BurningNight Group has launched a £3.5m fundraise through peer-to-peer lending platform Crowdstacker, to aid the next stage of its expansion.
The group, which operates multiple concept bars under the same roof in four cities across the UK, wants to use the money to open in Birmingham and Nottingham and to refurbish its debut site in Leeds.
The group is offering a fixed interest rate of 7% paid quarterly over a three-year term.
BurningNight recorded turnover in the year to 31 July up 5% to £17.2m, with operating profit up 20% to £597,723.
In July the group completed a new investment of equity, with £1.5m of loans replaced with new preference shares, increasing the shareholders’ funds to over £3.5m.
The prospectus for the scheme reveals that its Manchester bar is the most profitable, making an EBITDA contribution of £391,000. It is projecting recurring EBITDA of £438,000 for its Nottingham site, where heads of terms have been agreed with the landlord. For the former Brannigans bar in Birmingham, the group is projecting recurring EBITDA of £500,000.
Chief executive Allan Harper said: “Our bars are hugely successful and we now want to expand across more key cities around the UK. To do this, we wanted to choose a way of financing the expansion that would allow our existing loyal customers as well as new potential customers and investors to participate in our growth.”