At a glance
- Bow Street Group, formerly Tasty, raised £9.25m through a conditional share placement to invest in existing operations and acquire new restaurant brands.
- The group plans to make four to six acquisitions of scalable restaurant businesses over the next three years, focusing on high-quality, value-for-money offerings.
- David Page, with previous leadership roles at Fulham Shore and Pizza Express, has been appointed as executive chairman, and Nick Wong as CFO.
- The acquisition strategy includes enhancing the existing estate, investing in the Wildwood and dim t brands, and upgrading technology.
- The restructuring plan earlier this year, which included closing several restaurants, has led to a return to profitability for the company.
Tasty has raised funds via a conditional placing of and subscription for new ordinary shares, at a price of 0.5p per share, with the funds to be used to invest in the group’s existing restaurants and operations as well as the acquisition of other brands. Its new strategy includes plans to make four to six acquisitions ‘of scalable restaurant businesses’ over the first three years.
As part of the move, the group has changed its name to Bow Street Group with David Page, who was executive chairman of Fulham Shore and CEO and chairman of Pizza Express, appointed as executive chairman and Nick Wong, former finance director at Fulham Shore, appointed to the board as CFO.
The company is also undertaking a retail offer to raise up to an additional £1m via the issue of retail offer shares to existing retail shareholders as well as new ones at an issue price of 0.58p per share.
It was revealed last month that Tasty had held talks with Page over a deal that would see him join the business and raise new funding.
“We are highly confident that the strengthened executive team, together with a cash injection, will be transformative to the business and all its stakeholders,” says chief executive officer Jonny Plant.
“In David and Nick, we are proposing to bring on board two highly experienced and successful restaurant operators, with strong track records of driving growth and shareholder value through both organic and inorganic opportunities.
“Whilst over recent years Tasty has not been immune to the pressures impacting across the casual dining sector, the fundraising will enable us to invest in our estate, improve our operations and technology, and identify opportunities for acquisitions. With a proposed new name, new plan, and new future, this promises to be the start of an exciting new chapter for the Group.”
Bow Street Group and has also conditionally agreed to acquire Ventnor Bay, a private cash shell founded by Page to make investments in the hospitality sector, for around £200,000.
“We have a clear plan for the Group which involves enhancing and refurbishing the existing estate, investing in the Wildwood and dim t brands, upgrading technology, and delivering acquisitions of high-quality and scalable restaurant businesses,” says Page.
“With many successful smaller restaurant businesses - typically with 2 to approximately 15 sites - finding it difficult to raise financing, the Bow Street Group will be a highly attractive platform for exciting brands, offering structural benefits of scale, operational synergies, and attractive incentivisation plans for entrepreneurial management teams.
“We aspire to deliver four to six acquisitions over the first three years with a focus on high-quality, great value for money offerings with the potential to scale across the UK. Along with Nick, I am excited to join the Group and deliver our growth strategy to generate value for the Group’s shareholders.”
In May this year, Tasty reported a return to profit following a restructuring plan that led to the closure of 15 Wildwood restaurants and one dim t restaurant, alongside three sublet and two non-trading sites. The plan also included a £750,000 loan, later converted to equity, and a time-to-pay agreement with HMRC.
