Urbium braced for tough times
by The PMA Team Urbium, the Tiger Tiger operator, expects "difficult" trading conditions for the whole of 2003 after a lacklustre start to the year. The company, which claims 15% of the lucrative late-night West End market with its 16 outlets, has been "conserving its resources" because it believes property prices and rental values will have to drop to reflect the weakened economy. Chairman John Conlan said: "As early as February 2001 we noted a discernable downturn in demand in our City-related corporate and party business that trend continued in 2002." However, Urbium reported a strong December and second six months as new Tiger Tiger outlets in Croydon, Glasgow and Newcastle produced trading ahead of expectations. The company's website, latenightlondon.co.uk, helped boost business in central London with marketing initiatives aimed at its 100,000 registered users. "London is the most resilient market in a period of extended consumer downturn and the most lucrative when demand is strong," said Conlan. Urbium also opened its first site in the City of London, the 750-capacity Digress in Ropemarker Street, where "high levels of sales" indicated "growth potential" in the City. A new Tiger Tiger is set to open in Dublin in early 2004 and a smaller capacity Tiger Tiger ear-marked for smaller UK markets. Urbium also plans to open "contemporary formats" in affluent London suburbs and major markets around the M25. Banking facilities consist of a £50m medium-term facility an a £5m overdraft with £23m currently undrawn and uncommitted. Turnover for 2002 was up 38% to £59.9m, with profit before tax up by 139% to £4.3m. Conlan added: "Our relatively strong performance last year against challenging conditions is mainly due to positioning. We focus on an older, more affluent and less crowded market where we can compete on service and quality rather than price." Back to the future with retro-fit
Urbium's Tiger Tiger brand has maintained growth at all sites except Birmingham, the company's first regional opening. Urbium has undertaken a "retro-fit" using "some of the design and layout modifications used in recent successful openings" to improve its performance. In 2002, the original Haymarket Tiger Tiger now four years old turned in profits "ahead" of the year before.
New Year's Eve in London was "disappointing" with the closure of Trafalgar Square, a lack of organised celebrations and "advice by various authorities to stay out of the West End".
