Crowdstacker New Investment: BurningNight Loan, 7% p.a

By Iain Niblock | On September 4th, 2016

 

Crowdstacker has just launched its newest investment opportunity. The manual loan selection peer-to-peer lender has just cleared BurningNight Ltd for investment. The BurningNight Group, which owns a number of successful bars and clubs in England is expanding its portfolio of venues to include concept-based bars in specific English cities. The Group requires £3.5m, secured on assets, for a period of 3 years, returning 7% fixed annual interest. This investment can be held in the Crowdstacker Innovative Finance ISA (more below).

BurningNight Ltd Overview

BurningNight is the owner and manager of a group of bars and clubs across England. The Limited company has six subsidiaries, focused on large premises located in major cities such as, Leeds, Liverpool, Manchester and Cardiff. It is in these mass-populous locations where they operate their concept-based bars, which undertake different themes, attracting varied clientele at varied times in the week, thus maximising revenue generation throughout the entire week. Such bars include:

Bierkeller

These Bavarian themed “Bierkellers” adopt a distinctive theme, offering their client-base an experience of German beers served in steins, long oak benches and a traditional oompah band at the weekend. Popular during weekend nights ensuring bumper income.

Shooters Sports Bar

This sports centric venue is popular during mid-week nights and weekend afternoons, in-keeping with sporting events. The audio-visuals in the Shooters bars are second-to-none, with huge P4 HD LED video walls in each bar.

Around The World In 80 Beers

World beers and foods are served in the Around The World bar, which features old world décor, distressed wood and and vintage luggage to give an “old world feel”.

The Potting Shed

A bar and grill with a modern feel using almost everything that is reclaimed and/or upcycled. The bar focuses on offering artisanal all fresh produce, traditional pub food but in a gastro style.

BurningNight also operates its own group beer company that negotiates directly with the breweries to supply their own bars and a hand-full of external strategic partners. This drives the Group’s bottom-line profit.

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BurningNight Loan Proposal

BurningNight Ltd is looking for £3.5m to continue its already successful roll-out program of multi-branded concept bars in key cities around the UK. The funds will be used to open new bars in Nottingham and Birmingham together with a significant extension and full upgrade to the bar in Leeds, which was the original BurningNight concept bar.

Raise:  £3.5million

Term:  3 Years

Min. investment:  £500

Min. raise:  £350k*

Interest rate:  7% p.a

IFISA:  Eligible

Need more information about Crowdstacker, who facilitates the loan? Click below:

Visit Crowdstacker

BurningNight Loan Security

All Crowdstacker loans are secured on a borrower’s assets, which are held in an independent Security Trustee. This is no different for BurningNight Ltd.

BurningNight Ltd offers three levels of security:

1st level

The Security Trustee has received a first ranking debenture on BurningNight’s assets. Burning Night’s assets can be valued by looking at the value of its current and future leased and freehold pubs and their current and future profitability.

2nd level

Six of BurningNight’s principal subsidiaries will provide cross guarantees in favour of the Security Trustee where they guarantee BurningNight’s liabilities to the Security Trustee.

3rd level

Two of BurningNight’s principal subsidiaries, Cornertrack Limited and BurninNight (services) Limited, will each give the Security Trustee a first ranking debenture over its assets and business.

The BurningNight Group and subsidiaries have been profitable for each of their last 5 years of trading history, with turnover increasing to c£17m.

The Group Operating Profit for the year ended 31st July 2016 amounted to £597,723.

More about BurningNight security in the Information Brochure (p.18)

BurningNight Financials

The Group has had a successful financial year, with turnover increasing to £17.2million, EBITDA at bar level (operational) of £2.1million and £760k (after all administrative expenses).

In July 2016 the company completed a new investment of equity. £1.5million of loans were replaced with new preference shares. This has had the effect of increasing Shareholders Funds to over £3.5million.

Here are the BurningNight financials for Year Ended 31st July 2016:

BurningNight financials as displayed in BurningNight Loan Brochure – p.19

Crowdstacker Loan Default Procedures

In the event of a default, the Security Trustee can enforce the debenture over BurningNight and take control of the company bank accounts, with the aim to ensure that any free operating cash flow is used to repay Lenders (investors). The Security Trustee will also be entitled to enforce the cross guarantees and the debentures over the relevant subsidiaries in order to repay Lenders.

Crowdstacker has a 0% rate of bad-debt, meaning no investor has lost a penny to-date. This is not a guarantee of future performance, as there is always the risk you could lose money with a peer-to-peer investment.

BurningNight Loan Returns

As explained above, BurningNight Ltd requires £3.5million to expand their current offering in the Food & Drink industry within the UK.
Here are some key points of information regarding the returns you can expect as an investor:

Raise:  £3.5m

Term:  3 Years

Min. investment:  £500

Min. raise:  £350k*

Interest rate:  7% fixed annual interest

Interest paid:  Quarterly

IFISA, SSAS, SIPP:  Eligible

*The minimum raise ensures that the borrower can begin drawing down invested funds periodically. The min. raise must be achieved by the date prescribed on Crowdstacker before the company can begin drawing down.

Here are some examples of what you could be earning over the next three years:

Example earnings from a BurninNight loan as displayed in BurningNight Loan Brochure – p.23

Crowdstacker Innovative Finance ISA

With the new Innovative Finance ISA (IFISA) launched April 6th you can shelter tax earned on peer-to-peer investments from the tax-man. For more information on the IFISA, click here.

Crowdstacker is one of a select few peer-to-peer lending UK platforms currently capable of offering the IFISA. You can subscribe your annual allowance or transfer any amount of funds from past ISAs and reap the 7% interest from the BurningNight loan, without paying tax!

More about Crowdstacker IFISA in the Information Brochure (p.25)

(Visit Crowdstacker and select BurningNight to invest in)

BurningNight Rewards

Aside from the high-yield annual return, you can expect to receive rewards for your investment. Here are some of BurningNight’s rewards on offer:

£2,500 invested (at least)

  • 1 Amazing Beer Suitcase of beers from around the world
  • 1 Beer Tasting Session hosted by staff in a BurningNight venue of your choice (Min 4 – Max group 8)
  • 1 Bronze Bierkeller Entertainment Complex Card – this gets you 5% off all food & drinks for 3 years

*You must use promo code BNIGHT10 to claim this reward

£5,000 invested (at least)

  • 1 Amazing Beer Suitcase of beers from around the world
  • 1 Beer Tasting Session hosted by staff in a BurningNight venue of your choice (Min 4 – Max group 8)
  • 1 Cocktail Masterclass Session hosted by staff in a BurningNight venue of your choice (Min 4 – Max group 8)
  • 1 Silver Bierkeller Entertainment Complex Card – this gets you 10% off all food & drinks for 3 years

*You must use promo code BNIGHT10 to claim this reward

£15,000 invested (at least)

  • 1 Amazing Beer Suitcase of beers from around the world
  • 1 Beer Tasting Session hosted by staff in a BurningNight venue of your choice (Min 4 – Max group 8)
  • 1 Cocktail Masterclass Session hosted by staff in a BurningNight venue your choice (Min 4 – Max group 8)
  • 1 Oompah Band Show Experience hosted by staff in a BurningNight venue of your choice (Max group 8 – subject to Friday)
  • 1 Gold Bierkeller Entertainment Complex Card – this gets you 20% off all food & drinks for 3 years

*You must use promo code BNIGHT10 to claim this reward

More about BurningNight rewards in the Information Brochure – including Platinum and Hero packages (p.26)

(Visit Crowdstacker and select BurningNight to invest in)

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