Springwood appoints new chief operating officer
Springwood Leisure has appointed a new chief operating officer as the bar and nightclub operator battles with tough trading conditions.
New appointee Jez King replaces operations director Nigel Dennett, who has resigned with immediate effect, and has a brief "to initiate change and introduce new management".
Adam Page, executive chairman of Springwood said: "We are delighted that Jez is joining us as chief operating officer. His background offers us his strong understanding of the sector, as well as broad-based expertise in operational systems."
Mr King was previously operations director of Regent Inns and as also with Scottish and Newcastle from 1992 to 2000, where was an area manager with S&N Retail and later operations director of holiday business Pontins.
Springwood, which operates around 40 outlets including the Zanzibar and Cobarna chains said that trading conditions were below expectations in crucial final weeks of 2002. The top performing venues performed well, with the main problems coming from those due for redevelopment. Springwood said that January has seen an expected slow start, since when "the decline in trading appears to have been arrested and we are working hard to achieve better results in the first quarter compared to last year."
A range of cost cutting measures implemented towards the end of last year, including a number of head office job cuts, have led to "substantial overhead savings and improved operational efficiency."
The company expects to announce pre tax profits for continuing operations before exceptional charges of circa £3 million. Profits will be lower than originally anticipated because of the general downturn in trade in the sector, as well as the trading difficulties at the underperforming units.
Springwood said that there are increasing signs that "me too" high street bars are coming under trading pressure, with traditional nightclubs and late night venues are now reasserting themselves. A new generation of Zanzibars is planned to meet conumer demand.
