View more on these topics

Child&#39s play for Downing

Downing Corporate Finance is raising up to £6m for the Nu Nu enterprise investment scheme, formerly Downing Nurseries.

Under the original EIS offer in March 2002, Downing outsourced the management of the nurseries to Nu Nu, an experienced nursery operator. Nu Nu was later acquired by Downing and the EIS was renamed. The money raised under this share offer will be used to fund four new nurseries in 2004 and will help the company achieve its target of at least 15 nurseries by 2007.

The EIS has raised over £5m so far and currently operates six nurseries, which generated a combined income of £1.1m and a gross profit of £400,000 between January and September last year.
The new premises will mainly be freehold, which gives the EIS the security of asset backing. Long leasehold properties will also be considered in the absence of suitable freehold premises.

The success of this EIS depends upon continuing demand for childcare and the ability of the company to find suitable sites at the right price. It will draw heavily on the experience of chief executive Linda Knight, who has managed the opening of over 20 nurseries during the last 13 years,

Knight and her team will visit possible sites and will consider factors such as the level of competition for sites, the location, building costs and the fee levels the nurseries are likely to generate.

The company&#39s strategy is to fund start-up losses with profits from the nurseries they already have, combined with the asset-backed nature of the investment makes this a good investment for people seeking EIS tax breaks. However, the Childcare Corporation operates in the same area and has a longer track record than the Nu Nu EIS.

Recommended

Downing Corporate Finance – Nu Nu

Type: Enterprise investment scheme Aim: Growth by investing in children&#39s day nurseries in the UK Minimum investment: Lump sum £2,500 Closing date: April 5, 2004 for 2003/2004 tax year, July 30, 2004 for 2004/2005 tax year Charges: Initial 6.5% Commission: Initial 2.5% Tel: 020 74114700

MPs set to attack endowment bosses – reports

Reports today claim that the Treasury&#39s report into restoring confidence in long term savings: endowment mortgages, to be published on Thursday, will be one of the strongest attacks ever made on the the financial services industry. The reports say that directors will be told by the Treasury Committee that their 72 per cent pay rises […]

Shell shock of liability move

There is a great deal of discontent among IFAs about Berkeley Berry Birch&#39s move to leave liabilities with the shell of Berry Birch & Noble FS. It also sees a liability-free IFA emerge from the ashes. The move echoes one made by Towry Law a few years back but at this stage does not seem […]

A consumer&#39s view

The FSA&#39s proposals for depolarisation have been met with the predictable welcoming reaction as the industry puts a brave face on what is basically a mess. But there is more than a hint of resignation about some of the comments. Depolarisation was never a good idea and was only considered as a sop to the […]

Choose life…

Sarah Scott  – Marketing Consultant, Royal London  This month sees the return of Renton, Sickboy, Begbie and Spud in the sequel to the film Trainspotting. Just over 20 years later, we return to see exactly how life treated the characters whose lifestyle was less than ideal back in 1996. Did they choose a job, choose […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com