Electra Private Equity has confirmed plans to demerge its Fridays and 63rd+1st brands under a new parent company, Hostmore.
The firm had previously announced plans to demerge the brands earlier this year.
It is planned for the shares in Hostmore to be admitted to the main market of The London Stock Exchange, with the process “on track to conclude in the fourth quarter of this year”.
Subsequent to this, Electra will be renamed Unbound Group, 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, the American-themed casual dining brand, and 63rd+1st, a new city-based, cocktail-led bar and restaurant brand.
The management team of Hostmore will continue to be led by Robert Cook as chief executive officer and Alan Clark as chief financial officer.
Over the 16-week period since the resumption of restricted indoor dining on 17 May, the Hostmore brands reported like-for-like growth against 2019 averaging 11.8%. In the seven weeks since the further reduction of Covid-19 restrictions on 19 July, this growth averaged 15.2%.
Net debt, adjusted to include all Covid-related accruals, reduced to £36.4m at the end of August from £46m at the end of December 2020. Cash generated from operation over the three complete months since reopening, June to August, has been £12.5m reflecting a 91% conversion of earnings before interest, tax, depreciation and amortisation (EBITDA).
Robert B Cook, chief executive officer, said:”We are delighted with the continued strong performance of our two brands, Fridays and 63rd+1st.
“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.”
Neil Johnson, chairman of Electra, added: “We are pleased to have assembled a strong Board to lead Hostmore as a newly listed group in the hospitality and leisure sectors.
“With these new appointments we have brought together significant experience in governance, finance, people and consumer markets, together with relevant sector and