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BES plan to help old-time pubs

Toasting traditional drinking: A Smiles pub

AS THE Business Expansion Scheme moves into its last few months, a West Country brewery is doing an unusual thing - raising money for a real business, rather than for low-risk property schemes. Last year Ian Williams, 35, formerly with accountants Touche Ross, led a management buy out of Bristol-based Smiles Brewery, which brews traditional beer for traditional pubs with no juke boxes or fruit machines. Sales are now more than �3 million.

In June, the firm raised �750,000 through the BES to go towards buying pubs to sell Smiles beer. Two have already been bought. Smiles is now returning to the market, with another �750,000 issue through stockbrokers Rowan Dartington.

The return to investors is hoped to be 175p per 100p This is much higher than usual on the property schemes, reflecting the greater risk that goes with BES issues for trading companies.

Reproduced courtesy of Money Mail - 20th Oct 1993.