Deltic results show trade ‘continues to improve’
The assessment was given as the group announced a 1.4% rise in turnover to £102.2m with underlying earnings of £13.3m for the year to 25 February 2017.
It said the earnings, before interest, tax, depreciation and amortisation, were in line with the previous year.
More late-night customers
Slightly more people, an increase of just under 7%, visited its late-night venues during the year and there was a big rise of 47% in pre-booked sales.
Deltic, which runs 57 UK clubs and bars, and employs 3,000 staff, attributed much of its latest improvement to an ambitious refurbishment programme that has seen a past decline in trading turned round.
Refurbish and rebrand
In recent years three quarters of its bars and clubs have had new fixtures and fittings, and many have been rebranded.
The group is targeting a minimum 40% return on investment (ROI) on its existing estate and a 33% return on new developments.
Return on investment
It has opened three more of its bar concept, Bar&Beyond, during the period, operating seven days a week and capturing earlier evening trade with an improved food offering. Further openings are on the cards.
The company said: “In 2017 we have already opened Kings Lynn Bar&Beyond, Portsmouth PRYZM, and ATIKs in Edinburgh and Gloucester, with further investments planned in Hull, Wrexham, Uxbridge and Bournemouth.”
Deltic also operates the Fiction, Cameo, Kuda and Vinyl Retro Bar brands.
Historic challenges
The late night sector has faced a number of challenges historically, including the impact of student fees, as well as the under-invested nature of the properties, it said.
Chief executive Peter Marks said the board remains confident that the group was well placed to build on its momentum, with the current year having started well.
