Urban Village Pub Company is negotiating further funding that could see it raise at least £5m to help it towards its 15-20 pub goal within the next two to three years, MCA has learnt.

Ian Grundy, managing director of the business, which has seven pubs in London and the Home Counties, told MCA it was currently talking to Rockpool which backed it with c£10m in the first two raises.

It only had enough left from those funds to probably open one more pub, he said.

The business was also open to funding from other sources “with Rockpool’s knowledge”, said Grundy. “How much we raise depends on the funder. Maybe another £5m or it may be a larger one.”

Two more sites are currently in legals – one in Hampshire and the other in the East End of London, within a couple of miles of its existing Walthamstow site. Grundy said he expected these to complete within the next 10 weeks.

They follow the recent acquisition of a pub in Southampton bought from a private landlord and one in Portsmouth from Admiral Taverns. The Southampton pub has been renamed The Mayflower Village and the Portsmouth one The Guildhall Village.

Grundy said once the group grew to 15-20 sites it would either look at a trade sale or a bigger investor coming in “to potentially double in size” at that point.

Like-for-like sales climbed 13.6% in the last financial year and eight weeks into the new financial year, like for likes were currently at 17.2%.

The group, which formed two years ago, operates its pubs as managed houses. Six are freehold and one is leasehold.