Ultimate Leisure goes from strength to strength

Ultimate Leisure has grown into one of the industry success stories of recent years.

When Bob Senior (pictured)​ quit his job of 20 years to run a small chain of bars in Newcastle he had little idea he would be at the helm of a £30m entertainment group just four years later.

The £1m acquisition of New York, New York in Rotherham, South Yorkshire, is Ultimate Leisure's most recent addition to its portfolio and represents the latest chapter in one of the most compelling entertainment success stories to emerge from the North East.

The new club, the 23rd outlet opened by Ultimate, is also another step south for the Newcastle-based group.

Another newly opened bar in Nottingham's Lace Market and others planned in Leeds, Sheffield and Wigan are proof of the company's rapid growth.

Four years ago managing director Bob Senior was a bar manager for another company, Lazi Leisure. He was approached by Allan Rankin, a local businessman who was looking for someone to run and grow the business.

Rankin had heard about Bob and his good reputation in the area. "He needed me to run the bars he had bought but I only had 72 hours to decide.

It certainly concentrated my mind," says Bob. "I was in a comfort zone. I had been at Lazi Leisure for 20 years. I must have been mad - I was 44 and taking a jump into the dark with somebody I didn't know."

Taking over a handful of pubs that had seen better days and working with a stranger would not appeal to everyone.

But Bob never looked back. He joined Rankin and his new venture which at the time consisted of a 36-roomed hotel on the Quayside, the adjoining Jimmyz bar, and three brash Bigg Market bars, with a total capacity of around 2,000.

He faced the momentous challenge of expanding the group in a city which already had 160 pubs, 125 restaurants and 16 clubs in just one square mile.

The congestion meant licensing was a real issue. With an influx of 80,000 revellers each weekend, Newcastle was earning an international reputation as the party city, with some bars taking £10,000 on a Saturday night. But it was also labelled the second most violent city centre in Britain. This compounded the licensing problems.

The situation was made worse by a campaign from Quayside residents who opposed the late night activity and some of the marginal behaviour that went with it.

Despite the problems, Bob went ahead with the company's expansion, firstly with Chase, a converted garage on the Quayside. The previous owners had failed to gain a licence. Ultimate bought and refurbished the venue for £5m and by fitting a restaurant and reducing the capacity from 960 to 560, gained police approval.

Aimed at young professionals, it was a resounding success. "We recognised that market was booming all over the country. At that time, Newcastle had nothing as cutting edge."

Next stop was Whitley Bay, another area with a history of complaints from residents who had seen their town become one of Britain's most popular stag and hen party destinations.

Ultimate bought the 70-room Rex Hotel on the seafront for £4.3m. "I recognised the huge potential of the place," said Bob. "The Rex was a hotel with a massive, under-exploited licensed area." The old ballroom was floored over, with the lower half turned into a function room and the upper half converted into Deep nightclub. With two adjoining bars there was room for 1,365 punters.

The hotel was raided by police shortly before Ultimate took over and the company had to work hard to shake off the Rex's drug-tainted reputation. "We ran the place properly," said Bob. "We even put on buses to carry customers back to outlying towns." It finally won a long-standing battle for a 2am licence last month.

The company progressed to Sunderland with the £1.2m Fino's, a 400-capacity club, and Jonny Ringo's, a 100-cover Tex-Mex restaurant.

Jonny Ringo's turned out to be such a success that Bob took the theme back to Newcastle. Ultimate spent £1.8m buying and refurbishing a former NatWest bank but police opposed the licence application over fears the bar would link two major drinking circuits, Bigg Market and Quayside. Ultimate successfully appealed to the Crown Court, arguing Jonny Ringo's would be geared to diners rather than drinkers.

The company then expanded into Durham, transforming an 1820s riverside building into a £3.5m four-storey 1,000 capacity bar and restaurant.

Last year Ultimate opened Sea, a £4.2m 1,000-capacity nightclub on the Quayside in Newcastle, in a former Victorian fish market. It made £1.2m profit in its first year.

Ultimate also bought four Allied Leisure bars in Newcastle city centre, including three in Bigg Market, for £3.7m.

"Bigg Market has been a drinking circuit for 100 years and over that time it has waned. We bought in on the down, knowing it would eventually rise again. We now own 50 per cent of Bigg Market."

Ultimate listed on AIM (Alternative Investment Market) two years ago. The company's financial figures make for impressive reading - most recently a 33 per cent rise in profits to £4.2m on sales that were up 38 per cent to £16.6m.

Bob Senior's gamble has paid off. He's now in charge of a £30m company and with 23 pubs, nightclubs, hotels and restaurants, the company is a top player in the North East.

While on the acquisition trial, he has faced problems at every turn. That Ultimate has emerged as one of the shining lights in its sector speaks volumes for its management but Bob does not indulge in self acclaim.

He says much of the group's success is down to hard work and common sense.

"We've done nothing more than anyone else could have," said Bob. "We spend the right amount of money on great premises in top locations. We buy in established markets and we don't discount on a Friday and Saturday because we are already full."

Expansion is still the key word for Ultimate Leisure. It has bought the 18-bedroom Gresham Hotel in Newcastle for £1.1m to develop the licensed area. The group is also set to open more bars in the north.

"Four years ago there were many who thought we'd never make it. Now we're among the top three operators in the North East," he said. "Our profits are among the best in the industry."

Bob says the meteoric rise of Ultimate Leisure is merely the start, and with his track record to date, few would doubt him.

The rise of Ultimate Leisure​

• 1997:​ Allan Rankin takes over four bars and a hotel in Newcastle and appoints Bob senior as managing director
• 1998: ​The company opens Chase, a bar and restaurant in a central location in the Quayside area. Targeting young professionals, Chase is an immediate success
• 1999:​ After buying another four bars in Newcastle, the company expands into Durham, Sunderland and Whitley Bay
• 1999:​ Ultimate Leisure lists on the Alternative Investment Market (AIM)
• 2000:​ Ultimate opens Sea at a £4.2m cost to buy, converting a Victorian fish market into a 1,000-capacity club. Within the first year, it's made £1.2m
• 2001:​ With 21 outlets already opened in the North East, Ultimate moves into Nottingham with further expansion set for Sheffield, Leeds, Rotherham and Wigan.

Company details​