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Julian Gibbs

I rarely recommend an enterprise investment scheme as they are usually aimed at investors who want to gamble. However, an exception is Tomahawk Pubs plc, which will be an asset-backed, dividend-paying EIS. Tomahawk intends to purchase, operate and develop a portfolio of strategically located pubs within the M25.

The pubs will appeal to local residents and businesspeople alike. While drink sales are expected to provide the majority of turnover, the high quality food that they are going to offer, at a standard to compete with any local restaurant, will be the key to enhancing revenue and profitability.

I visited the Builders Arms in Chelsea, a pub run by Geronimo, which will be running the Tomahawk pubs. This one certainly has a great atmosphere and looks to me very profitable.

Geronimo has the distinction of having six pubs rated by Michelin. Miles Templeman, the chairman, was managing director of Whitbread Beer, as well as being on the main board. Nigel Banks, the chief executive, has 30 years&#39 experience in the acquisition, refurbishment and operation of pubs, including 10 years as operations director of Whitbread.

Unlike many other EISs, this one is likely to produce a rising dividend income. A point often forgotten is that EIS investors can go back up to three years to defer tax on previously incurred capital gains. They also get 20 per cent income tax relief so the total tax relief for those eligible is 60 per cent of their initial investment.

It closes fairly shortly so those who wish to invest should contact Richard Eliott-Lockhart of Kreis Consulting on 0141 564 1523. This is the one EIS I have come across which I can recommend, even to risk-adverse investors.

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