Hostmore PLC, the hospitality company in the process of separating from Electra Private Equity (LSE:ELTA) PLC, said it expects the demerger to be completed and its shares to start trading on the London Stock Exchange on 2 November.
The company, which consists of the Fridays and 63rd+1st restaurant brands in the UK, said trading has been encouraging since indoor dining resumed in England in May.
“We are delighted to be announcing the intention to proceed with the demerger and listing which, subject to the approval of Electra shareholders, we expect to complete in early November,” commented Hostmore chief executive offer Robert B Cook.
“The demerger and listing of Hostmore leaves us well placed to continue to develop enduring value through our existing and future brands and we look forward to the future with excitement and confidence.”
Hostmore saw like-for-like (LFL) growth of 11% in the 20-week period since the resumption of restricted indoor dining in England on May 17 compared with the same period of pre-pandemic 2019. On a VAT adjusted basis, LFL trading when compared with 2019 fell 1%.
In the 11 weeks since the further relaxation of COVID-19 restrictions in England on 19 July, LFL growth was 12.1% compared with 2019, or 0.1% on a VAT adjusted basis.
The group said its sales have outperformed the market by 1.5% since 19 July.
Hostmore’s net debt, adjusted to include all COVID-19 related accruals, reduced to GBP36.4mln at the end of August 2021 from GBP46mln at the end of December 2020.
Meanwhile, cash generated from operations from June to August 2021 was GBP12.5mln.
Since 17 May, Hostmore has opened a new Fridays restaurant in Lincoln and 63rd+1st restaurants in Cobham and Glasgow. It plans to open a further 63rd+1st site in Harrogate in November.