First Day of Dealings

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This announcement is an advertisement and not a prospectus or an admission document and does not constitute a recommendation regarding any securities. Any investment decision must be made solely on the basis of the admission document dated 20 November 2013 in connection with the admission of the ordinary share capital of Eclectic Bar Group plc to trading on AIM.

This communication is directed only at (i) persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 ("Order") (investment professionals) or (ii) persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations etc) (all such persons referred to above being "Relevant Persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with Relevant Persons.

28 November 2013

Eclectic Bar Group plc

("Eclectic", the "Company" or the "Group")

First Day of Dealings

Eclectic, one of the leading operators of premium bars in the UK, is pleased to announce that Admission takes place and dealings in its Ordinary Shares commence at 8 a.m. today on the AIM market of the London Stock Exchange, under the ticker symbol BAR.

Summary

• The market capitalisation of Eclectic on Admission at the Placing Price of 160p will be approximately £20.6 million.

• Eclectic has successfully completed a fundraising of £15.0 million.

• The Company has placed a total of 6,562,500 new Ordinary Shares raising approximately £10.5 million (gross) for the Company.

• In addition, a further 2,835,861 Ordinary Shares held by the Group's principal shareholder, Avanti Capital plc ("Avanti"), will be sold at the Placing Price pursuant to the Placing for approximately £4.5 million enabling Avanti to sell down completely its shareholding in the Company.

• Eclectic will use the net proceeds of the Placing to repay a shareholder loan owed to Avanti of approximately £7.3 million with surplus net funds raised of approximately £1.8 million to be used to fund organic growth prospects and new site acquisition opportunities.

• The number of Ordinary Shares in issue on Admission is 12,862,500.

• Panmure Gordon acted as Nominated Adviser and Broker to the Group.

Reuben Harley, Chief Executive Officer of Eclectic, commented:

"We are delighted to be starting life as a public Company today and welcome all our new shareholders.

We have proven brands and an experienced management team which together with our revised capital structure and growth funds we will be able to implement our well established strategy. We plan to grow the business through a combination of organic growth and new site development and take advantage of a fragmented marketplace and market opportunity".

For further information, please contact:

Important Notice

Defined terms used in this announcement have the same meaning as set out in the Company's admission document dated 20 November 2013.

Panmure Gordon (UK) Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company and no-one else in connection with this announcement, the Placing and Admission. Panmure Gordon (UK) Limited will not regard any other person as its client in relation to the matters described in this announcement and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the Placing and Admission, the contents of this announcement or any transaction, arrangement or other matter referred to herein.

Group Overview

Eclectic is a leading operator of premium bars in the UK. Eclectic's portfolio comprises 20 venues located in major towns and cities, predominantly targeting a customer base of sophisticated students midweek and stylish over-21s and young professionals at weekends. The Company focuses on delivering added value for its customers, with premium product ranges, high-quality music and entertainment, and a commitment to high service levels and standards.

The Group trades across its estate under a variety of brands, including Embargo 59, Lola Lo, Sakura, Po Na Na and Fez Club. These brands have proven themselves to be consistently cash-generative, continuing to trade well even since the start of the global financial crisis of 2008. Eclectic has established a stable financial track record over the past five years with turnover in the year ended 30 June 2013 of £21.2 million, representing a two year CAGR of 16.9 per cent., and Group EBITDA of £3.0 million, representing a two year CAGR of 16.7 per cent.

The Group's management team, led by Reuben Harley, who has over 25 years' experience of working in the UK pub and bar industry, is implementing a strategy to grow the business through the development of new sites either under the Company's existing brands or using brands which can be successfully maintained, as well as business acquisitions as appropriate opportunities present themselves.

The bar market in the UK remains fragmented, and the Company is presented with a significant number of opportunities for acquisitions of both new sites and businesses. The management team has demonstrated its ability to achieve successful openings of new venues, on average exceeding its target returns.

The key strengths of Eclectic are:

• it targets a premium customer base;

• gross margin of approximately 80 per cent.;

• premium product ranges, high-quality music and entertainment, and commitment to service and standards;

• management team with a track record of delivering operational and financial improvements and value-enhancing acquisitions;

• national geographic spread, primarily in university towns which, in management's view, combine an active night time economy and demographics to support premium-positioned bars;

• capacities averaging approximately 400 per site;

• detailed framework of operational and financial systems and disciplines throughout the business; and

• a clear development and training programme for the people within the business.

Directors' Biographies 

The biographical details of the directors upon Admission are as follows:

Reuben Harley - Chief Executive Officer

Reuben has worked in the UK pub and bar industry for over 25 years. His career started at Grand Metropolitan plc before becoming an area manager at Greenalls Inns in the late 1990s. Between 1998 and 2004 he worked at SFI Group PLC, where he moved through the roles of Operations Manager, Regional Manager, Brand Manager of the Litten Tree brand in the South of England, subsequently Brand Manager nationally for the Bar Med brand and then Divisional Director responsible for the disposal division of 62 sites. Prior to joining Eclectic as CEO in June 2006 he was Business Development Director for The Nightclub Company.

John Smith - Chief Financial Officer

Since qualifying as a chartered accountant (ACA) with Touche Ross & Co in 1985 John has held a variety of senior finance roles. From Head of Finance at International Currency Exchange plc he then became Group Finance Director at Vision Express until it was sold to Grand Vision in 1997. After two years as Joint UK Managing Director of Vision Express post the acquisition he then became Finance Director of First Leisure Corporation plc in 1999, before becoming Chief Executive in 2003, and then Chief Executiveof The Nightclub Company which was created by the purchase of 22 nightclubs from the receiver of First Leisure. John became Finance Director of Eclectic Bars Limited in June 2006.

James 'Jim' Fallon - Non-Executive Chairman

Since 1994 Jim has worked almost exclusively within the leisure sector as a lender, adviser, owner, operator and most recently business consultant. Jim worked for Imperial Chemical Industries in electrical engineering for eight years prior to joining Midland Bank in 1991. He was at HSBC until 2002, latterly leading the leisure team, when he left to set up the consumer sector corporate finance advisory business McQueen Limited. He was specifically responsible for the leisure sector within McQueen as well as much of the day to day running of the business. Jim works as a consultant to a variety of UK leisure businesses through his company, Graybridge Solutions Limited. In addition he is Chairman of Newman Bars Ltd which owns and operates Lowlander Grand Café, a continental bar brasserie business in Covent Garden.

Clive Watson - Non-Executive Director

Clive qualified as a chartered accountant with Price Waterhouse in London in 1986 then joined the investment bank Manufacturers Hanover Limited where he spent three years. He joined Regent Inns plc as Finance Director and Company Secretary in 1990. Clive left Regent Inns plc in 1998 and co-founded Tup Inns Limited where he was responsible for financial and commercial matters as well as acquisitions. Clive was appointed in 2000 as Finance and Commercial Director of The Capital Pub Company PLC which was admitted to trading on AIM in 2007. In 2008 he was appointed Chief Executive and oversaw the sale to Greene King plc in 2011 for £93 million. He then set up The City Pub Company in 2012 under the Enterprise Investment Scheme which operates a portfolio of pubs in cities and large market towns in the south of England.

Placing Statistics