Tony Hill steps down at SFI
Andrew Latham, managing director of SFI Retail, is to take over as group chief executive from Tony Hill, who will step down in April.
Mr Hill will remain on the board as non-executive chairman at SFI Group, the pub and bar group that owns the Slug & Lettuce, Litten Tree, and Bar Med brands.
"I was 65 last week," said the outgoing boss. "It was important to get some younger hands on board and I am delighted to announce Andrew's promotion."
The company had been searching for a chief executive for a year, and recently lost finance director James Kowszun, who is leaving to head-up pub and restaurant group Hartford. A replacement is yet to be announced.
Mr Latham's appointment came as the group announced half-year results which were ahead of expectations - profits hit £9.3m against a projected £9m.
Like-for-like sales, which were taken from 66 of the 172 SFI outlets rose four per cent, boosted by Litten Tree, where sales rose 36 per cent and profits were up 56 per cent.
The company said the problems that had dogged Bar Med had been addressed with some being converted to Slug & Lettuce.
"It's a bit like an ocean liner," said Mr Hill. "It takes time to turn it round."
He said that the Bar Med concept had been pushed into some inappropriate locations: "We now know that it needs at least 4,000 sq ft and a late licence (1am) to operate successfully."
The company said it may have identified a fourth brand in Havana, the salsa-themed bar, after testing the concept in Liverpool. The company will now open a second venue in Fulham, west London.
Mr Hill said that he felt as if the company was a forced seller of lap-dancing chain For Your Eyes Only. The company expects to dispose of the business in the next few months.
SFI said it recently changed its broker from Beeson Gregory to Peel Hunt in offensive play against the ailing share-price.
The company had also made moves to reduce its high gearing. "We are not concerned about our gearing levels," said Mr Hill, "but you cannot ignore shareholders. There is a perception in the market that it is too high."
The company plans to reduce gearing to 100 per cent within two years.
Finance director James Kowszun, working out his notice period, added: "With interest rates where they are, it is almost dangerous to become under-geared because then the interests of shareholders are not maximised."
The group currently has debts of about £140m. Forecasts going forward were unchanged.
Related stories:
Finance director Kowszun quits SFI (11 February 2002)
