Hotel Chocolat's 'Chocolate Bond'
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The Times has reported that Hotel Chocolat want to issue £5m of bonds to finance future expansion – but with a twist. Interest payments are paid in chocolate, and not cash. With tradtional bank rates still being at the lowest rate for decades then being sent a selection box worth £18 every two months would pay the equivalent yield of 6.7% on a £2,000 bond – which appears to be significantly above the market rate. If you wanted to ‘invest’ £4,000 then your yield would be 7.29%.
At the moment they’ve got 42 shops and they’re looking to increase that to 72 as well as to increase the size of their Huntingdon factory and expand their operations in St. Lucia.
At 28th June 2009 they had about £711,000 cash in the bank, but a negative working capital of £2,268,000 (or there abouts) and nearly made about £1m in profit. So I think they’re doing well. I’d actually prefer to own some shares in the company than a bond – but that’s my opinion. I think they’re going places and am very positive about their future. If you’re buying chocolate already and have the money spare then why not consider it?
I just novel things like this.
Featured: Hotel Chocolat
