Hutton Collins invests in Tiger Tiger owner Novus Leisure

Posted on: 30 July 2012

Hutton Collins Partners LLP (Hutton Collins), a leading provider of preferred capital, has backed the management of Novus Leisure (Novus), the operator of 52 primarily London-based premium bars, in a deal worth £100m. Hutton Collins has invested alongside LGV Capital (LGV), supporting the existing CEO Steve Richards. Non-Executive Chairman John Kelly will also remain with the business.

 

Hutton Collins and LGV will support Novus’ strategy to double its central London portfolio over the next three years, enhancing the Group’s market-leading position in the premium bar London market, across brands including Tiger Tiger and Balls Brothers. In the medium term Novus will also look to expand outside its

 

Novus is performing strongly, and in the year to 30 June 2012 saw revenue growth of 25.5% and profit growth of 51%. Like-for-like sales for the year, totalling 37 sites, were up 11.3%, or 21% on a two-year basis.

 

Growth has been driven by Novus’ sophisticated and state-of-the-art booking system and a strong performance from new sites including the acquired Balls Brothers estate. Profit has been further enhanced by focusing on high-margin events, expanding premium drinks ranges and extended trading hours.

 

Graham Hutton, Hutton Collins, said:

“Although Hutton Collins has not invested in this specific sector before, we have a depth of knowledge in the closely related dining sector, having previously made successful investments in Pizza Express and Loch Fyne, and having significant continuing investments in Cafe Nero and Wagamama. When investing we look for a differentiated product, strong growth prospects and a high performing management team, Novus ticks all those boxes and we’re looking forward to helping the company to grow.”

 

Steve Richards, CEO of Novus, commented:

“Novus has a resilient model that has served it well over the years. Our focus and investment in our pre-booked system has given us the ability to take market share and deliver predictable, high-quality earnings. These attributes have resulted in keen interest by the private equity community to invest in the next stage of Novus’ development and in LGV and Hutton Collins we have secured investors who have an enviable record of backing successful businesses in the leisure sector. We really look forward to working with them over the next few years and to maximise the growth potential of Novus Leisure.”

 

Bill Priestley, Managing Director, LGV Capital said:

“We are delighted to have completed this acquisition. Novus has one of the best collection of bars and venues in the UK, which, together with its website, www.latenightlondon.co.uk has enabled it to outperform its market and peer group for some years. We are backing a first-class management team, led by Steve Richards, and look forward to developing the business by growing the estate through acquisitions.”

 

Zolfo Cooper advised Hutton Collins, NM Rothschild advised Novus and Deloitte advised LGV.

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