,000 to furnish in Yates' Victorian style. Each bar generates a return on investment of 20 per cent in its first year of opening. Six more outlets are under construction.
In the year to 27 March, the company lifted taxable profits from pounds 2.8m to pounds 3.4m on sales ahead from pounds 34.6m to pounds 42.9m.
Bottom Line, page 34
- 1 Video of Irish 'professional boxer' fighting Istanbul neighbourhood goes viral in Turkey
- 2 Novel Scarlett Johansson tried to ban, Grégoire Delacourt’s The First Thing You See, to be published in UK
- 3 A pint of water every day is the key to losing weight, scientists say
- 4 Russia 'accidentally reveals' number of its soldiers killed in eastern Ukraine
- 5 Carol Vorderman reveals she is 'covered in burns' after she fell off her treadmill while running naked
Dresden riots: Protesters in Germany attack refugee buses shouting 'foreigners out'
France train shooting: US soldiers speak of the moment they stopped gunman and 'beat him until he was unconscious'
Labour leadership: Jeremy Corbyn accused of 'deluding' young supporters with 'claptrap'
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith calls for urgent ESA overhaul as part of drive to cut down welfare costs
iJobs Money & Business
£13000 - £25000 per annum: Recruitment Genius: Would you like to be part of a ...
£20000 - £25000 per annum + competitive: SThree: Are you passionate about sale...
£25000 per annum + benefits: Ashdown Group: A large financial services company...
£20400 per annum: Ashdown Group: An established and highly reputable organisat...