Eclectic Bars to continue expansion
Eclectic Bars, the Sakura and Po Na Na operator, plans to continue its expansion after unveiling a 3% rise in like-for-like sales for the 11 months to 31 May.
Total sales for the period were up 12% with Earnings Before Interest, Tax, Depreciation and Amoritisation (EBITDA) up 57% on last year.
Eclectic's three new openings are trading well, generating annual cash-on-cash returns between 25% and 30%.
The Sakura units, which opened in Lincoln in October 2007 and in Reading in May 2008, both exceeded these targets with returns of 56% and 54% in their first two years of trading.
Embargo 59 in Chelsea, which was refurbished in June 2009, has already fully repaid its investment costs, leaving it on track to deliver a return of 130% at the end of its first year.
"Expansion will continue next year with a number of new developments," it said.
"Planning and licensing consents have been agreed for a third Sakura in Manchester and the company's existing unit in Brighton re-opens in July as 'Lola Lo', a new-format Polynesian-themed bar and club.
"Negotiations are currently ongoing in respect of a number of other interesting opportunities.
"Eclectic's overall strategy is to continue to assemble, grow and improve a large portfolio of bars.
"The current and new brands within the estate have proved to be strong and resilient cash contributors, which provide an excellent template from which to develop and enhance the many venues and businesses coming onto the market from failed operators.
"Market conditions continue to present prospects for sensibly-priced acquisitions which will enable Eclectic to consolidate its strong position in the sector."
