ELECTRIC STAR LTD

Hospitality

Funds Requested

£43,000.00

Offered so far

£0.00

Loan term

24 MONTHS

Auction Closed

2014-06-24

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About the Business

Company Name: ELECTRIC STAR LTD Company Number: 06204404
Business Type: Hospitality Years Trading: 6-10 years
Business Location: LONDON

About the Risk

Risk rating

B

Default rate

7.10%

Bad debt rate

5.84%

About the Security

Security Offered:

All Assets Debenture - Fixed and floating charge created over all assets of applicant company

Est. Equity: 0.00

Personal Guarantee - PG from [name of director(s)]PG from director and majority shareholder

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Electric Star Ltd is the operator of three leasehold pubs, all of which are located within the heart of London, one in Bethnal Green (The Star of Bethnal Green), one in Kings Cross (The Star of Kings) and the other in Hackney Downs (The Star of Hackney Downs). The company has been trading for over 6 years first opening The Star of Bethnal Green in December 2007, then The Star of Kings in 2010 soon followed by The Star by Hackney Downs. All 3 units are now well established and making healthy profits.

Rob 'Star' Hives (Managing Director) runs each establishment with the ethos (in his own words) 'With each venue we try to create a space that we would want to frequent ourselves with the right mix of great entertainment, quality food and a superb drinks selection that can be enjoyed in a relaxed and unpretentious environment.'

Local brewers provide draught and bottled beers. There are also strong wines and spirits offered to reflect the tastes of the target consumer group. All 3 establishments serve food, allocating street vendors a residency to provide cultured food (Kome LA Street Food, Randy's Wing Bar & Mario's Pizza). Rob wants to build on this idea with the Jackdaw & Star, and is actively looking for local pop-up street food traders, to allow the establishment to have a guaranteed revenue stream without the cost of running a kitchen.

Rob has over 15 years in the hospitality and leisure sector, specialising in club nights. Having worked in London and abroad (Ibiza & Croatia) both promoting and curating club nights & festivals.

Read more

Loan Offers

What is the loan for?

Rob is looking to take on a new lease at The Jackdaw and Star (currently trading as The Jackdaw and Stump). The lease will be a 20 year free of tie lease starting in May 2014. Rob has negotiated the first month free of charge and will be looking to open the pub in June 2014.

The loan will be used to cover the costs of the refurbishment. Rob is looking to run the pub along a similar model as the 3 other establishments & requires £40,000 towards the total refurbishment cost of £105,000. The remainder of the funds will come from: Electric Star Limited, personal funds & East London Small Business Centre (A London based, non profit support agency which provides finance for start ups).

The design of the bar will be overseen by experienced local designer Lady Ray, who designed the previous pubs. She will employ local artists, furniture makers and painters to ensure that the pub looks unique and highlights the feature details of such an iconic building. The pub has a large outside area which is a luxury in London. There will be good reasons for customers to come to the pub every day of the week, with highlights including: a pub quiz, cocktail night, Sunday Roasts, DJ’s, food offers, etc.

Why consider investing?

Since the first purchase of a run down gig venue, Robs refreshing approach has enabled him to transform it into a successful, modern entertainment space. Replicating this formula with a further 2 units, Rob now has 3 established units in the centre of London with a forecast turnover of 2 Million pounds for this year.

Security

The Loan is to be secured against a Personal Guarantee, an All Assets Debenture as well as a Cross Corporate Guarantee. The Director has an estimate Net Worth of £128k. This is based primarily on equity in a property of est. value £220k with approx. £135k equity.

The Cross Corporate Guarantee will be between Electric Star Kingscross Limited and Electric Star Hackney Downs Limited.

DateAmountCapitalInterestReceived
25/07/2014£2,089.22£1,544.19£545.03
25/08/2014£2,089.22£1,563.77£525.45
25/09/2014£2,089.22£1,583.59£505.63
25/10/2014£2,089.22£1,603.66£485.56
25/11/2014£2,089.22£1,623.99£465.23
25/12/2014£2,089.22£1,644.57£444.65
25/01/2015£2,089.22£1,665.41£423.81
25/02/2015£2,089.22£1,686.52£402.70
25/03/2015£2,089.22£1,707.90£381.32
25/04/2015£2,089.22£1,729.55£359.67
25/05/2015£2,089.22£1,751.47£337.75
25/06/2015£2,089.22£1,773.67£315.55
25/07/2015£2,089.22£1,796.15£293.07
25/08/2015£2,089.22£1,818.92£270.30
25/09/2015£2,089.22£1,841.97£247.25
25/10/2015£2,089.22£1,865.32£223.90
25/11/2015£2,089.22£1,888.96£200.26
25/12/2015£2,089.22£1,912.90£176.32
25/01/2016£2,089.22£1,937.15£152.07
25/02/2016£2,089.22£1,961.70£127.52
25/03/2016£2,089.22£1,986.57£102.65
25/04/2016£2,089.22£2,011.75£77.47
25/05/2016£2,089.22£2,037.25£51.97
25/06/2016£2,089.22£2,063.07£26.15
Total:£43,000.00£7,141.28