Rose Bowl misses target

Rose Bowl, the sports, health and catering venture created out of the cash-strapped Hampshire County Cricket Club, has raised just £2.75 million out of a target £7 million in its private fundraising at £7 per share.

However, Matrix Corporate Finance, adviser on the offer (which closed on 1 August), insists the company has no reason to be downhearted.

The Elderstreet Millennium Venture Capital Trust has put in another £500,000 through loan notes, convertible into shares at £7. More importantly, Rod Bransgrove, the entrepreneur who mounted the original Hampshire CCC rescue operation and masterminded the Rose Bowl deal, is committed to investing £2-3.4 million in November under a call option with the company.

It seems that tax reasons prevent Bransgrove from investing sooner, but he is committed to putting in the money at that time. It will mean total funding of £5.2-6.6 million this time around.

The original bout of fundraising emanated from the sale of Hampshire’s historic Northlands Road ground in Southampton city centre – the proceeds of which were bolstered by a £7.2 million Lottery grant. The latest cash was needed to complete the lavish new ground’s development and moves into other ventures.

As well as expanding into golf courses, catering, health and fitness, Rose Bowl intends to exploit the development potential of land next to Hampshire’s Rose Bowl ground in Southampton.

After losing £473,522 in the year to last October on turnover of £2.7 million, the company has projected operating profits of £400,000 this year, on £5.6 million turnover. This is expected to rise to £780,000 on £6.7 million by 2004.

Rose Bowl hopes to float on Aim within 12 months of this fundraising.

[12/9/02]