Nurseries seek EIS backing

Two children’s day care companies have launched fundraisings, under the Enterprise Investment Scheme (EIS), to attract over £5 million each from investors keen to back ventures with significant freehold assets.

Nursery chain operator Nu Nu has already gleaned £5 million from investors in a series of fundraisings, promoted by Downing Corporate Finance (020-7411 4700). The company now owns six operating centres situated in more affluent areas of the Midlands and North West.

In addition Nu Nu has a further three nurseries – in Market Harborough, Shrewsbury and Wigan – currently under construction at an average build price of £1.2 million.

Chief executive Linda Knight is now seeking a further £6 million at an enhanced price of 120p. Knight says the plan is to increase the size of Nu Nu to between 15 and 20 sites by 2007 and then seek an exit 'either by selling the company or floating on AIM'.

Each nursery is built to take around 100 children and, with central costs already covered by the existing sites Knight adds that the 'profits [from new nurseries] should role straight through to the bottom line'.

Looking to raise £5 million in the same sector, meanwhile, is the Teather & Greenwood-sponsored ChildCare Corporation 7. Like its six predecessors the aim for ChildCare 7 is to use the cash raised to build and operate three or four purpose-built nurseries.

Chairman Alan Bentley plans to obtain sites in either the Midlands or South of England. Previous ChildCare schemes have established nurseries in Bedford, Taunton, Exeter and Torquay. Once again an exit is likely to come via an AIM float at some stage in around four year's time.

For further details of ChildCare 7 call Teathers on 020-7426 3204.

(16/03/04)