Strategic Investment
Cube8.com PLC
23 November 2000
Cube8.com takes stake in Room Service (UK) Limited
Cube8.com plc, the AIM-quoted Technology, Media and Telecoms incubation and
investment company which also provides consulting and technology services,
announces today that it has taken a strategic stake in Room Service (UK)
Limited. Cube8 has agreed to issue 2 million new shares valued at
approximately £75,000 (based on the closing mid-market price of 3.75p on 21
November 2000) in return for a 2.5% stake in Room Service.
Established in 1992, Room Service Deliveries (RSD), which is the trading name
of Room Service (UK) Limited, allows both residential and corporate clients
to order food from the menus of specific restaurants in London, which is then
delivered within one hour. RSD has a loyal customer base of over 150,000
people, more than 150 restaurant partners, and is feeding 12,000-15,000 people
in London every week. An internet ordering capability was added in early 1998.
RSD also has a full service catering division which provides a wide range of
business meals, from sandwich platters to silver-service functions, and a
drinks delivery division, offering a wide range of wines, champagnes, bottled
beers, spirits, soft drinks and waters via a unique wine license and a mobile
stockroom.
Other Room Service projects include the imminent launch of a brand new food
delivery concept developed in conjunction with a national hotel group, a new
delivery concept for the retail/fashion sectors, and an in-house Dry Cleaning
service. The company has also launched 'Tipple', an upmarket drinks/cocktail
delivery service/off-license located at the new County Hall development in
Central London.
Commenting on the investment, Brian Hindson, CEO of Cube8, said: 'Room Service
is a well established company with over £5m annual turnover and a solid well
developed business to expand from. It has a strong brand and loyal customer
base in the London market and is in an excellent position to expand the range
of products and services, as well as its geographic coverage. In return for a
small but strategic equity stake, Cube8 will be able to add significant value
and impetus to the development and expansion of Room Service, not only through
synergies with other companies in our portfolio, but also through the skills
and contacts of our people.'
Ronnie Pearl, Co-founder and Chairman of Room Service Deliveries said: 'Our
relationship with Cube8 provides us with strategic opportunities in the areas
of marketing, technology and logistics. There are excellent synergies between
us and several of the Cube8 portfolio companies. Room Service is well placed
to expand on its existing services, and also to profitably operate in the
'one-hour-fulfilment' segment which several other companies have recently
withdrawn from.'
In addition to Cube8's investment, Dolphin Capital Limited, a company of which
Tim Dean-Smith (Executive Chairman of Cube8.com plc) is a Director, has
invested £75,000 in cash for a 2.5% stake in Room Service (UK) Limited.
www.cube8.com www.roomservice.co.uk
For further information please look at the investor relations website at
www.cube8.com or please contact:
Cube8.com plc Tel: 020 7243 2000
Tim Dean-Smith, Executive Chairman
E-mail: timds@cube8.com
Room Service (UK) Limited Tel: 020 7644 6666
Ronnie Pearl, Chairman
E-mail: ronniepearl@roomservice.co.uk
Issued by:
Bankside Consultants Limited Tel: 020 7220 7477
Henry Harrison-Topham / Julian Bosdet
E-mail: henry@bankside.co.uk / julian@bankside.co.uk
Note to editors:
Cube8 is a Technology, Media and Telecoms investment and incubation company
that provides financial and intellectual capital to accelerate start-up and
early-stage internet businesses.
The Company's operations have 3 main areas of focus, these being:
(i) Investment
(ii) Consultancy and Agency Services
(iii) Networking and Fundraising
The Company's shares started trading on the Alternative Investment Market of
the London Stock Exchange ('AIM') on 28th February 2000.