The pub group founded with a former Merrill Lynch investment banker has endured widening losses after you have hit by costs associated with a refinancing.
Hawthorn Leisure, which owns 312 pubs, saw pre-tax losses hit £8.9m in 2016 from £5.8m the last year mainly due to what it really referred to as exceptional costs from the refinancing of their debt.
The audience stated the £89.5m debt owed towards the shareholders of their parent continues to be substituted with a combination of a financial institution loan, a repayment-in-kind loan as well as an inter-company loan with parent Hawthorn Leisure Holdings which the expense associated with this refinancing have been £3.5m.
But the organization said the refinancing is anticipated to “provide significant savings in finance costs and improve cash levels, which provides management possibilities to re-purchase the estate and also be the company through future acquisitions”.
Hawthorn makes its money by collecting rents from the leased and tenanted estate in addition to selling drinks to the pubs, most of which it manages directly. Group sales rose 12pc to £41.5m.
Noah Bulkin, an old Merrill Lynch and Lazard banker, founded Hawthorn Leisure in 2014 as he bought 275 pubs from Greene King and 88 from R&L, the pub portfolio which formerly belonged to Robert Tchenguiz’s property estate.
Mr Bulkin, an Oxford College alumnus, resigned like a director of Hawthorn Leisure Holdings in May but has emerged at Punch Taverns like a director. Mr Bulkin’s LinkedIn profile states he’s now a non-executive director at Punch.
The previous investment banker’s May Capital still maintains a stake in Hawthorn but additionally supported Patron Capital’s acquisition of Punch and also the subsequent transaction which saw Heineken undertake roughly 1,900 Punch sites.
Mr Bulkin is another director at Vine Acquisitions, the entity setup by Patron Capital to complete the Punch deal, suggesting he’ll remain using the Patron-owned side of Punch instead of going to Heineken.