New Management Agreement

RNS Number:6768S
Honeycombe Leisure PLC
01 December 2003



1st December 2003


                             HONEYCOMBE LEISURE PLC

            New Management Agreement with Great English Pub Company

                   New relationship and beer supply agreement
                           with Scottish & Newcastle


      Placing of 1,750,000 new Ordinary Shares at a price of 65p per share


Honeycombe Leisure PLC ("Honeycombe" or "the Company"), the North West based pub
company, is pleased to announce that the Company has exchanged heads of terms
for a management agreement with the Great English Pub Company ("GEPC") to manage
all 6 of GEPC's sites, which operate under the Ma Hubbards concept.


The management agreement is for 10 years, with an option to purchase after Year
4, and it will be immediately earnings enhancing.


Scottish & Newcastle ("S&N"), have agreed to be the main beer supplier and have
voiced their endorsement and support of this agreement and of the Ma Hubbards
concept.  S&N have indicated their willingness to bring together their own
finance and capital capability with the retailing skills of Honeycombe, in an
on-going drive to develop the Ma Hubbards concept.


Ma Hubbards is a value for money dining concept geographically situated within
Honeycombe's existing footprint, with a combined turnover of circa #3.5 million.
The concept has proved a successful formula and Honeycombe will retain the
Intellectual Property rights to the concept and any franchise merchandise.


In order to refurbish the Ma Hubbards sites, to take advantage of future
opportunities and to augment the Company's existing working capital facilities,
the Company is pleased to announce that Charles Stanley & Co Limited has placed
1,750,000 new ordinary shares of 1 pence each with both new and existing
institutional investors to raise #1,137,500 before expenses.


The shares were placed at 65p per share and the Placing represents 5.9% of the
existing issued share capital of the Company.


The new ordinary shares will rank pari passu with the existing ordinary shares
of the Company.  Application will be made for the new ordinary shares to be
admitted to trading on the Alternative Investment Market and dealings are
expected to commence on 4 December 2003.


Sandy Anderson, Chairman of Honeycombe Leisure plc, commented:


We are delighted to have established a new relationship with both GEPC and with
S&N, which are significant milestones in the development of our Management
Services business.  Ma Hubbards has proved a successful concept and it is a
vehicle onto which Honeycombe can bolt further management contracts.  The
agreement establishes Honeycombe as a management team of choice for managed
houses in the North of England, and we look forward to working with GEPC, S&N
and with other large and small operators in the profitable management of their
pub assets.


"We are also very pleased with the continuing support Honeycombe has received
from our existing and new investors.  The placing will provide the company with
the ability to fund our further expansion and it will ensure that Honeycombe is
well placed to take advantage of opportunities, as and when they arise."

                                    - ends -


Enquiries to:

Honeycombe Leisure PLC

James Baer/Bryan Wardman                               Tel: [phone]

Joint Chief Executives


Charles Stanley & Co Ltd

Richard Thompson                                       Tel: [phone]



Holborn

Tarquin Edwards/Chris Steele                           Tel: [phone]

                      This information is provided by RNS
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