New World Trading Company (NWTC) has recently announced a £23m funding package for the roll-out of new sites less than 12 months after Graphite's £50m acquisition of the fast-growing pub and restaurant business in June 2016.
We are becoming a nation of casual diners and NWTC is capturing our increasing demand for high quality yet informal dining experiences. This trend has not been lost on investors, who have established a successful record in the bars and restaurants sector targeting businesses like NWTC which have the potential to scale and are offering on-trend formats like all day dining. Indeed, LDC, which invested £2.7m in NWTC in 2013, generated a 6.1x return when the business was sold last year.
NWTC has grown from a single site in 2011 to 16 outlets in key city and suburban sites. It operates under five brands – The Botanist, The Oast House, Smugglers Cove, The Trading House and The Club House – and employs close to 1,000 people. Each concept offers traditional cask and craft beers, innovative cocktails, an all-day menu of homemade food including the celebrated ‘hanging kebab’ and live music.
The finance package from NatWest, which includes a £4m capex facility, will help fund new openings and the employment of 200 extra staff. It is yet another vote of confidence in the burgeoning bar and restaurant sector, with Santander (Honest Burgers) and Oak North (LEON) also amongst those lenders with an appetite to support the roll-out of leading-edge concepts.
Unsurprisingly, NWTC is achieving significant revenue growth and we expect it to perform well in Catalyst's upcoming Leisure & Retail Fast 50.
Cheshire-based New World Trading Company, which operates 16 pubs across the country, has secured a £23m investment from NatWest. The finance package includes a £4m capital expenditure facility which will support the company’s ambitious expansion plans across the UK. NWTC, which was acquired by leading mid-market private equity specialist Graphite Capital for £50m earlier this year, opened seven new sites during the last financial year and following the investment, the company has also recently opened new venues in Sheffield and York. NWTC continues to expand across the country, and currently employs nearly 1,000 people. New sites scheduled to open in Birmingham, Didsbury, Manchester and Reading in the coming months will increase staff numbers by a further 200.