New corporate hospitality float

FORMER London Scottish rugby supremo Ric Yerbury, the driving force behind corporate hospitality vehicle Monkleigh, is to float the business on the Alternative Investment Market at the end of June.

Yerbury, chief executive of London Scottish rugby club from 1997 to March 1999 and chief executive of Embassy Property from 1994 to 1996, plans to raise £2.5m through the float, which Monkleigh will spend on targeted acquisitions in the event management and hospitality markets.

According to Yerbury, Monkleigh is in talks with seven possible targets, having whittled down a long list of potential candidates, and the first deal is likely to be a reverse takeover.

The corporate hospitality and event management markets are highly fragmented, consisting of a few large and many small operators. Yerbury said there was a good opportunity for a business planning to become a one-stop shop for a wide range of event management and hospitality services.

?We have a number of things in mind, we‘re looking at added value events, mainly in the corporate sector, where there is real demand for a company that can provide the broad range of client hospitality and staff team building activities,‘ he said.

He rejected suggestions that the business could be unduly exposed to a downturn in business confidence:

?The market has grown steadily, about 5.2% compound a year. Twenty years ago that might have been true but now hospitality and events are a very central way for companies to communicate with their clients. The market has been very robust and we‘re very confident of the outlook.‘

Also on the management team is Ray Pierce, former chief executive of the accountants Robson Rhodes and a one-time vice-president of consumer marketing at American Express - itself a major sponsor of numerous international spectator sports.

Investment in Monkleigh would qualify under the Enterprise Investment Scheme for income tax relief.