Premium Bars records £21.4m loss

By Ewan Turney

- Last updated on GMT

Related tags 2009 1913 Pbr

Living Room is one of PBR's key assets
Living Room is one of PBR's key assets
Troubled operator Premium Bars and Restaurants (PBR) recorded a pre-tax loss of £21.4m for the year to 30 June 2008.

Troubled operator Premium Bars and Restaurants (PBR) recorded a pre-tax loss of £21.4m for the year to 30 June 2008.

PBR de-listed its shares on the Alternative Investment Market on 30 December last year and was been given short-term funding by its banks on the basis that it seeks a a buyer for some or all of its assets.

The move amounts to an enforced fire sale of PBR's assets, which includes the Bel and Dragon pub chain and the Living Room chain of bars.

Group like-for-like sales were down 5% while food sales increased to £16.1m from £2.1m thanks to the acquisition of Bel and Dragon and The Living Room. Food sales now represents 24% of sales.

Group revenue shot up 80% to £66m but the loss before tax increased to £21.4m from £2.6m the year before.

The company saw unit ebitda increase 43% to £9.9m, although the figure was diluted due to a £1.1m loss from seven outlets, which are currently on the market.

PBR incurred an impairment charge of £14m following a review of its freehold estate (£17.8m including leasehold sites). There was a further £1.1m impairment charge against the goodwill on the acquisition of Prohibition in Liverpool after it closed following the building of a £920m shopping complex in the City.

A statement said: "Whilst the Directors have no commitment of continuing support from its banks, or agreement to a renewal of facilities beyond 26th June 2009, they continue to explore all realistic alternatives for the Group and the Company.

"In the event that a solution involving the sale of part or all of the Group's business and/or assets cannot be achieved on suitable terms, the Board has appointed advisors to assist the Directors in determining the best option, or a combination of options, to secure and maximise the value in the Group and the Company, including exploring the possibility of funding beyond 26th June 2009."

It added that it expected trading to remain "very challenging". Overall sales for the 39 week period from 1 July 2008 are 5.5% down on last year.

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