Table of Contents

1.0 Executive Summary .............................................................................................................................. 1 1.1 Mission .............................................................................................................................................. 1 1.2 Focus Areas ....................................................................................................................................... 1 2.0 Company Summary .............................................................................................................................. 2 3.0 Market Analysis Summary ................................................................................................................... 2 4.0 Strategy and Implementation Summary................................................................................................ 3 4.1 Promotional Stratergy....... 3 5.0 Sales Forecast........................................................................................................................................ 5 5.1 Love and Liquor Financial Analysis ... 6 5.2 Forecast Profit...7 6.0 Conclusion.... 8

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Introduction Investment required 300,000 net investment required for 50% equity in acquisition of Love and Liquor. Investments will start at 10,000 for a proportional share. Remaining 50% share will remain with Concept 21 Ltd. Four apartments are included in the acquisition, in addition to the night club. Return on investment Forecasted return on investment is seven months. This makes the investment proposition an incredibly lucrative one, with vast amounts of profit to be made. This proposal will detail how this scale of return is achieved. Background on Concept 21 Ltd. Concept 21 Ltd is an extremely successful promotions company. Its core brand AQUILA London Events, is the most successful mid-week events company in London (measured by net attendance), operating in a range of Londons best clubs including but not limited to: XOYO, Movida, Pacha, Proud Camden, Supperclub, Anaya, Scala, Jalouse, The mermaid and No. 5 Cavendish. Concept 21 Ltd also operates promotional services for venues around the UK. Background on Love and Liquor Love and Liquor is an established, profitable venue based in Kilburn, North London. Love and Liquor is located in Kilburn, north London, only a few minutes walk from Kilburn station. The venue is a 6,600 square foot complex that can accommodate up to 600 people at any one time. It has strong transport links, and is one of very few high capacity venues outside of central London. The venue also has four flats, which are rented out to tenants, providing additional revenue.

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1.0 Executive Summary Concept 21 Ltd will acquire Love and Liquor, taking on all operational responsibilities and promotions, dramatically increasing net attendance, table bookings, and profit. Concept 21 has reached levels of success in a short space of time, un-paralleled by any competitor in London. It has managed to do so, by applying extremely successful promotional models and intelligent operational implementations. These promotional methods have been proved successful in every venue used. Promotion is the key to night club success. Most night clubs fail because they do not manage to achieve high door numbers or quantity of table bookings. As such, they often use promotional companies to achieve what they cant. Concept 21 Ltd is the UKs leading night club promotional company. Love and Liquor already turns over substantial profit. Concept 21 Ltd will build on this success, increasing revenue dramatically, to maximize profit. The plan below will detail exactly how this will be achieved. Love and Liquor is currently only open on Friday and Saturdays.

1.1 Mission To build on the current success of Love and Liquor. Implement successful promotional models Reach door numbers of 800 plus on Friday and Saturday nights Launch new mid-weekly nights on a Thursday and Wednesday

1.2

Focus areas Increasing door revenue on existing Friday and Saturday nights Increasing table bookings Open doors earlier, leading to two waves of entrants Use strong sub-promoter models Page 1

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Improve and promote repeat attendance Introduce more live bands early in evening Improving quality of music Strict control of all outgoing costs Managing internal finances and cash flow to enable upward capital growth.

2.0 Company Ownership Concept 21 Ltd will maintain full control of management, operations and promotions of venue at all times, as well as control of tenancy of adjacent apartments.

3.0 Market Analysis Summary London is the largest city in the UK and so with it has the most night clubs. Most of these night clubs are situated in Zone 1, central London. Some advantages in the market: Existing brand: The venue already has a strong brand name and is known to many in North London. Location: Many London residents perceive a night out in central London to be tiresome, they often need to be dressed immaculately, and there is a risk they will get turned away at the door to a venue, despite being on guest list. As such, being located outside of central London has massive gains. In addition, it is a short journey for living in the residential area of North London, with over 3 million residents. Competitive edge: The night club industry is rife with unprofessionalism, lack of dynamism and initiative. Most venues in London operate a rudimental promotions model based around an expensive launch of the venue, followed by mis-management, total void of successful promotions, and heavy reliance of walk-up trade. By being massively more competent than most of the competition, the newly acquired venue can gain accordingly. Lack of competitors: A major advantage of this venue is an absence of direct competition. There is a distinct lack of venues exceeding 450 capacity, with a comfortable ambience, outside of central London. The area with most competition is Camden, which hosts an array of night clubs and bars. Concept 21 operated a club night every Wednesday at Proud Camden (1,000 capacity), for 12 months, and so has detailed knowledge of the area. Page 2

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4.0 Strategy and Implementation Summary Concept 21 will implement successful and proven promotional methods. The venue brand name will not be changed. Bar and entrance prices will remain the same, to achieve consistency with current customers.

4.1 Promotional strategy: Promotion can be divided into macro promotion and specific promotion. Macro promotion: Branding Although the brand name will not change, the branding will be improved. A new logo and visual brand will be created. The branding will be cool, trendy and sophisticated. Social media pages, accounts as well as the website will be changed accordingly.

Attracting the key demographic Love and Liquor currently attracts a vibrant mix of attendees on both a Friday and Saturday night. Concept 21 will build on this, attracting North London residents on a Saturday night, whilst focusing on young professionals on Friday night. The Thursday night, once launched will focus specifically on students. Concept 21 already runs the most successful Thursday student night in London, at XOYO. Wednesday night once launched will become sports night, again something Concept 21 has much experience of running. Specific promotion Sub-promoters Sub promoters are paid per head, to bring people to the venue. They actively promote the event through social media and are incentivized to bring as many people as possible to the events. The more subpromoters recruited, the more people come through the door of the venue. Concept 21 is the market leader in sub-promoter recruitment. Already possessing thousands of active sub-promoters, as well as a recruitment team. Recruitment is tailored specifically by demographic. Sub-promoters will be recruited on mass. There is relatively no limit to how many can be assigned to Page 3

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Love and Liquor and also recruited specifically for the task. And as such the venue can be filled every night by this method alone. Numerous Concept 21 club nights promoted solely by the sub-promoter model are testament to this. Celebrity bookings & celebrity endorsements Celebrity bookings and appearances are used to increase door figures, and also increase bar and table spend. Many celebrities have a strong following on social media, which is harnessed by Concept 21 in unique ways to assure hundreds of attendees per booking. Many other events have been promoted solely by this method. Celebrity attendees also encourages table bookings to increase their bottle spend as they feel a desire to impress.

Table bookings Concept 21 has a special table bookings team and many networks and databases of high-spenders which can be called upon to massively increase revenue of Love and Liquor. Possessing files of all previous table bookers, who can be called upon in only a few days notice to increase table bookings in the venue. Mass communications Concept 21 has extremely large databases and social media networks, achieving over 500,000 hits on social media every single week. Communication across these platforms is incredibly effective at promoting events, and has been used to great effect in the past. In addition, possessing huge databases of phone numbers, email addresses and social media accounts, allows instant communication to thousands of past attendees. Event invitations Event invitations on Facebook reach tens of thousands of people in seconds. Concept 21 has the largest Facebook networks of all events companies in London, and as such can reach vast numbers in seconds with one event invitation.

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5.0 Sales Forecast Forecasted attendance Current attendance at Love and Liquor is approximately 400 every Friday night, and 500 every Saturday night. The forecasted attendance per night (Friday and Saturday) after acquisition of the venue is as follows. Month 1: 450 (same as current) Month 2: 600 Month 3: 700 Month 4: 800 Month 5: 800 Month 6: 800 After month six, attendance will continue at 800 every night in every month there on after.

Table bookings Table bookings are forecast at the following frequency per Friday and Saturday night. Month 1: 6 per night Month 2: 10 per night Month 3: 15 per night Month 4: 15 per night Month 5: 15 per night Month 6: 15 per night

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5.1 Love and Liquor financial analysis Attached to this document is a spreadsheet of forecasted profit and loss, as well as current profit and loss financial information from the venue. Tab 1 on the spreadsheet is the Forecasted, tab 2 is the current P & L. Analysis of current venue financials: We can see that the venue currently operates at profit, and brings in strong monthly revenue from rental of apartments situated above the night club. There is a current average spend per head of 21.6 per attendee, which is a regarded as fairly high.

Assumed errors in previous accounts You can see on the financial accounts what the door revenue was plotted as. This is approximately 2,000 per calendar month. The venue was charging 7/10/12 on the door. Variances occurring dependent on day of the week and time of arrival. These figures are taken in cash, and not through tills, unlike the bar. And as such the interpretation is that there are abundant errors in the accounts as a result. Actual revenue from cash on tills are estimated to be between 20,000 and 25,000 per calendar month. Such figures can easily be worked out with some calculations. Average weekly attendance is 900, average door price (factoring in some free entries), is approximately 7, with 4/5 weeks per calendar month. A revenue estimation of between 20,000 and 25,000 is conservative. The cloak room, which charges 1 per item, too, can be found to be erroneous. Figures state approx. 900 per month. It can be calculated that this should be more like 1800 per calendar month. Again a conservative estimate, on 1 in 4 people entrants putting an item in the cloak room, usual figures are higher. Current and Amended finances For most recently recorded 6 months

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We can see from the graph above that once errors in financial documents have been amended , actual profit recorded by venue increases substantially. All months on graph record a healthy profit with the exception of September, which breaks even.

5.2 Forecasted profit after takeover We can see forecasted profit after Concept 21 acquires the venue, increases substantially. Projected profit for first 12 months

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The sales forecast indicates that there will be significant profit growth after the venue acquisition. We can see on Month one, there will be steady profit, increasing slightly on profit recorded in Oct 2013. This is due to no major changes implemented. This also allocates for a settling in period. In month 2, we see a dramatic spike in profit. As promotional methods and tools are heavily implemented and month 2 is also a five weekend month (most of course have 4). Month 4 also has five weekends and as such, combined with implemented promotion and strengthened macro promotion, we see extremely high pre-tax profits. After this, we can forecast long term sustained profit achieved in large by increased door and table revenue. Launch of new Thursday and Wednesday not included Concept 21 will open the venue on a Wednesday and a Thursday in 2014. For the basis of caution and conservatism, and also to make analysis of financials as simple as possible, these additional nights have not been included in financial documentation. Thus, had they been included predicted profit would be even higher than the attached financial spreadsheets show.

6.0 Conclusion As you can see, this is an extremely lucrative proposal. There are vast sums of profit to be made by investing. An investment of 100,000 would return 221,942 in the first 12 months alone, based on the forecasted figures. Profit would be a steady stream on all subsequent years. Promotional models as well as financial forecasts are all based on previous experience with tried and trusted methods, supporting the accuracy of predictions. A degree of caution has also been applied to all forecasts. Concept 21 has employed these promotional methods at numerous outside venues, night clubs that it does not own, for years. Having grown to become the most successful promotions company in London, it is time for it to acquire a night club and bring the success it has brought to others, for itself. We would encourage you to be a part of this highly lucrative growth for the company.

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