REAL EATING COMPANY CAFES LIMITED

Hospitality

Funds Requested

£80,000.00

Offered so far

£0.00

Loan term

48 MONTHS

Auction Closed

2015-04-07

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About the Business

Company Name: REAL EATING COMPANY CAFES LIMITED Company Number: 06497573
Business Type: Hospitality Years Trading: more than 10 years
Business Location: LEWES

About the Risk

Risk rating

B

Default rate

6.80%

Bad debt rate

5.58%

About the Security

Security Offered:

Personal Guarantee - PG from Kevin Harfield

Est. Equity: 0.00

Cross Corporate Guarantee - CCG from Real Eating Company Group Limited and Real Eating Company Restaurants Limited

Est. Equity: 0.00

Risk Indicators Identified:

Important Files

Who are we?

Visit Our Website

The Real Eating Company (REC) was founded by Helena Hudson in November 2004 as an independent high street alternative to national casual dining chains and coffee shop operators.

Helena moved to Brighton from London in 2001 with her family and quickly spotted the potential for a high-quality British casual dining café concept in the South East.

Following a successful advertising career in London, Helena decided to divert her business expertise, energy and funds into creating her own business from scratch.

REC focuses on bringing better quality food, drink and coffee with a British twist and independent feel to the High St. The majority of the food is prepared daily on-site. They have five sites in the South East – Lewes, Chichester, Horsham (x2) and Bournemouth. The REC’s core demographic is the 45/50+ age group – an affluent demographic in current locations, with strong discretionary spend.

Today, the Real Eating Company is a well-established business in the South East and has grown from one site to five. Helena’s entrepreneurial journey has been well-documented by the national and local media and the company has benefitted from extensive media coverage.

Read more

Loan Offers

What is the loan for?

REC is now looking to grow. The last year has seen strong sales and profit growth across the group and there is potential to expand into other market towns and cities in the South East. REC would like to raise funds to open new cafe sites. The cafe model (which currently operates in Chichester, Horsham and Bournemouth) is similar to a coffee shop model but includes a wider range of hot food and table service.

Why consider investing?

See the attached Funding Paper

The momentum in the business is continuing into 2015. Sales for the January period have increased 18% y-on-y on a like-for-like basis.

• Sales have grown consistently by increasing average spend (from £6.49 to £7.71 year to date) as well as enhancing the offer, introducing a more selective recruitment and training process and investing in back of house IT systems.

• REC benefits from an experienced management team – see management, 25/30+years sector experience and the very low (by industry standards) level of staff churn.

• Planning based upon strong financial reporting and controls is very detailed MI / key metrics are monitored weekly. Detailed P&L’s are produced every 4 weeks.

• There is a balanced mix of income streams – average drink 50%, food 50% across all sites.

• Labour costs are controlled by industry-standard software programme Fourth Hospitality. Labour costs are circa 30% cost base of sales.

• Rents average circa 11% of Sales

• Funding working capital through immediate cash collections is confirmed by fully swinging credit account/overdraft extremes

Notes

The holding company has cumulative losses in excess of £2million.

£236k is owed by group companies. These are inter-company balances that has built up over a number of the earl years as detailed in the funding paper (legacy debt). It is interest free and there are no repayment terms.

Security

The loan is to be secured by way of Personal Guarantee and Corporate guarantees from Real Eating Company Group Limited and Real Eating Company Restaurants Limited

The Directors have an estimate net worth of approximately £1.1m. This is based on ownership of a personal property and investment property of an approximate combined value of £3m and 100% equity in both properties.

DateAmountCapitalInterestReceived
08/05/2015£2,249.24£1,211.90£1,037.34
08/06/2015£2,249.24£1,227.62£1,021.62
08/07/2015£2,249.24£1,243.53£1,005.71
08/08/2015£2,249.24£1,259.66£989.58
08/09/2015£2,249.24£1,275.99£973.25
08/10/2015£2,249.24£1,292.54£956.70
08/11/2015£2,249.24£1,309.30£939.94
08/12/2015£2,249.24£1,326.27£922.97
08/01/2016£2,249.24£1,343.47£905.77
08/02/2016£2,249.24£1,360.89£888.35
08/03/2016£2,249.24£1,378.54£870.70
08/04/2016£2,249.24£1,396.41£852.83
08/05/2016£2,249.24£1,414.52£834.72
08/06/2016£2,249.24£1,432.86£816.38
08/07/2016£2,249.24£1,451.44£797.80
08/08/2016£2,249.24£1,470.26£778.98
08/09/2016£2,249.24£1,489.33£759.91
08/10/2016£2,249.24£1,508.64£740.60
08/11/2016£2,249.24£1,528.20£721.04
08/12/2016£2,249.24£1,548.02£701.22
08/01/2017£2,249.24£1,568.09£681.15
08/02/2017£2,249.24£1,588.42£660.82
08/03/2017£2,249.24£1,609.02£640.22
08/04/2017£48,382.74£47,763.38£619.35
08/05/2017£0.00£0.00£0.00
08/06/2017£0.00£0.00£0.00
08/07/2017£0.00£0.00£0.00
08/08/2017£0.00£0.00£0.00
08/09/2017£0.00£0.00£0.00
08/10/2017£0.00£0.00£0.00
08/11/2017£0.00£0.00£0.00
08/12/2017£0.00£0.00£0.00
08/01/2018£0.00£0.00£0.00
08/02/2018£0.00£0.00£0.00
08/03/2018£0.00£0.00£0.00
08/04/2018£0.00£0.00£0.00
08/05/2018£0.00£0.00£0.00
08/06/2018£0.00£0.00£0.00
08/07/2018£0.00£0.00£0.00
08/08/2018£0.00£0.00£0.00
08/09/2018£0.00£0.00£0.00
08/10/2018£0.00£0.00£0.00
08/11/2018£0.00£0.00£0.00
08/12/2018£0.00£0.00£0.00
08/01/2019£0.00£0.00£0.00
08/02/2019£0.00£0.00£0.00
08/03/2019£0.00£0.00£0.00
08/04/2019£0.00£0.00£0.00
Total:£79,998.30£20,116.95