The operator of 17 bars across the north of England under concepts including Banyan Bar & Kitchen, The Box and Manahatta brands revealed that adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the year to 31 March 2019 increased by 15% from £3.2m to £3.7m.
The group – which currently operates nine Banyan venues, five Manahatta sites and two Box bars – also saw turnover increase by £3.9m over the same period from £23.3m to £27.2m, which represents a 16.7% rise, in addition to 1.1% growth in like-for-like sales.
What’s more, Arc Inspirations invested more than £7.5m over the course of its last financial year, opening five new sites in Manchester, Leeds and Newcastle across a six-month period while disposing of two venues as part of its selective expansion plans.
According to the £32m turnover company’s latest financial results, plans are afoot to open more sites in new locations across the north and Midlands.
Peak of the sector
As reported by The Morning Advertiser, CGA Insight and AlixPartners’ quarterly Market Growth Monitor revealed the number of premium bars and licensed cafés has increased by 4.1% in the year to March 2019.
It cited the rollout of managed groups, such as Arc Inspirations, as one of the key drivers of the hospitality sector's premium, all-day movement.
“We have enjoyed, arguably, our most successful year in the company’s history and believe we are now operating at the very peak of the sector, delivering through our continued focus on our people, brands and guest experience,” Arc Inspirations’ chief executive Martin Wolstencroft said.
“Successfully opening five sites in the space of six months, including making our debut in the city of Newcastle, was a fantastic achievement.
“Across the year, we have invested heavily in our teams and internal systems to support these new openings and position the business for future growth.
“Our cluster model is proving successful in our chosen markets and we are actively exploring opportunities for new sites in a number of targeted locations, which means there are some very exciting times ahead for the business as we look forward to the full-year contribution of our new sites.”