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Snoozebox Holdings Plc
("Snoozebox", the "Group" or the "Company")
First Day of Dealings
Snoozebox, a new and exciting portable, scalable hotel and temporary accommodation concept providing on-site accommodation, is pleased to announce that Admission and dealings in its Ordinary Shares commence at 8.00am today on the AIM Market of the London Stock Exchange. Following Admission, dealings will commence under the TIDM identifier ZZZ.
· Snoozebox has placed a total of 30,000,000ordinary shares with institutional investors at a Placing Price of 40p per share raising £12 million (gross) for the Company
· The market capitalisation of Snoozebox on Admission at the Placing Price is approximately £20.5 million
· The number of ordinary shares in issue on Admission is 51,295,000
· Snoozebox will use the net proceeds of the Placing to provide investment and working capital to fund growth
Commenting on the flotation, Robert Breare, Chief Executive of Snoozebox said:
"We are delighted to be starting life as a public company today and we want to welcome all new shareholders to the Company. Net new monies raised of approximately £11m will provide funds to enable us to expand the Group's business to meet the burgeoning demand for our innovative new product."
1 May 2012
Today via College Hill
Robert Breare, Chief Executive
Thereafter 0845 092 0174
Chris Upton, Finance Director
020 7459 3600
020 7457 2020
Further information on Snoozebox Holdings Plc:
Snoozebox provides comfortable and secure accommodation which is portable and does not require mains services such as power, water and waste drainage. Both installation and removal of a 300 room unit can be achieved within three to four days on natural terrain and without need for foundations or site preparation.
Snoozebox's products are aimed primarily at outdoor events and temporary staff accommodation. In the Company's identified markets, sites are often located in places with limited convenient alternatives and without access to mains services and Snoozebox aims to provide on-site accommodation where possible.
Snoozebox aims to provide two types of accommodation:
· the Events product is hotel accommodation which is stylish and has wide-ranging amenities in its rooms. It is intended to supply both the sizeable year-round Events market and other markets for temporary hotel accommodation, for instance where conventional hotel capacity needs to be increased to meet demand;
· the Contrax product is accommodation which, while still comfortable and secure, is necessarily more functional due to the market it intends to supply. This comprises both the private sector, such as airports, film locations and civil engineering sites and the public sector such as the military, the Home Office and local government.
While initially concentrating on the UK, the Directors believe that Snoozebox's products have significant potential for expansion in Europe and further afield. For opportunities beyond Europe, the Directors would expect to access the international market on a franchise or joint venture basis.
History and Background
The Snoozebox product was originally conceived by Robert Breare in June 2010. Detailed design was
completed in February 2011 and the Subsidiary was incorporated on 1 March 2011. Thereafter, discussions began between the Subsidiary and the British Racing Drivers Club and Silverstone Circuits Ltd. An agreement was signed on 17 May 2011 between Silverstone Circuits Ltd. and the Company to set up the first Snoozebox hotel unit (40 rooms) in time for the British Grand Prix at Silverstone in July 2011.
This high-profile event has provided a platform for the successful launch of Snoozebox and this, together with the simultaneous launch of a sales and marketing campaign, has resulted in a build-up of momentum for the Events product and a strong level of interest and demand for 2012 and beyond.
Both of Snoozebox's products are based on ISO steel shipping containers with 9'6" height. The use of standard steel containers permits normal movement by road, rail or ship without the need for any special arrangements. They can be loaded and unloaded easily and can be stacked without requiring supporting structures. Ground level containers are located on RSJ chairs with adjustable pads so that a Snoozebox hotel can be located on soft and undulating ground if hard standing is not available. The fact that the containers do not need to be dismantled allows stylish design and quality of fittings within a durable structure.
The Events product normally comprises four rooms per container. Each room is fitted out to a high standard with modern fixtures and a stylish décor. Sound and heat insulation has been used to provide comfort and privacy and each room has its own air-conditioning. Each room has a double bed together with in most cases a separate single bed, flat screen TV, WI-FI and room safe. Each room also has its own en suite wet room comprising a power shower, W.C. and wash basin.
The Contrax product will have a lower specification and can be customised to suit a particular customer's specific requirements.
All Snoozebox products are designed to be entirely independent of mains services: power, water and waste drainage. For every 80 rooms, there is a Mother Unit (MU) and provision of power through a generator. The MU has tanks which supply hot and cold water and store waste extracted using vacuum technology. An 80 room hotel requires one fresh water tanker and one waste extraction tanker every day. However, Snoozebox can easily switch to mains services where available.
A Snoozebox hotel provides normal reception services, daily housekeeping and a 24 hour duty manager. Snoozebox has established that customers enjoy the opportunity to socialise with other guests at the hotel, regardless of the proximity of an event's facilities. Consequently, Snoozebox will usually provide a marquee or similar facility for its guests where food and beverage is available. Provision of catering services will generally be outsourced.
Snoozebox sources its new, standard specification ISO containers from the Far East. Delivery to the UK typically takes 6 weeks for shipment although estimated order times will vary. The containers will then be fitted out to Snoozebox's specification in the UK incorporating specific functional requirements with high-quality and stylish décor.
Snoozebox currently has 40 rooms in stock and ready for deployment. It has a further 240 rooms in the process of being manufactured which are expected to be ready for delivery by 28 April 2012 in time for the Queens Diamond Jubilee pageant in the grounds of Windsor Great Park.
Snoozebox has selected and entered into discussions with preferred national and local contractors to fulfil its haulage and requirements for cranes as well as power generation, water delivery and waste extraction where required. Snoozebox products are designed to be transported on standard articulated trailers and 300-room hotel accommodation can be installed and commissioned on site within three to four days. The integral strength of the Snoozebox product allows the accommodation to be stacked enabling more accommodation per site than with single storey buildings.
For most events in the UK, Snoozebox will qualify as a temporary structure for the purposes of UK planning laws on the basis that the structure will be in place for 28 days or less. Planning permission for such events should therefore not be required.
For events of longer than 28 days duration planning permission is likely to be required and will be applied for on a site by site basis. Specific planning consent may be required in certain cases in respect of advertising on the Snoozeboxes.
For the Snoozebox Events product, the Directors have identified over 150 annual events in the UK outdoor leisure market. These comprise sporting events such as motor racing, horseracing and eventing, golf, tennis and sailing; music festivals; county shows; cultural events such as the Edinburgh Festival and commercial events such as product launches. In addition to annual events, the UK also hosts significant one-off high profile events such as, in 2012, the Queen's Diamond Jubilee and the Olympic Games; the Commonwealth Games and Ryder Cup in 2014; and the RugbyWorld Cup in 2015.
All of Snoozebox's revenue has derived from the UK but Snoozebox has also identified similar market opportunities in nearby Continental Europe. Very few events have hotel accommodation at or inside their grounds and few have sufficient hotel accommodation in the immediately surrounding area, whereas there is usually high demand for such accommodation from events organisers, sponsors, VIPs, participants and visitors alike. Snoozebox is well placed to supply these markets particularly given its ability to operate without mains services.
In addition, the Events product can be used by conventional hotels when they require additional capacity during seasonal peak periods.
The Contrax product is intended to supply personnel accommodation that is required for relatively long periods of time. Typical examples identified by the Directors include military deployments and civilian construction projects in places with insufficient accommodation resources for the numbers of individuals deployed.
The Directors believe that similar market opportunities for Snoozebox products in the UK exist in many countries worldwide.
The Directors' opinion is that competition for the outdoor leisure market is provided by conventional hotels and Bed and Breakfast facilities, by "glamping" (glamorous camping), motor homes, caravans and conventional camping. In addition, portable accommodation is available largely using portacabin technology.
Hotels and Bed and Breakfast facilities are often at some distance from the event itself and frequently raise their prices during the event period. Glamping, motor homes, caravans and conventional camping do not typically provide the same level of amenities, comfort and security as Snoozebox.
Portable cabin-style accommodation is sometimes available. It uses systems, however, which generally require disassembly on each occasion and transportation on a flat pack basis. This prevents the maintenance of stylish and quality décor and amenities. Moreover, such systems cannot be stacked without expensive additional gantries and this, combined with the internal size of each cabin results in an inflexible layout and large footprint in comparison to a Snoozebox installation. Generally such accommodation also requires mains electricity, water and sewage to be provided, which limits the locations where it may be used. As a result, Snoozebox is much more efficient in the transportation, assembly and disassembly of its products.
This combination of characteristics makes Snoozebox competitive on pricing, level of comfort and amenities. Furthermore, its compact nature, and the ability to stack, enables it to provide a far greater capacity of accommodation on a site of comparable size.
The principal advantage of the Contrax product is the ease of transportation and durability of the product, together with its independence from mains supply. Competition for this product is typically met by the cabin technology as above and a combination of purpose-built housing and commuting from places where housing is available. The Directors believe the ability to provide more comfortable on-site staff accommodation will result in greater efficiency through increased staff retention and reduced logistics costs.
Snoozebox has filed an international patent application for the grant of patent rights in the principal
jurisdictions where Snoozebox intends to market and sell its services, including Europe, the United States and Australia. The patent application relates to a temporary accommodation system utilising shipping containers demountably connected to one or more core service modules.
Robert Breare's vision was to create a product that provided event goers with an accommodation option that combined the comfort of a hotel and the convenience of on-site location, where few or no such options exist.
Snoozebox's strategy is to capitalise on the "first mover advantage" which the Directors believe Snoozebox has and maximise the potential of Snoozebox products for the markets that it has identified. The Directors' goal is for Snoozebox to become the first choice for event organisers and guests and create the dominant brand in the market.
Snoozebox will manage its own operations in the UK and mainland Europe with its experienced Board
Outside the UK and mainland Europe, the Directors intend to operate via franchise and joint venture
arrangements with local partners.
Current Trading and Prospects
The Subsidiary was incorporated on 1 March 2011 and commissioned the construction of the first Snoozebox unit shortly thereafter. The first Snoozebox rooms were installed at Silverstone in time for the F1 British Grand Prix event from 7 to 10 July 2011. Snoozebox successfully let all available rooms for this event.
The Company is in negotiations with a number of event organisers to provide Snoozebox products during 2012. A brief overview of these events is set out below:
a) Queen's Diamond Jubilee: provision of between 256 and 324 rooms at Windsor Home Park in May 2012;
b) Isle of Man: provision of 240 rooms for the Isle of Man TT race at Nobles Park in Douglas in May and June 2012;
c) Download Festival: provision of 80 rooms at the Download Festival in Donington in June 2012;
d) Hop Farm: provision of up to 160 rooms for the Hop Farm Music Festival in Paddock Wood, Kent in June and July 2012.
e) Goodwood: provision of 144 rooms on the Goodwood Estate for the Festival of Speed in June 2012 and for the Goodwood Revival in September 2012.
f) Silverstone: provision of up to 240 rooms. 200 rooms have so far been released and sold for the Formula 1 Santander Grand Prix weekend in July 2012;
g) London Olympics: provision of up to 320 rooms; and
h) Karting Championships: provision of 80 rooms for the World Karting Championships in Grantham during July and August 2012.
To date, the Company has ordered 240 rooms from Pickstock which are expected to be ready for use by May 2012. This order, along with the existing 40 rooms, is expected to be sufficient for the first event this calendar year, being the Queen's Diamond Jubilee in May 2012. The Company intends to place a further order on receipt of the funds received at IPO to take total capacity from 256 to 400 rooms.
Robert Roddick Ackrill Breare, 59, Chief Executive
Robert has been involved in the hotel and hospitality industry for approximately 25 years. He was a founder and CEO of Arcadian International plc, whose businesses included the Malmaison and Great Eastern hotels. He has worked at a senior level in the hospitality sector, both as an executive and a consultant, for nineteen years. More recently he was Chairman of the Scotsman Hotel Group and of the Individual Restaurant Company plc. He is currently non-executive Chairman of Ted Baker plc.
Chris George Upton, 60, Finance Director
Chris has worked in senior financial position in the hospitality sector for 18 years. He was Finance Director of Arcadian International plc for seven years. Before that he held senior positions in finance and IT at a number of commodity trading companies including E D & F Man. Ltd. He is a non executive Director of Pod Food Limited and is deputy Chairman of the Hospitality Professionals Association (HOSPA).
Reasons for Admission
The Directors of Snoozebox believe that Admission will assist Snoozebox in its development by:
• providing investment and working capital to fund growth;
• raising its profile amongst investors and customers; and
• capitalising on the Company's first mover advantage through accelerated growth.
This announcement is issued by, and is the sole responsibility of, Snoozebox in connection with the proposed placing of Ordinary Shares and the proposed application for admission of the whole of the ordinary share capital of the Company, issued and to be issued, to trading on the AIM Market of London Stock Exchange plc.
Panmure Gordon (UK) Limited is acting for the Company and no one else in connection with the Placing and Admission and will not be responsible to any other person for providing the protections afforded to its clients, or for providing advice in relation to the Placing, Admission or in relation to the contents of this announcement or any other transaction, arrangement or matter referred to herein.
The information in this announcement, which is for background purposes only, is preliminary in nature and is subject to change. No representation or warranty express or implied is made by the Company or Panmure Gordon (UK) Limited as to the fairness, accuracy or completeness of the information contained herein and no reliance should be placed upon it. Application for shares in the Company may be made only on the basis of the Admission Document which was published today and the risk factors and other information set out in the Admission Document. A copy of the Admission Document is available on the Company's website (www.snoozebox.com) and from the offices of Davenport Lyons, 30 Old Burlington Street, London W1S 2NL.
This announcement does not constitute an offer to sell or issue, or the solicitation of an offer to subscribe for or buy, Ordinary Shares to or from any person in any jurisdiction to whom it is unlawful to make such offer or solicitation. In particular, this announcement is not for distribution in or into the United States of America, Canada, Japan, the Republic of South Africa, Australia or New Zealand. The issue of the Ordinary Shares has not been, and will not be, registered under the applicable securities laws of the United States of America, Canada, Australia, Japan or the Republic of South Africa and the Ordinary Shares may not be offered or sold directly or indirectly within the United States of America, Canada, Australia, Japan or the Republic of South Africa, or to, or for the account or benefit of, any persons within the United States of America, Canada, Japan, Australia or the Republic of South Africa.
This announcement may contain forward-looking statements. These statements relate to the Company's future prospects, developments and business strategies. Forward looking statements are identified by their use of terms and phrases such as "belief", "could", "would", "envisage", "estimate", "intend", "may", "plan", "will", "should" or the negative of those, variations or comparable expressions, including references to assumptions. Any such forward looking statements in this announcement are based on current expectations and intentions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by these statements.
Capitalised terms within this announcement have the same meaning as within the Admission Document.