Geronimo Inns set to double in size

Private-equity firm Penta Capital has taken a controlling stake in Geronimo Inns, the multiple lessee founded by Rupert and Joanna Clevely that is known for its high-quality food offer.

Penta will invest up to £10m in the business whilst Barclays Bank, its existing lender, is committing new facilities of up to £14.5m. 

The funding package will allow Geronimo to double the size of the existing estate over the next three years through a mixture of freehold and leasehold sites - it currently has 15 pubs.

The acquisition strategy will be focused on London, the south east and high density footfall sites, including airports and railway stations.

Geronimo has already agreed to open new sites at Heathrow Terminal Three and St Pancras International, which will benefit from the launch of the new Eurostar service in 2007.

Expansion is expected to see sales increase from £14m - the forecast for the year ending June 2007 - to £30m.

Geronimo chief executive Rupert Clevely said: "Our mission has always been to create a high-quality estate of pubs serving great food. This exciting partnership with Penta and Barclays will allow us to accelerate our growth."

Geronimo had a turnover of £9.18m for the year to 30 June 2006 and made a pre-tax profit of £264,265 with directors emoluments of £433,197 during the year. Turnover the previous year was £8.68m, with a pre-tax profit of £187,645.

Its Heathrow airport outlet, which trades under a different company, Geronimo Airports, had a turnover of £1.9m for the same period and had a pre-tax profit of £85,320.

Geronimo is buying three freehold pubs from Tomahawk, the Enteprise Investment Scheme pubco, for which it supplies management services and owns a 3.9% stake.