Hotel Chocolat Group PLC Repayment of debt (0473Q)

TIDMHOTC

RNS Number : 0473Q

Hotel Chocolat Group PLC

04 June 2018

4 June 2018

Hotel Chocolat Group plc

("Hotel Chocolat", the "Company" or the "Group")

Repayment of debt

Hotel Chocolat Group plc, a premium British chocolatier and omni-channel retailer, today announces the repayment of GBP6.4m of debt borrowed from its customers in the form of "Chocolate Bonds".

In 2010 and 2014, the Chocolate Tasting Club PLC, a subsidiary of the Group, issued two bonds which paid a return in the form of luxury boxes of chocolate or Hotel Chocolat Gift Cards. The bond proceeds were invested in capital projects that supported the growth of the company and developed cocoa sustainability projects in St Lucia and Ghana. At inception, the net cash proceeds received for these bonds were recognised as a liability. Each year the cost value of the chocolates was recognised as an interest expense.

The bond proceeds have contributed to:

 
      --   The creation of 600 jobs in the UK 
      --   New store openings in the UK and Ireland 
      --   Capital investment in manufacturing in the UK 
      --   Increased support for cocoa growers in Saint Lucia and Ghana 
      --   Sustainability projects including the creation of four model farms that supply disease-resistant 
            cocoa seedlings and demonstrate best practice cocoa growing techniques to improve yields and 
            farm incomes 
      --   A fully operational community medical centre in Osuben, Ghana 
 

The bonds were repayable by the company without notice.

The company would like to thank the Bondholders for the important role they have played in the growth and development of Hotel Chocolat. The ongoing growth of the business has now increased operating cash generation to the extent that the Board believes the continuation of the above growth and sustainability projects can now be funded using the Group's available working capital.

Angus Thirlwell, Co-founder and Chief Executive Officer of Hotel Chocolat, said: "Thanks to the support of our amazing Chocolate Bond-holders, we were able to invest in ethical cocoa, British manufacturing, create hundreds of jobs and then repay them in full, as planned."

For further information:

 
                                                  + 44 (0) 
 Hotel Chocolat Group plc c/o Citigate        20 7638 9571 
 Angus Thirlwell, Co-founder and Chief 
  Executive Officer 
 Peter Harris, Co-founder and Development 
  Director 
 Matt Pritchard, Chief Financial Officer 
 
 Citigate Dewe Rogerson - Financial               + 44 (0) 
  PR                                          20 7638 9571 
 Simon Rigby 
 Angharad Couch 
 Ellen Wilton 
 
 Liberum Capital Limited - Nominated              + 44 (0) 
  Advisor and Broker                          20 3100 2222 
 Clayton Bush 
 Jill Li 
 

Notes to Editors:

Hotel Chocolat is a premium British chocolatier with a strong and distinctive brand. The business was founded in 1993 by Angus Thirlwell and Peter Harris and has traded under the Hotel Chocolat brand since 2003. The Group sells its products online and through a network of stores in the UK and abroad. The Group has a cocoa plantation and eco-hotel in Saint Lucia, offering complete cocoa immersion thorough tree-to-bar experiences and wellness treatments. The Group also has a flagship restaurant and cocoa roastery in London's Borough Market: Rabot 1745. The Group was admitted to trading on AIM in 2016.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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June 04, 2018 02:00 ET (06:00 GMT)