Richoux, the 12-strong AIM-listed restaurant group, has announced it has raised £2m of new funding towards its expansion plans through a share subscription and confirmed that Ed Standring has joined its board as an executive director.
M&C Report revealed in January that Standring, who previously held management roles with ASK and the Spirit Group, had joined the group as managing director. He is working alongside Salvatore Diliberto, the company’s chief executive on the re-commencement of its openings programme.
Standring has been granted 500,000 options over ordinary shares in the company at a price of 9.025p.
The company announced that it had raised approximately £2m by way of a subscription of 25 million new shares at 8p per share, which gives the group a market capitalisation of approximately £7.4m.
The business operates four brands: Richoux, Dean’s Diner, Zippers and Villagio, and is currently in negotiations to acquire two new sites, one of which is intended to trade as a Villagio, the other as a Dean’s Diner.
In order to facilitate the re-commencement of new openings, it believed it was appropriate to raise further funds via the subscription to fund future site acquisitions and an opening program.
In August, the group reported an operating profit of £390k for the 28 weeks to 8 July, against a loss of £250k in the previous year, on the back of disposals of underperforming sites.
Group turnover increased to £5.14m (July 2011: £4.39m), while gross profit from continuing operations stood at £620k (July 2011: £30k).
During the period, it disposed of its underperforming restaurants in Barnet, High Wycombe, Slough and Basingstoke along with its freehold Central Kitchen property which gave rise to proceeds (after costs) of £920k.