Heartstone Inns banks £3m in new financing

Heartstone Inns, the Reading-based pubco founded earlier this year by industry veterans Stuart Hawthorn and James Birch, has raised £3m in a second round of private equity funding.

The latest finance, which brings Heartstone's investment cache to £4.5m, was provided by Halogen Holdings, which has a 49.99 per cent ownership stake in the pubco.

Heartstone's chief executive Stuart Hawthorn told thepublican.com​ the group was focused on acquiring between a dozen and 15 pubs during the next 18 months, ultimately building up to an estate of 30 pubs within five years. Heartstone currently has two pubs in the South West.

"We're not an enterprise investment scheme on a trolley dash for growth. Instead we'll look to buy food-led pubs that suit our criteria," he said.

Heartstone was looking for good quality properties that turned over between £500,000 and £1m net a year and where the food/wet split was approximately 60/40, he added.

Hawthorn said that despite being a private equity backed business the group was not fixated on a three to five year exit plan.

"Halogen are taking a flexible on the business and we're not wedded to a trade exit.

"We'll look at what our options are and see what the market is like in a few years' time," he said.

Heartstone's initial equity backing came from Bfm Partners, a privately owned fund management and investment company established by Andrew Haining and Robin Black, formerly partners of Botts & Company.

Lloyd Marshall and Edward Beale, both directors of Halogen Holdings, have been appointed to the board to represent the interests of Halogen alongside the founder directors.